This article examines the effects of anti-corruption efforts on firm innovation in China. Based on the number of invention patent applications filed by firms, we find that firms located in areas with intense anti-corruption efforts are more innovative. We control for a broad set of firm and province characteristics, including industry-year fixed effects, and demonstrate the robustness of the results using an instrumental variable analysis, alternative proxies for anti-corruption intensity and innovation and a fixed-effect Poisson regression model. A heterogeneity analysis shows that the innovation-enhancing effects of anti-corruption efforts on the likelihood to apply for invention patents is greater for young companies and those without political connections, while no significant difference when conditional on having invention patent applications. Moreover, anti-corruption efforts have no significantly different effects between state-owned and private enterprises. Further analysis shows that anti-corruption efforts significantly increase investments in research and development and innovation efficiency, leading to enhanced productivity and firm growth in the following years.
机构:
Univ Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
NBER, Cambridge, MA 02138 USAUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
Agrawal, Ajay
;
Rosell, Carlos
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机构:
Dept Finance, 90 Elgin St, Ottawa, ON K1P 0C6, CanadaUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
Rosell, Carlos
;
Simcoe, Timothy
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h-index: 0
机构:
NBER, Cambridge, MA 02138 USA
Boston Univ, Questrom Sch Business, 595 Commonwealth Ave, Boston, MA 02215 USAUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
机构:
Univ Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
NBER, Cambridge, MA 02138 USAUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
Agrawal, Ajay
;
Rosell, Carlos
论文数: 0引用数: 0
h-index: 0
机构:
Dept Finance, 90 Elgin St, Ottawa, ON K1P 0C6, CanadaUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada
Rosell, Carlos
;
Simcoe, Timothy
论文数: 0引用数: 0
h-index: 0
机构:
NBER, Cambridge, MA 02138 USA
Boston Univ, Questrom Sch Business, 595 Commonwealth Ave, Boston, MA 02215 USAUniv Toronto, 105 St George St, Toronto, ON M5S 3E6, Canada