NDLI: Rethinking the government as innovator: Evidence from Asian firms

Content Provider	Springer Nature Link
Author	Poczter, Sharon
Copyright Year	2016
Abstract	Can government ownership of a firm spur innovation? While a robust body of empirical and theoretical work suggests that government ownership suppresses innovation, the increasing global competitiveness of government-owned firms coupled with the transition of these firms’ competitive advantage from low-cost labor-focused to innovation-focused suggests we reconsider the relationship between government ownership and innovation. This paper develops and tests a theory that a minority level of government ownership has a positive influence on firm-level innovation, by substituting for a better-developed financial market and alleviating financial constraints. By combining the incentives and monitoring benefits of private ownership with the more “patient” shareholders of and protection from failure by the state, minority government ownership can provide an environment for firms to pursue otherwise risky innovative projects. The testing of this theory makes use of a large sample of Asian firms, and the results with respect to matched minority government-owned and privately held firms show that minority government ownership increases the likelihood of innovation among financially constrained firms; moreover, it especially increases the likelihood of process innovation (as opposed to product innovation), which is traditionally difficult to finance. The study’s results—which stand to benefit firms and governments worldwide—remain robust to alternative mechanisms and controls, as well as to a variety of sensitivity tests.
Starting Page	367
Ending Page	397
Page Count	31
File Format	PDF
ISSN	02174561
Journal	Asia Pacific Journal of Management
Volume Number	34
Issue Number	2
e-ISSN	15729958
Language	English
Publisher	Springer US
Publisher Date	2016-10-19
Publisher Place	New York
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Government ownership Innovation Financing Management Business and Management
Content Type	Text
Resource Type	Article
Subject	Business and International Management Economics, Econometrics and Finance Strategy and Management

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
6	Contents and Copyright Issues	Queries related to content curation and copyright issues	content@ndl.gov.in
7	National Digital Library of India Club (NDLI Club)	Queries related to NDLI Club formation, support, user awareness program, seminar/symposium, collaboration, social media, promotion, and outreach	clubsupport@ndl.gov.in
8	Digital Preservation Centre (DPC)	Assistance with digitizing and archiving copyright-free printed books	dpc@ndl.gov.in
9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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