Economic and Technological Importance of Innovations in Large Family and Founder Firms: An Analysis of Patent Data

Family Business Review

Volumn 26, Issue 2, 2013, Pages 180-199

  Block, Joern ^a,b   Miller, Danny ^c,d   Jaskiewicz, Peter ^d   Spiegel, Frank ^e  

^a UNIVERSITY OF TRIER   (Germany)

^b ERASMUS UNIVERSITY ROTTERDAM   (Netherlands)

^c HEC MONTRÉAL   (Canada)

^d UNIVERSITY OF ALBERTA   (Canada)

^e TECHNICAL UNIVERSITY OF MUNICH   (Germany)

Author keywords

founder firms; innovation; patent citations; patents; technological importance

Indexed keywords

EID: 84877684908     PISSN: 08944865     EISSN: 17416248     Source Type: Journal    
DOI: 10.1177/0894486513477454     Document Type: Article

References (112)

1. Acs Z.,Audretsch D.Innovation in large and small firms: An empirical analysis.American Economic Review. 1988;78:678-690.
2. Aghion P.,Howitt P.A model of growth through creative destruction.Econometrica. 1992;60:323-351.
3. Anderson R. C.,Lee D. S.Ownership studies: The data source does matter.Journal of Financial and Quantitative Analysis. 1997;32:311-329.
4. Anderson R. C.,Reeb D. M.Founding family ownership and firm performance: Evidence from the S&P 500.Journal of Finance. 2003;58:1301-1328.
5. Arundel A.The relative effectiveness of patents and secrecy for appropriation.Research Policy. 2001;30:611-624.
6. Arundel A.,Kabla I.What percentage of innovations are patented? Empirical estimates for European firms.Research Policy. 1998;27:127-141.
7. Baysinger B. D.,Kosnik R. D.,Turk T. A.Effects of board and ownership structure on corporate R&D strategy.Academy of Management Journal. 1991;34:206-214.
8. Bennedsen M.K.,Nielsen M.K.,Pérez-González F.,Wolfenzon D.Inside the family firm: The role of families in succession decisions and performance.Quarterly Journal of Economics. 2007;122:647-691.
9. Berrone P.,Cruz C.,Gomez-Mejia L. R.Socioemotional wealth in family firms: Theoretical dimensions, assessment approaches, and agenda for future research.Family Business Review. 2012;25:258-279.
10. Berrone P.,Cruz C.,Gomez-Mejia L. R.,Larraza-Kintana M.Socioemotional wealth and corporate responses to institutional pressures: Do family-controlled firms pollute less?.Administrative Science Quarterly. 2010;55:82-113.
11. Bertrand M.,Schoar A.The role of family in family firms.Journal of Economic Perspectives. 2006;20 (2): 73-96.
12. Bessen J.,Hunt R.M.An empirical look at software patents.Journal of Economics & Management Strategy. 2007;16:157-189.
13. Blind K.,Edler J.,Frietsch R.,Schmoch U.Motives to patent: Empirical evidence from Germany.Research Policy. 2006;35:655-672.
14. Block J.Family management, family ownership, and downsizing: Evidence from S&P 500 firms.Family Business Review. 2010;23:109-130.
15. Block J.R&D investments in family and lone founder firms: An agency perspective.Journal of Business Venturing. 2012;27:248-265.
16. Bloom N.,Van Reenen J.Measuring and explaining management practices across firms and countries.Quarterly Journal of Economics. 2007;122:1351-1408.
17. Breitzman A.,Thomas P.,Cheney M.Technological powerhouse or diluted competence: Techniques for assessing mergers via patent analysis.R&D Management. 2002;32:1-10.
18. Brickley J. A.,Lease R. C.,Smith C. W.Ownership structure and voting on antitakeover amendments.Journal of Financial Economics. 1988;20:267-291.
19. Bushee B. J.The influence of institutional investors on myopic R&D investment behavior.Accounting Review. 1998;73:305-333.
20. Boone C.,de Brabander B.,van Witteloostuijn A.CEO locus of control and small firm performance.Journal of Management Studies. 2007;33:667-700.
21. Chang S. C.,Wu W. Y.,Wong Y. J.Family control and stock market reactions to innovation announcements.British Journal of Management. 2010;21:152-170.
22. Chen H. L.,Hsu W. T.Family ownership, board independence, and R&D investment.Family Business Review. 2009;22:347-362.
23. Chrisman J. J.,Patel P. C.Variations in R&D investments of family and non-family firms: Behavioral agency and myopic loss aversion perspectives.Academy of Management Journal. 2012;55:976-997.
24. Chung K. H.,Pruitt S. W.A simple approximation of Tobin's q.Financial Management. 1994;23 (3): 70-74.
25. Combs J. G.Big samples and small effects: Let's not trade relevance and rigor for power.Academy of Management Journal. 2010;53:9-13.
26. Coombs J. E.,Bierly P. E.Measuring technological capability and performance.R&D Management. 2006;36:421-438.
27. Covin J. G.,Slevin D. P.Strategic management of small firms in hostile and benign environments.Strategic Management Journal. 1989;10:75-87.
28. Czarnitzki D.,Kraft C.Capital control, debt financing and innovative activity.Journal of Economic Behavior & Organization. 2009;71:372-383.
29. Dahlin K. B.,Behrens D. B.When is an invention really radical?: Defining and measuring technological radicalness.Research Policy. 2005;34:717-737.
30. De Massis A.,Frattini F.,Lichtenthaler U.Research on technological innovation in family firms: Present debates and future directions.Family Business Review. 2012;:.
31. De Rassenfosse G.How SMEs exploit their intellectual property assets: Evidence from survey data.Small Business Economics. 2012;39:437-452.
32. Dlugosz J.,Fahlenbrach R.,Gompers P.,Metrick A.Large blocks of stock: prevalence, size and measurement.Journal of Corporate Finance. 2006;12:594-618.
33. Duguet E.,Kabla I.Appropriation strategy and the motivations to use the patent system: an econometric analysis at the firm level in French manufacturing.Annales d'Économie et de Statistique. 1998;49/50:289-327.
34. Geroski P.,Machin S.,Van Reenen J.The profitability of innovating firms.RAND Journal of Economics. 1993;24:198-211.
35. Geroski P.,Walters C. F.Innovative activity over the business cycle.Economic Journal. 1995;105:916-928.
36. Gomez-Mejia L. R.,Nunez-Nickel M.,Gutierrez I.The role of family ties in agency contracts.Academy of Management Journal. 2001;44:81-95.
37. Gomez-Mejia L. R.,Haynes K. T.,Nunez-Nickel M.,Jacobson K. J. L.,Moyano-Fuentes J.Socioemotional wealth and business risks in family-controlled firms: Evidence from Spanish olive oil mills.Administrative Science Quarterly. 2007;52:106-137.
38. Gomez-Mejia L. R.,Cruz C.,Berrone P.,De Castro J.The bind that ties: Socioemotional wealth preservation in family firms.Academy of Management Annals. 2011;5:653-707.
39. Gomez-Mejia L. R.,Hoskisson R. E.,Makri M.,Sirmon D. G.,Campbell J. T.Innovation and the preservation of socioemotional wealth: The paradox of R&D investment in family controlled high technology firms. College Station: Texas A&M University, Mays Business School; 2011:.
40. Grabowsky H.,Vernon J.A new look at the returns and risks to pharmaceutical R&D.Management Science. 1990;36:804-821.
41. Griliches Z.Patent statistics as economic indicators: a survey.Journal of Economic Literature. 1990;28:1661-1707.
42. Hagedoorn J.,Cloodt M.Measuring innovative performance: Is there an advantage in using multiple indicators?.Research Policy. 2003;32:1365-1379.
43. Hall B. H.The financing of research and development.Oxford Review of Economic Policy. 2002;18:35-51.
44. Hall B. H.,Jaffe A. B.,Trajtenberg M.The NBER patent citations data file: Lessons, insights and methodological tools. Cambridge, MA: National Bureau of Economic Research; 2001:.
45. Hall B. H.,Jaffe A. B.,Trajtenberg M.Market value and patent citations.RAND Journal of Economics. 2005;36:16-38.
46. Hall B. H.,Ziedonis R. H.The patent paradox revisited: an empirical study of patenting in the U.S. semiconductor industry, 1979-1995.RAND Journal of Economics. 2001;32:101-128.
47. Hansen J. A.Innovation, firm size, and firm age.Small Business Economics. 1992;4:37-44.
48. Hansen G. S.,Hill C. W. L.Are institutional investors myopic? A time-series study of four technology-driven industries.Strategic Management Journal. 1991;12:1-16.
49. Harabi N.Appropriability of technical innovations. An empirical analysis.Research Policy. 1995;24:981-992.
50. Harhoff D.,Narin F.,Scherer F. M.,Vopel K.Citation frequency and the value of patented inventions.Review of Economics and Statistics. 1999;81:511-515.
51. Harhoff D.,Scherer F. M.,Vopel K.Citations, family size, opposition and the value of patent rights.Research Policy. 2003;32:1343-1363.
52. Häussler C.,Harhoff D.,Müller E.To be financed or not: The role of patents for venture capital financing. 2009;:.
53. Hausman J. A.Specification tests in econometrics.Econometrica. 1978;46:1251-1271.
54. He J.,Wang H. C.Innovative knowledge assets and economic performance: The asymmetric roles of incentives and monitoring.Academy of Management Journal. 2008;52:919-938.
55. Hill C. M. L.,Snell S. A.External control, corporate strategy and firm performance in research intensive industries.Strategic Management Journal. 1988;9:577-590.
56. Himmelberg C. P.,Petersen B. C.R&D and internal finance: A panel study of small firms in high-tech industries.Review of Economics and Statistics. 1994;76:38-51.
57. Holmstrom B.Agency costs and innovation.Journal of Economic Behavior & Organization. 1989;12:305-327.
58. Jansen J. J. P.,Van Den Bosch F. A. J.,Volberda H. W.Exploratory innovation, exploitative innovation, and performance effects of organizational antecedents and environmental moderators.Management Science. 2006;52:1661-1674.
59. Kahneman D.,Tversky A.Prospect theory: An analysis of decision under risk.Econometrica. 1979;47:263-292.
60. Keil T.,Maula M.,Schildt H.,Zahra S.A.The effect of governance modes and relatedness of external business development activities on innovative performance.Strategic Management Journal. 2008;29:895-907.
61. Kim J.,Marschke G.Accounting for the recent surge in U.S. patenting: Changes in R&D expenditures, patent yields, and the high-tech sector.Economics of New Innovation and New Technology. 2004;13:543-558.
62. Kirzner I.Perception, opportunity, and profit: Studies in the theory of entrepreneurship. Chicago, IL: University of Chicago Press; 1979:.
63. Kochhar R.,David P.Institutional investors and firm innovation: A test of competing hypotheses.Strategic Management Journal. 1996;17:73-84.
64. Kroll M.,Walters B. A.,Le S. A.The impact of board composition and top management team ownership structure on post-IPO performance in young entrepreneurial firms.Academy of Management Journal. 2007;50:1198-1216.
65. Langlois R.The entrepreneurial theory of the firm and the theory of the entrepreneurial firm.Journal of Management Studies. 2007;44:1107-1124.
66. Lanjouw J. M.,Schankerman M.Patent quality and research productivity: measuring innovation with multiple indicators.Economic Journal. 2004;114 (April): 441-465.
67. Le S. A.,Walters B.,Kroll M.The moderating effects of external monitors on the relationship between R&D spending and firm performance.Journal of Business Research. 2006;59:278-287.
68. Le Breton-Miller I.,Miller D.,Lester R.Stewardship or agency: a social embeddedness reconciliation of conduct and performance in public family businesses.Organization Science. 2010;22:704-721.
69. Lee P. M.,O'Neill H. M.Ownership structures and R&D investments of U.S. and Japanese firms: Agency and stewardship perspectives.Academy of Management Journal. 2003;46:212-225.
70. Levin R. C.,Klevorick A. K.,Nelson R. R.,Winter S.Appropriating the returns from industrial research and development.Brookings Papers on Economic Activity. 1987;3:783-831.
71. Lim E. N. K.,Lubatkin M. H.,Wiseman R. M.A family firm variant of the behavioral agency theory.Strategic Entrepreneurship Journal. 2010;4:197-211.
72. Lumpkin G. T.,Dess G.Clarifying the entrepreneurial orientation construct and linking it to performance.Academy of Management Review. 1996;21:135-172.
73. Makri M.,Lane P. J.,Gomez-Mejia L. R.CEO incentives, innovation, and performance in technology-intensive firms: A reconciliation of outcome and behavior-based incentive schemes.Strategic Management Journal. 2006;27:1057-1080.
74. Mann R. J.,Sager T. W.Patents, venture capital, and software start-ups.Research Policy. 2007;36:193-208.
75. McClelland D. C.The achieving society. Princeton, NJ: Van Nostrandt; 1961:.
76. Mehrotra V.,Morck R.,Shim J.,Wiwattanakantang Y.Must love kill the family firm? Some exploratory evidence.Entrepreneurship Theory and Practice. 2011;35:1121-1148.
77. Miller D.The correlates of entrepreneurship in three types of firms.Management Science. 1983;29:770-792.
78. Miller D.,Le Breton-Miller I.,Lester R.Family ownership and acquisition behavior in publicly traded companies.Strategic Management Journal. 2010;31:201-223.
79. Miller D.,Le Breton-Miller I.,Lester R.Family and lone founder ownership and strategic behavior.Journal of Management Studies. 2011;48:1-25.
80. Miller D.,Le Breton-Miller I.,Lester R.,Cannella A.Are family firms really superior performers?.Journal of Corporate Finance. 2007;13:829-858.
81. Miller D.,Minichilli A.,Corbetta G.Is family leadership always beneficial?.Strategic Management Journal. 2012;:.
82. Mishra C. S.,McConaughy D. L.Founding family control and capital structure: The risk of loss of control and the aversion to debt.Entrepreneurship Theory and Practice. 1999;23 (4): 53-64.
83. Morck R.,Wolfenzon D.,Yeung B.Corporate governance, economic entrenchment, and growth.Journal of Economic Literature. 2005;43:655-720.
84. Morck R.,Yeung B.Agency problems in large family business groups.Entrepreneurship Theory and Practice. 2003;27:367-382.
85. Munari F.,Oriani R.,Sobrero M.The effects of owner identity and external governance systems on R&D investments: a study of Western European firms.Research Policy. 2010;39:1093-1104.
86. Muñoz-Bullón F.,Sanchez-Bueno M. J.The impact of family involvement on the R&D intensity of publicly traded firms.Family Business Review. 2011;24:62-70.
87. Narayanan M. P.Managerial incentives for short-term results.Journal of Finance. 1985;40:1469-1484.
88. Narin F.,Noma E.,Perry R.Patents as indicators of corporate technological strength.Research Policy. 1987;16 (2-4): 143-155.
89. Nelson T.The persistence of founder influence: Management, ownership, and performance effects at Initial Public Offering.Strategic Management Journal. 2003;24:707-724.
90. Pérez-González F.Inherited control and firm performance.American Economic Review. 2006;96:1559-1588.
91. Podolny J. M.,Stuart T. E.A role based ecology of technological change.American Journal of Sociology. 1995;100:1224-1260.
92. Reitzig M.,Henkel J.,Heath C.On sharks, trolls, and their patent prey-unrealistic damage awards and firms' strategies of being infringed.Research Policy. 2007;36:134-154.
93. Romer P. M.Endogenous technological-change.Journal of Political Economy. 1990;98 (5): 71-102.
94. Sahal D.Technological guideposts and innovation avenues.Research Policy. 1985;14 (2): 61-82.
95. Sandner P.,Block J.The market value of R&D, patents and trademarks.Research Policy. 2011;40:969-985.
96. Schulze W. S.,Lubatkin M.,Dino R. N.Exploring the agency consequences of ownership dispersion among the directors of private family firms.Academy of Management Journal. 2003;46:179-194.
97. Schulze W. S.,Lubatkin M. H.,Dino R. N.,Buchholtz A. K.Agency relationships in family firms: Theory and evidence.Organization Science. 2001;12:99-116.
98. Schumpeter J. A.Capitalism, socialism and democracy. New York, NY: Harper & Row; 1942:.
99. Schwarz G.Estimating the dimension of a model.Annals of Statistics. 1978;6:461-464.
100. Sirmon D. G.,Hitt M. A.Managing resources: Linking unique resources, management and wealth creation in family firms.Entrepreneurship Theory and Practice. 2003;27:339-358.
101. Spriggs M.,Yu A.,Deeds D.,Sorenson R. L.Too many cooks in the kitchen: Innovative capacity, collaborative network orientation, and performance in small family businesses.Family Business Review. 2012;:.
102. Suzuki J.Structural modeling of the value of patent.Research Policy. 2011;40:986-1000.
103. Thornhill S.Knowledge, innovation and firm performance in high- and low-technology regimes.Journal of Business Venturing. 2006;21:687-703.
104. Trajtenberg M.A penny for your quotes: Patent citations and the value of innovations.RAND Journal of Economics. 1990;21:172-187.
105. Tribo J. A.,Berrone P.,Surroca J.Do the type and number of blockholders influence R&D investments? New evidence from Spain.Corporate Governance: An International Review. 2007;15:828-842.
106. Verbeek M.A guide to modern econometrics. Chicester, England: Wiley; 2004:.
107. Villalonga B.,Amit R.How do family ownership, control and management affect firm value?.Journal of Financial Economics. 2006;80:385-417.
108. Wagner S.,Cockburn I.Patents and the survival of Internet-related IPOs.Research Policy. 2010;39:214-228.
109. Wasserman N.Stewards, agents, and the founder discount: Executive compensation in new ventures.Academy of Management Journal. 2006;49:960-976.
110. Wiseman R. M.,Gomez-Mejia L. R.A behavioral agency model of managerial risk taking.Academy of Management Journal. 1998;23:133-153.
111. Zahra S. A.,Neubaum D. O.,Huse M.Entrepreneurship in medium-size companies: Exploring the effects of ownership and governance systems.Journal of Management. 2000;26:947-976.
112. Zenger T. R.Explaining organizational diseconomies of scale in R&D: Agency problems and the allocation of engineering talent, ideas, and effort by firm size.Management Science. 1994;40:708-729.