 Does innovation explain the performance gap between privatized and private firms?Barkat Ullah Journal of Economics and Business, 2021, vol. 113, issue C, No S0148619519303832 Abstract: In this study, using a unique firm-level survey database, I investigate innovation for privatized former state-owned enterprises (SOEs) versus originally private firms (private at inception) in 30 Eastern European and Central Asian (ECA) countries. Besides using an invention-based narrow definition of innovation, I use an imitation and adaptation-based broad definition of innovation. I find that origin of the firm matters for its innovativeness; privatized former SOEs in transition economies are less innovative than originally private firms. The results hold after controlling for important firm and country characteristics affecting firm innovativeness. Using alternative, patent-based innovation measures provides support to the main findings of the study. These findings on the relation between firm origin and innovation provide a possible explanation for the underperformance of privatized firms compared to private firms. Keywords: Firm innovation; Privatization; Firm growth; Transition economy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:113:y:2021:i:c:s0148619519303832 DOI: 10.1016/j.jeconbus.2020.105946 Access Statistics for this article Journal of Economics and Business is currently edited by Emanuele Bajo and Moritz Ritter More articles in Journal of Economics and Business from Elsevier |
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