Does innovation explain the performance gap between privatized and private firms?
Journal of Economics and Business, 2021, vol. 113, issue C
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)
JEL-codes: L25 L33 O31 O32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jebusi:v:113:y:2021:i:c:s0148619519303832
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
Bibliographic data for series maintained by Catherine Liu ().