Persistence of Politicians and Firms' Innovation

Bellettini, G.; Ceroni, Carlotta Berti; Prarolo, Giovanni

doi:10.1111/ecin.12015

Cited by 15 publications

(4 citation statements)

References 42 publications

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“…55 Interestingly, the model in Bellettini, Ceroni, and Prarolo (2014) also incorporates voting and shows how the environment with Schumpeterian innovation and political connections endogenously leads to political persistence. The authors also documented a negative relationship between political persistence and growth in Bellettini, Berti Ceroni, and Prarolo (2013a,b). …”

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confidence: 94%

Connecting to Power: Political Connections, Innovation, and Firm Dynamics

Akcigit

Baslandze

Lotti

2023

ECTA

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How do political connections affect firm dynamics, innovation, and creative destruction? We extend a Schumpeterian growth model with political connections that help firms ease bureaucratic and regulatory burden. The model highlights how political connections influence an economy's business dynamism and innovation, and generates a number of implications guiding our empirical analysis. We construct a new large‐scale data set for the period 1993–2014, on the universe of firms, workers, and politicians, complemented with corporate financial statements, patent data, and election data, so as to define connected firms as those employing local politicians. We identify a leadership paradox: market leaders are much more likely to be politically connected, but much less likely to innovate. Political connections relate to a higher rate of survival, as well as growth in employment and revenues, but not in productivity—a result that we also confirm using the regression discontinuity design. At the aggregate level, gains from political connections do not offset losses stemming from lower reallocation and growth.

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confidence: 94%

Connecting to Power: Political Connections, Innovation, and Firm Dynamics

Akcigit

Baslandze

Lotti

2023

ECTA

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“…al. 2018 andBellettini et al 2013). With firms allocating funds to lobbying, their relative profitability may be affected and, as a consequence, so, too, the R&D decisions that drive the technological-knowledge change and bias, which ultimately have an impact on wage differentials between workers.…”

Section: Introductionmentioning

confidence: 99%

“…In what concerns the most important characteristics of lobbyists, the literature suggests that most lobbying activities are conducted by large firms with innovation capabilities. For instance, Bellettini et al (2013) argues that such firms resort to lobbying to obtain preferential treatments and create additional entry barriers for entrants. Figueiredo and Ritcher (2013) in a survey about the empirical regularities about lobbying state that "There is now overwhelming evidence to support a second general regularity in the data: corporations and trade associations comprise…”

Section: Introductionmentioning

confidence: 99%

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The effects of automation and lobbying in wage inequality: a directed technical change model with routine and non-routine tasks

Afonso

Lima²,

Sequeira³

2022

J Evol Econ

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We devise a Directed Technical Change (DTC) multisector Schumpeterian growth model in which both wage inequality and wage polarization are analysed. To that end, we introduced tasks in the model, some of which can be automated -replaced by robots or machines -, thus combining the DTC and task-based growth literature in an unified framework. This model produces positive relationships both (i) between the relative supply of high-skilled workers and the skill premium and (ii) between automation and wage polarization. Moreover, within the model, we analyse Lobbying as an activity that can affect the wage distribution and integrate it in the strategic interations between firms. We find that it can reduce the effects of automation on wage polarization, and through this channel possibly affecting the wage distribution without affecting the skill premium.

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Political network embeddedness and ecological innovation: Do absorptive capacity and dynamic capability have any influence?

Zhao,

Wang,

Arkorful

2024

Corp Soc Responsibility Env

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Ecological innovation is an important conduit to realizing economic and environmental benefits. As such, improving enterprise ecological innovation performance has recently gained prominence. In this vein, the interaction between internal and external driving factors is key to influencing ecological innovation performance. Although existing studies underscore network embedding as one of the important external driving factors, research is lacking on the influence of the interaction mechanism between political network embedding and internal driving factors on enterprise ecological innovation performance. Therefore, by engaging social network theory and social capital theory, this paper proposes a moderated‐mediation model, with absorptive capacity as the mediator and dynamic capability as the moderator for an empirical investigation. Analyzing 302 items of survey data, the current study discusses the influence mechanism of political network embeddedness on enterprise ecological innovation performance. Regression results confirmed no significant correlation between political network embeddedness depth and enterprise ecological innovation performance. However, political network embeddedness breadth and absorptive capacity positively affected enterprise ecological innovation performance. Absorptive capacity partially mediated the relationship between political network embeddedness breadth and enterprise ecological innovation performance. Dynamic capability also moderated the relationship between absorptive capacity and enterprise ecological innovation performance. The study results expanded the internal mechanism of the relationship between political network embeddedness and enterprise ecological innovation performance, corroborating the imperativeness of external political network resources and internal capital such as absorptive capacity and dynamic capability to improve enterprise ecological innovation performance.

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Persistence of Politicians and Firms' Innovation

Cited by 15 publications

References 42 publications

Connecting to Power: Political Connections, Innovation, and Firm Dynamics

Connecting to Power: Political Connections, Innovation, and Firm Dynamics

The effects of automation and lobbying in wage inequality: a directed technical change model with routine and non-routine tasks

Political network embeddedness and ecological innovation: Do absorptive capacity and dynamic capability have any influence?

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