Information Accessibility and Corporate Innovation

Dongmin KONG; Chen LIN; Lai WEI; Jian ZHANG

doi:10.1287/mnsc.2021.4224

Information Accessibility and Corporate Innovation

Dongmin KONG, Chen LIN, Lai WEI, Jian ZHANG

FACULTY OF BUSINESS

Research output: Journal Publications › Journal Article (refereed) › peer-review

Abstract

This study identifies information accessibility as a determinant of corporate innovation. Using the sudden termination of Google’s search services in China, we find a persistently large negative effect on the intensity and quality of innovation among firms relying on foreign knowledge. The results are stronger for firms in industries dominated by foreign technology, in regions with local web filters, and for firms with fewer alternative sources of foreign information. We also find that the affected firms cite fewer foreign patents and their innovation efficiency declines after Google’s exit. Overall, the results are consistent with the view that access to information is an important driver of technological progress.

Original language	English
Number of pages	24
Journal	Management Science
DOIs	https://doi.org/10.1287/mnsc.2021.4224
Publication status	E-pub ahead of print - 24 Jan 2022

Bibliographical note

D. Kong acknowledges financial support from the National Natural Science Foundation of China [Grants 71802160, 71991473, and 71772178] and the Major Project of National Social Science Foundation of China [Grant 21ZDA010]. C. Lin acknowledges financial support from the National Natural Science Foundation of China [Grant 71790601]. L. Wei acknowledges financial support from the Research Grant Council of the Hong Kong Special Administrative Region, China [ProjectT35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008]

Keywords

information accessibility
technological innovation
information for innovation
corporate information environment
Google's exit

Access to Document

10.1287/mnsc.2021.4224

Cite this

@article{fa8e36c5258e4e54bf7288c5238682a5,

title = "Information Accessibility and Corporate Innovation",

abstract = "This study identifies information accessibility as a determinant of corporate innovation. Using the sudden termination of Google{\textquoteright}s search services in China, we find a persistently large negative effect on the intensity and quality of innovation among firms relying on foreign knowledge. The results are stronger for firms in industries dominated by foreign technology, in regions with local web filters, and for firms with fewer alternative sources of foreign information. We also find that the affected firms cite fewer foreign patents and their innovation efficiency declines after Google{\textquoteright}s exit. Overall, the results are consistent with the view that access to information is an important driver of technological progress.",

keywords = "information accessibility, technological innovation, information for innovation, corporate information environment, Google's exit",

author = "Dongmin KONG and Chen LIN and Lai WEI and Jian ZHANG",

note = "D. Kong acknowledges financial support from the National Natural Science Foundation of China [Grants 71802160, 71991473, and 71772178] and the Major Project of National Social Science Foundation of China [Grant 21ZDA010]. C. Lin acknowledges financial support from the National Natural Science Foundation of China [Grant 71790601]. L. Wei acknowledges financial support from the Research Grant Council of the Hong Kong Special Administrative Region, China [ProjectT35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008]",

year = "2022",

month = jan,

day = "24",

doi = "10.1287/mnsc.2021.4224",

language = "English",

journal = "Management Science",

issn = "0025-1909",

publisher = "INFORMS Institute for Operations Research and the Management Sciences",

}

TY - JOUR

T1 - Information Accessibility and Corporate Innovation

AU - KONG, Dongmin

AU - LIN, Chen

AU - WEI, Lai

AU - ZHANG, Jian

N1 - D. Kong acknowledges financial support from the National Natural Science Foundation of China [Grants 71802160, 71991473, and 71772178] and the Major Project of National Social Science Foundation of China [Grant 21ZDA010]. C. Lin acknowledges financial support from the National Natural Science Foundation of China [Grant 71790601]. L. Wei acknowledges financial support from the Research Grant Council of the Hong Kong Special Administrative Region, China [ProjectT35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008]

PY - 2022/1/24

Y1 - 2022/1/24

N2 - This study identifies information accessibility as a determinant of corporate innovation. Using the sudden termination of Google’s search services in China, we find a persistently large negative effect on the intensity and quality of innovation among firms relying on foreign knowledge. The results are stronger for firms in industries dominated by foreign technology, in regions with local web filters, and for firms with fewer alternative sources of foreign information. We also find that the affected firms cite fewer foreign patents and their innovation efficiency declines after Google’s exit. Overall, the results are consistent with the view that access to information is an important driver of technological progress.

AB - This study identifies information accessibility as a determinant of corporate innovation. Using the sudden termination of Google’s search services in China, we find a persistently large negative effect on the intensity and quality of innovation among firms relying on foreign knowledge. The results are stronger for firms in industries dominated by foreign technology, in regions with local web filters, and for firms with fewer alternative sources of foreign information. We also find that the affected firms cite fewer foreign patents and their innovation efficiency declines after Google’s exit. Overall, the results are consistent with the view that access to information is an important driver of technological progress.

KW - information accessibility

KW - technological innovation

KW - information for innovation

KW - corporate information environment

KW - Google's exit

UR - https://doi.org/10.1287/mnsc.2021.4224

U2 - 10.1287/mnsc.2021.4224

DO - 10.1287/mnsc.2021.4224

M3 - Journal Article (refereed)

JO - Management Science

JF - Management Science

SN - 0025-1909

ER -

Information Accessibility and Corporate Innovation

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Financial Technology, Stability, and Inclusion (金融科技、金融穩定和普惠金融) (LU Part)

Cite this

Information Accessibility and Corporate Innovation

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Projects

Financial Technology, Stability, and Inclusion (金融科技、金融穩定和普惠金融) (LU Part)

Cite this