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

33 Citations (Scopus)

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
Pages (from-to)	7837-7860
Number of pages	24
Journal	Management Science
Volume	68
Issue number	11
Early online date	24 Jan 2022
DOIs	https://doi.org/10.1287/mnsc.2021.4224
Publication status	Published - Nov 2022

Bibliographical note

Funding Information:
Funding: 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 [Project T35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008].

Publisher Copyright:
© 2022 INFORMS.

Keywords

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

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1287/mnsc.2021.4224

Cite this

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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 = "Funding Information: Funding: 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 [Project T35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008]. Publisher Copyright: {\textcopyright} 2022 INFORMS.",

year = "2022",

month = nov,

doi = "10.1287/mnsc.2021.4224",

language = "English",

volume = "68",

pages = "7837--7860",

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AU - KONG, Dongmin

AU - LIN, Chen

AU - WEI, Lai

AU - ZHANG, Jian

N1 - Funding Information: Funding: 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 [Project T35/710/20R]. J. Zhang acknowledges financial support from the PRC Ministry of Education Youth Project for Humanities and Social Science Research [Grant 18XJC630008]. Publisher Copyright: © 2022 INFORMS.

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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

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SN - 0025-1909

VL - 68

SP - 7837

EP - 7860

JO - Management Science

JF - Management Science

IS - 11

ER -

Information Accessibility and Corporate Innovation

Abstract

Bibliographical note

Keywords

UN SDGs

Access to Document

Other files and links

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

UN SDGs

Access to Document

Other files and links

Projects

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

Cite this