Information Accessibility and Corporate Innovation

Dongmin KONG, Chen LIN, Lai WEI, Jian ZHANG

Research output: Journal PublicationsJournal Article (refereed)peer-review

54 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 languageEnglish
Pages (from-to)7837-7860
Number of pages24
JournalManagement Science
Volume68
Issue number11
Early online date24 Jan 2022
DOIs
Publication statusPublished - 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

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