Does directors’ innovation experience promote firm innovation? Evidence from China

Abstract

ABSTRACT From the perspective of knowledge specificity and resource dependence, this study takes A-share listed companies in Shanghai and Shenzhen from 2014 to 2019 as samples to explore the impact of directors’ innovation experience on the innovation behaviour of listed companies. We find that directors’ rich innovation experience can not only increase their willingness to carry out innovation activities, but also strengthen their innovation ability and ultimately improve the firm’s innovation output. Moreover, the intensity of R&D investment and the one-time pass rate of firm patent applications play a partial mediating role between director innovation experience and a firm’s innovation output, respectively. This study provides references for firms to effectively use the external experience to promote innovation behaviour and complements existing research on firms’ knowledge acquisition paths. It also has practical significance for Chinese listed firms in carrying out innovation activities and strengthening innovation ability.