Abstract
We study the relationship between a CEO's individualistic cultural background and corporate innovation. Using hand-collected data on the birthplaces of U.S.-born CEOs, we present robust evidence demonstrating that CEOs born in frontier counties with a higher level of individualistic culture are associated with superior corporate innovation outcomes. Firms led by these CEOs exhibit higher levels of both quantity and quality in their innovation output, placing a greater emphasis on breakthrough innovation compared to firms led by CEOs born elsewhere. Furthermore, our findings are consistent with the notion that individualistic CEOs cultivate an innovation-oriented corporate culture and enhance human capital by attracting a greater inflow of inventors, thereby promoting corporate innovation.
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