Corporate Innovation Research Articles

Antiviral Efficacy Testing of a Rechargeable Textile.

In light of the COVID-19 (Coronovirus Disease 2019) pandemic, the use of personal protective equipment has become essential to reduce viral transmission and maintain public health. Viruses, particularly human coronavirus and influenza, pose significant challenges because of their various transmission routes. UMF Corporation's innovation, Micrillon, aims to address these challenges by creating durable, antiviral technology for textiles without harmful chemicals, reducing viral transmission risks. The study followed ISO Standard 18184:2019, testing Micrillon textiles against Human Coronavirus OC43 and H1N1 Influenza A virus using MDCK and HCT-8 cell lines. Cell propagation, viral application, TCID50 (Median Tissue Culture Infectious Dose) testing, and maintenance protocols were rigorously implemented to assess antiviral efficacy. Micrillon gloves, fabrics, and fibers exhibited high antiviral efficacy against both viruses across various contact times. Gloves demonstrated exceptional antiviral activity against H1N1 (99.88%) and OC43 (99.67%) at 120 minutes. Rolled fabrics showed strong efficacy against H1N1 (99.42% at 30 minutes) and OC43 (>97%) at all time points. Bundled fibers displayed substantial efficacy against H1N1 (99.17% at 120 minutes) and OC43 (>98%) at all time points. The study demonstrates that Micrillon technology effectively inhibits viral activity, particularly in gloves, fabrics, and fibers. The innovation not only shows high antiviral efficacy against both Human Coronavirus and Influenza but also promises a reusable, sustainable solution, mitigating environmental impact and reducing the use of harmful chemicals in personal protective equipment. The technology holds promise for widespread use in health care and hospitality, offering a layer of protection while being environmentally conscious. Further development of such technologies can significantly reduce infection risks while minimizing environmental harm.

Making digital technology innovation happen: The role of the CEO's information technology backgrounds

Chief executive officers (CEOs) are the leaders of corporate innovation, but little is known about which types of CEOs are more conducive to digital technology innovation. Based on Chinese listed manufacturing companies from 2013 to 2020, we examine the effect of the information technology (IT) background of CEOs on digital technological innovation. The results show that CEOs' IT backgrounds significantly promote digital technology innovation. Curbing managerial myopia is the mechanism involved while strengthening digital sensemaking does not exist. Heterogeneity analysis reveals that the facilitating role of CEOs' IT background is more pronounced when their power is more extensive, the company is nonstate-owned, mature, and large, and the region is highly marketized. Our findings contribute to the literature on the impact of executive characteristics on innovation and provide a reference for companies to promote digital technology innovation through the employment of specific CEOs.

Revisiting the relationship between ESG, institutional ownership, and corporate innovation: An efficiency perspective

AbstractThis paper investigates how environmental, social, and governance (ESG) efficiency impacts corporate innovation, highlighting its role as a crucial indicator of resource utilization within firms. Analyzing data from A‐share listed companies in China between 2009 and 2021, we find that ESG efficiency levels are positively correlated with corporate innovation outputs. This indicates that higher ESG efficiency contributes to greater innovation. Our result also reveals that the relationship between ESG efficiency and corporate innovation is moderated by the firm's ownership structure. Specifically, the negative moderating effects of ownership are more pronounced in regions with lower economic development or stringent environmental regulations. Technology‐based firms are particularly affected, exhibiting greater vulnerability to these negative effects. These findings confirm that ESG efficiency is a significant mechanism linking ESG practices to enhanced innovation capabilities. By exploring both the efficiency aspects of ESG performance and the institutional factors influencing ESG‐innovation dynamics, our study makes a notable contribution to the literature, offering new insights into how effective ESG practices can strategically drive innovation within firms.

Research on the Driving Effect of Smart City Construction on Regional Economic Development

As a new model of modern urban development, smart cities are promoting the sustainable development of regional economies through the deep integration of information technology and urban construction. This study, titled "Research on the Driving Effect of Smart City Construction on Regional Economic Development," systematically analyzes the theoretical foundation, current implementation status, and impact mechanisms of smart city construction on regional economic development. By comparing successful cases domestically and internationally, the study reveals the specific effects of smart city construction on optimizing resource allocation, upgrading industrial structures, and driving innovation. Using econometric models to analyze empirical data on smart city construction, the results indicate that smart city construction significantly promotes the coordinated development and competitiveness of regional economies. The study concludes with policy recommendations to further smart city construction and regional economic development, including strengthening government guidance, promoting corporate innovation, and optimizing public services, providing scientific guidance and references for smart city construction. The findings not only enrich the theoretical research in the fields of smart city and regional economic development but also offer valuable insights for practical policy-making.

Digital transformation as a catalyst for green innovation: An Examination of high-tech enterprises in China's Yangtze River Delta

Green innovation represents a foundational strategy for companies aiming for sustainable and superior growth. In the digital economy landscape, rapid advancements in digital technologies provide enterprises with renewed momentum for progression. Nevertheless, there is scant empirical evidence supporting its efficacy in enhancing environmentally responsible corporate innovation. In the present study, utilising the resource-based view, data were gathered from 571 high-tech firms in China's Yangtze River Delta via surveys. Through hierarchical regression analysis, the interaction between digital transformation and green innovation was examined, taking into account the moderating effect of market-driven environmental pressures. The results indicate that digital transformation substantially promotes green innovation, and this relationship is further positively affected by the presence of market-driven environmental pressures. The present research contributes to the enhancement of green innovation theories and broadens the scope of digitalization research, providing valuable insights for advancing a green, low-carbon circular economy in the digital context.

The impact mechanism of enterprise financialization on firm innovation

Financial market development provided enterprises with more financing options, which affected their innovation activities. This study is based on 1,274 manufacturing companies. We found a significant inverted U-shaped relationship between enterprise financialization and ambidextrous innovation, and financing constraints can negatively regulate this relationship. The inverted U-shaped impact was more significant in enterprises with large-scale financial backgrounds and low innovation willingness. This study provides targeted guidance for improving corporate innovation.

Exploring the Relationship between Market Expansion and Corporate Innovation: The Mediating Role of Corporate Investment

This research delves into the dynamic interplay between market expansion and corporate innovation, underscoring the critical mediating role of corporate investments. In the backdrop of globalization and informatization, we explore how expanding into new markets drives firms to innovate, enhancing their competitive edge and market reach. Utilizing a robust dataset from Wharton Research Data Services encompassing 3838 North American companies from 2013 to 2023, we employ quantitative analysis and empirical methods to dissect these relationships. Our findings reveal that while market expansion directly necessitates and benefits from innovation, corporate investments in R&D significantly bolster this process by efficiently allocating resources to foster innovation and market penetration. Moreover, the research examines various factors such as corporate governance, financial health, and external market conditions that influence these dynamics, offering a comprehensive understanding of the strategies that companies can employ to sustain growth and innovation in a competitive landscape.

XAI in geographic analysis of innovation: Evaluating proximity factors in the innovation networks of Chinese technology companies through web-based data

This research explores the nonlinear interactions among multidimensional proximities, including geographical, cognitive, organizational, institutional, social, and technological aspects, and their impact on innovation within networks of over three million technology firms in China. Utilizing an innovative combination of web-based hyperlink and textual data analysis, supplemented by patent information, we delve into how these proximity dimensions influence corporate innovation capabilities. Our methodology integrates text-based deep learning techniques and employs the XGBoost model along with the SHapley Additive exPlanations (SHAP) algorithm and partial dependence plots to uncover the nuanced effects of proximity on innovation. The findings reveal that while geographical distance often correlates with larger cognitive and organizational proximities, underdeveloped regions exhibit stronger technological, institutional, and social proximities compared to their developed counterparts. The study further identifies social structure and technological differences as pivotal factors impacting collaborative innovation, with both positive and negative effects fluctuating alongside changes in proximity dimensions. Notably, we uncover that geographical proximity has a pronounced boundary effect on innovation, highlighting the critical role of spatial considerations in the digital age of innovation networks. This research contributes to the understanding of urban innovation dynamics and offers valuable insights for policymakers and urban planners aiming to foster innovation ecosystems.

Do anti-corruption efforts improve corporate innovation? Evidence from China

ABSTRACT This article examines the effects of anti-corruption efforts on firm innovation in China. Based on the number of invention patent applications filed by firms, we find that firms located in areas with intense anti-corruption efforts are more innovative. We control for a broad set of firm and province characteristics, including industry-year fixed effects, and demonstrate the robustness of the results using an instrumental variable analysis, alternative proxies for anti-corruption intensity and innovation and a fixed-effect Poisson regression model. A heterogeneity analysis shows that the innovation-enhancing effects of anti-corruption efforts on the likelihood to apply for invention patents is greater for young companies and those without political connections, while no significant difference when conditional on having invention patent applications. Moreover, anti-corruption efforts have no significantly different effects between state-owned and private enterprises. Further analysis shows that anti-corruption efforts significantly increase investments in research and development and innovation efficiency, leading to enhanced productivity and firm growth in the following years.

Government procurement and corporate investment efficiency: Evidence from China

This study investigates the impact of government procurement on the microeconomic landscape, particularly focusing on investment decisions and efficiency within corporations. Utilizing a dataset spanning 2015 to 2021 from A-share listed companies in China, the study examines how government contracts, as reported by the China Government Procurement website, influence corporate investment strategies. The analysis reveals that government procurement significantly enhances investment efficiency and mitigates common corporate investment deficiencies. These findings are robust, confirmed through instrumental variable techniques and validation procedures. Furthermore, the study explores the underlying mechanisms, suggesting that government procurement facilitates corporate financial fluidity and reduces environmental unpredictability. The impact is notably more pronounced in private sector entities, high-tech industries, and economically advanced regions in eastern China. This research provides empirical evidence of government procurement's efficacy as an economic instrument, highlighting its role in promoting corporate fiscal prudence. However, the study acknowledges limitations, such as potential variability in procurement practices across different regions and industries, which may affect the generalizability of the findings. Future research could explore the long-term effects of government procurement on corporate innovation and broader economic outcomes.

ESG performance, corporate innovation and downside risk: empirical evidence from China

PurposeThis study mainly explores how ESG performance (ESG stands for Environment, Social, and Governance) affects corporate downside risk through innovation input and innovation output, thereby promoting sustainable development of enterprises.Design/methodology/approachUsing Chinese A-share listed companies from 2014 to 2022 as research samples, a stepwise regression method is used to empirically test the impact of ESG performance on corporate innovation and downside risk by constructing multiple multivariate primary regression models.FindingsESG performance is beneficial for obtaining external resources and alleviating principal-agent problems. It can promote enterprises to increase innovation input and improve innovation output, thereby enhancing their core competitiveness, and suppressing their downside risk. This inhibitory effect is more significant in non-state-owned enterprises, non-high-tech enterprises, and enterprises where the chairman and the general manager are not combined in one. Further additional analysis has found that equity concentration weakens the inhibitory effect of ESG performance on corporate downside risk, equity balance strengthens the inhibitory effect of ESG performance on corporate downside risk, indicating that a mutually restrictive equity structure is conducive to promoting enterprises to actively fulfill ESG responsibility, thereby improving corporate innovation level and resolving their downside risk.Practical implicationsEnterprise managers, policy makers, and other practitioners can clearly see the benefits of implementing ESG measures, further strengthen their confidence in sustainable development, actively apply ESG concepts to the entire production and operation process of enterprises, increase attention and implementation of ESG elements, and promote the healthy and vigorous development of enterprises and macroeconomics.Originality/valueThe research conclusions reveal the inherent mechanism by which ESG performance empowers enterprises to improve their innovation level and reverse their performance decline, effectively expanding the theoretical achievements of ESG performance in enterprise innovation and risk management.

Revealing academic networks’ impact: driving innovation in Chinese high-tech enterprises

ABSTRACT Innovation is a critical aspect in China’s development as a great modern socialist country and in realizing its second-century goals. As key decision-makers in enterprises, the academic network resources carried by senior executives are seldom noticed. This study is going to explore whether senior executives’ academic network relationships (i.e. senior executives are or were employed by universities or research institutions) will spur corporate innovation performance. Drawing on panel data from Chinese A-share high-tech listed companies from 2014 to 2021, the study examines this relationship through multiple linear regression analysis and investigates the mediating role of R&D manipulation in this connection. The results of the study show that the more academic network relationships embedded in senior executives, the better the high-tech firms’ innovation performance. Additionally, R&D manipulation serves as an intermediary factor between senior executives’ academic network relationships and corporate innovation performance. Furthermore, when these individuals hold key positions and have a higher level of academic background, the facilitating effect of senior executives’ academic network relationships is more pronounced. This study broadens the application scope of social network theory and provides valuable insights for high-tech companies aiming to augment their knowledge-based innovation performance and refine their managerial recruitment strategies.

Innovation's influence on working capital management and profitability: A Chinese high‐tech manufacturing perspective

AbstractThis study investigates the role of corporate innovation in moderating the impact of working capital management on profitability for a Chinese high‐tech manufacturing industry. Using a two‐way fixed effect model and subgroup analysis, we found that net working capital (NWC) negatively impacted corporate profitability, while corporate innovation magnified the inverse association between the NWC and profitability. This moderating effect was stronger in non‐state‐owned enterprises (SOEs) than in SOEs, and different company sizes exhibited varying effects. This study enhances our understanding of the role of corporate innovation financial management and provides valuable insights for innovation research in emerging economies.

Air pollution and firm performance: the role of innovation and happiness

Purpose The detrimental effects of air pollution on the continuity of corporations attract more and more attention in the economic and financial studies. Prior literature investigates the impact of air pollution on corporate financial performance. This study aims to extend this research area by exploring the role of corporate innovation and happiness as factors that mitigate the adverse effects of air pollution and moderate the relationship between air pollution and financial performance. Design/methodology/approach This study uses two-step system generalized method of moments models to analyze the data of 200 firms listed on Istanbul Stock Exchange over the period 2009–2022. Findings The results show that firms located in regions with higher air pollution are more likely to invest in innovation. In addition, firms that are more exposed to air pollution and have investments in research and development (R&D) have less ability to improve their financial performance compared to firms that have no investments in R&D. In a similar vein, although R&D has positive effect on financial performance, this effect diminishes in the presence of higher air pollution. The results also show that happiness has no significant moderating effect on the relationship between air pollution and financial performance. Practical implications The findings of this study related to the role of corporate innovation in determining the effect of air pollution on financial performance indicate that the costs of investment in R&D weaken the firm’s ability to mitigate the adverse impact of air pollution on financial performance, which provides important signals to policymakers to concentrate more on supporting investment in corporate innovation by providing the necessary facilities for firms to improve their innovative performance and decrease the costs of investment in innovation. Originality/value To the author’s knowledge, this research is the first to explore the influence of happiness on the air pollution–financial performance relationship. In addition, this study differs from most prior ones by examining how responding to air pollution through investment in innovation can moderate the association between air pollution and financial performance.

The impact of SRDI policy for SMEs on corporate innovation under the COVID-19: evidence from China

ABSTRACT This study focuses on small and medium-sized enterprises (SMEs) in China, and examines whether and how the SRDI (Specialized, Refinement, Differential and Innovation) policy support impacts SMEs’ innovation under the COVID-19. We find that the R&D investment and innovation outputs in SMEs supported by the SRDI policy gets significantly increased, which results from the increase in government subsidies and the implementation of digital transformation. Furthermore, the positive impact of the policy on SMEs’ innovation is more significant after the outbreak of the COVID-19. It shows that resource support from government and digital transformation can help reduce the external adverse impact of the COVID-19 on SMEs’ innovation and enhance the risk-taking and sustainable development capabilities of SMEs when the Black Swan incident occurs.

CAN ESG PERFORMANCE DRIVE FIRM INNOVATION? THE MEDIATING ROLE OF AI ADOPTION AND DIGITAL TRANSFORMATION — EVIDENCE FROM CHINA

The effectiveness of Environmental, Social, and Governance (ESG) on corporate performance is an area of growing interest with significant practical implications. However, the role of ESG in fostering corporate innovation has received limited attention, and the mechanisms through which ESG factors influence innovation performance remain inadequately understood. This paper empirically investigates the impact and mechanisms of ESG performance on corporate innovation capabilities using a sample of Chinese A-share listed companies from 2010 to 2021. The results indicate that ESG performance significantly enhances corporate innovation capacity, mediated by the degree of artificial intelligence (AI) adoption and digital transformation. By employing the concept of organisational innovation, this study elucidates the mechanisms of ESG factors on innovation performance, addressing a significant gap in the existing research. The findings offer valuable insights for enterprises aiming to improve their competitive advantage and provide a crucial foundation for policymakers seeking to enhance corporate innovation through targeted reforms.

Deciphering AI’s Role in Corporate Innovation: A Study of AI Resources, Capability and Performance

Deciphering AI’s Role in Corporate Innovation: A Study of AI Resources, Capability and Performance

Ideology and Innovation: Decoding the Impact of CEO’s Political Ideology on Corporate Innovation

Ideology and Innovation: Decoding the Impact of CEO’s Political Ideology on Corporate Innovation

The impact of accounting conservatism on enterprise innovation investment

This study investigates the influence of accounting conservatism on corporate innovation investment through the lens of information asymmetry theory. While existing literature acknowledges the importance of accounting conservatism in corporate decision-making, there remains a gap in understanding how it specifically affects innovation investment, particularly in varied market environments and regulatory contexts. Specifically, current research often overlooks the heterogeneity of the impact of accounting conservatism on innovation investment under different market environments and regulatory frameworks. Additionally, there is a lack of specialized studies on the unique group of Chinese listed companies. This study fills this gap by empirically analyzing data from Chinese A-share listed companies, revealing a negative correlation between accounting conservatism and corporate innovation investment. Through empirical analysis of the financial reports and research and development (R&D) investment data of Chinese A-share listed companies from 2015 to 2022, this study finds a significant negative correlation between accounting conservatism and corporate innovation investment. Specifically, as accounting conservatism increases, corporate investment in R&D shows a decreasing trend, with a correlation coefficient of −0.364. This result is further validated by hierarchical regression analysis, where the regression coefficient is −0.465, indicating that accounting conservatism has a significant inhibitory effect on corporate innovation investment. This study is pioneering in its examination of the relationship between accounting conservatism and corporate innovation investment within the unique market environment of China, taking into account its distinctive characteristics and rapidly evolving technological industry background. To quantify accounting conservatism, the research employs the C-Score and G-Score models, while employing a range of indicators to measure corporate innovation investment, including proportions of R&D expenditure, number of new products or services, patent applications, total R&D personnel, capital investments, and progress in innovation projects. This comprehensive evaluation method enhances the accuracy and reliability of the study. The contribution of this study is significant as it offers a fresh perspective on how accounting conservatism influences corporate innovation investment. By providing empirical data support, it assists investors and corporate managers in making informed financial decisions and shaping innovation strategies. Through hierarchical regression analysis, the study substantiates the detrimental impact of accounting conservatism on corporate innovation investment, thereby establishing new theoretical and practical foundations for further research and application in related fields.

Impact of Foreign Policy on Domestic Corporate Innovation

Impact of Foreign Policy on Domestic Corporate Innovation