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Browsing by Author "Chang, Hsiu-yun"

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    Do institutional investors still encourage patent-based innovation after the tech bubble period?
    (2019-03-01)
    Chang, Hsiu-yun
    ;
    Liang, Woan-lih
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    Wang, Yanzhi
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    資訊管理與財務金融系 註：原資管所+財金所
    ;
    Department of Information Management and Finance
    This paper reexamines the effect of institutional ownership on corporate patent-based innovation. Using an updated sample, we confirm that higher institutional ownership leads to more innovations, including more citations received by patents of a firm, and higher patent generality and originality. However, we find that the impact of institutional ownership on patent-based innovation greatly decreases after the tech bubble bursts and this lower support is driven by both transient and non-transient institutional investors. We do not find that institutional investors intentionally lower their support of patent-based innovation for improving this less efficient innovation. Our results support the contention that the exorbitant litigation cost of patents lowers the incentives for institutional investors to invest in patent-based innovation after 2000.