Technological Progress and Ownership Structure
SFI research paper, No 15-39
with Heng Geng and Sandy Lai


Innovation processes under patent protection generate hold-up problems if complementary patents are owned by different firms. We show that in line with Hart and Moore (1990), shareholder ownership overlap across firms with patent complementarities helps mitigate such hold-up problems and correlates significantly with higher patent investment and more patent success as measured by future citations. The positive innovation effect is strongest for concentrated overlapping ownership and for the cases when the overlapping shareholders are dedicated investors.

Additional Files

We provide a detailed Web Appendix with a list of the variable definitions, a model motivating the regression specifications and further robustness tests. For a previous version of the working paper see here.