Family Firms and Regional Innovation Activity: Evidence from the German Mittelstand
AbstractFamily firms are important not only for a region but for the economy as a whole. In particular, the long-term orientation and the local embeddedness of family firms suggest a positive effect on regional innovation activity. Yet, despite the widely acknowledged importance of family firms for the economy, little research exists on this issue. This paper analyses the effect of family firms on regional innovation. Using a dataset of 326 German regions, our regressions show that regions with a higher share of family firms also show higher levels of innovation activity, as measured by the number of successful patent applications. The implications of these findings for policy and research are discussed.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 28604.
Date of creation: 04 Feb 2011
Date of revision:
innovation; family firms; geography; Mittelstand; patents;
Find related papers by JEL classification:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-CSE-2011-02-12 (Economics of Strategic Management)
- NEP-ENT-2011-02-12 (Entrepreneurship)
- NEP-GEO-2011-02-12 (Economic Geography)
- NEP-INO-2011-02-12 (Innovation)
- NEP-IPR-2011-02-12 (Intellectual Property Rights)
- NEP-SBM-2011-02-12 (Small Business Management)
- NEP-URE-2011-02-12 (Urban & Real Estate Economics)
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