The effects of privatization on R&D investments and patent productivity

Arbeitspapier

Over the last two decades privatization programs in different countries radically reduced the role of the State as a key player in the economic arena. We use agency theory to discuss the theoretical relationship between changes in the firm's principal-agent structure following privatization, and incentives to invest in R&D and to patent. We compare the pre and post privatization R&D effort and patenting behavior of 35 companies that were fully or partially privatized in 9 European countries through public share offering between 1980 and 1997. Results show that, after controlling for inter-industry differences, privatization processes negatively affect different measures of R&D commitment. Moreover, the shift from public to private ownership leads to a significant increase in the quantity of patents granted and in their quality, measured by citations' intensity.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 64.2002

Classification and Topics

• Classification: Wirtschaft ; Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance ; Management of Technological Innovation and R&D
• Subject: Privatization ; R&D investments ; patents ; inventions ; Privatisierung ; Industrielle Forschung ; Patent ; Prinzipal-Agent-Theorie ; Innovation ; Eigentümerstruktur ; Schätzung ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Munari, Federico ; Sobrero, Maurizio
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/119668
• Last update: 10.03.2025, 11:45 AM CET