This study empirically examines whether managerial myopia leads to short-termism of innovation strategy using Korean firm and USPTO data covering 1980-2017. The main finding is that payout indicators, as the proxy variables for financialisation and managerial myopia, have a negative effect on innovation, quantitatively and qualitatively. Hence, managerial myopia and short-termism of innovation strategy are related. Further, estimation by the firm's size reveals that the hypothesis of managerial myopia leading to short-termism of innovation strategy is valid only for conglomerates.
Bibliographical notePublisher Copyright:
© 2020 The Author(s). Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.
- Innovation strategy
- Korean firms
- Managerial myopia
- Radical innovation
ASJC Scopus subject areas
- Economics and Econometrics