On 1 June at 12:00 in room M303, there will be an OSA seminar by A-Sung Hong entitled:

"Innovation after Failure".

Abstract
Although innovation failures are inevitable when in pursuit of novel technologies, it remains unclear how an innovation failure affects a firm’s subsequent pursuit of innovation. In this paper, we theorize that when shareholders’ monitoring is low and thus failures, including the ones resulting from bad luck, are more likely to be attributed to poor managerial ability, managers are driven to increase innovation search upon failure to compensate for the observed low performance. By exploiting late simultaneous patent applications as statistically exogenous failures and constructing three comparable groups of firms, including firms with failure, success, and placebo, in the difference-in-differences framework, we find evidence consistent with our theory. Our finding makes contributions to the innovation and corporate governance literature.

Keywords: innovation, innovation failure, corporate governance, innovation search, simultaneous invention

Everyone is welcome!