relationship between competition and innovation, Aghion, Dewatripont and Rey (1999) showed that this could be reversed if agency …-maximizing framework in which incumbent firms innovate to escape competition, there will be complementarity between increased product …) enhances the performance of old firms, which is suggestive of a role if agency effects and hence of policy substitutability and …

We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite … career-concern model allows for complementarity. Empirically, we reject substitution effects. Second, CEOs are less likely to …, policy changes and disaggregating by type of owner we find that the effect of institutions on innovation does not appear to …