We examine the impact of CEO marital status on firm innovative efficiency. We find that firms led by married CEOs produce 8% more patents and citations per unit of investment and generate more explorative patents. Married CEOs create a culture of tolerance among their employees that is conducive to risk taking, and their firms produce more efficient innovation (1) in regions that value social capital and (2) in firms that value favorable employee treatment. We find that the tolerant culture of married CEO firms produces more efficient innovation when occurring in tandem with mechanisms facilitating a long‐term strategic orientation.
Despite accumulated findings on the effects of agglomeration on productivity of manufacturing industries in Korea, little is known about the determinants of agglomeration. Employing an approach similar to Rosenthal and Strange (2001) [Rosenthal, S and W Strange (2001). The determinants of agglomeration. Journal of Urban Economics, 50(2), 191–229.], but using a different agglomeration index, this study examines whether the three microfoundations of agglomeration economies are important to the geographical concentration of Korean manufacturing industries. While estimation results generally confirm that labor market pooling, input sharing and knowledge spillovers contribute to agglomeration, we found some differences with the previous literature. First, non-manufactured inputs are more influential on agglomeration than manufactured inputs. Secondly, aggregate innovation activities, rather than their share of shipments, are a better measure of knowledge spillovers to explain agglomeration. Thirdly, agglomeration of newly established firms is also influenced by the Marshallian externalities with labor market pooling having a stronger and consistent effect. These results are robust to instrumental variables estimation to control for endogeneity related to knowledge spillovers and labor market pooling.
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