“…Kong, Zhu, and Yang confirm the same results for China's energy sector and prove that the share of revenues spent for R&D is positively related to foreign ownership; however, unlike in previous paper, the presence of state ownership decreases the positive effect of foreign investors on innovation [Kong, Zhu, Yang, 2020]. Shin and Park analyze this effect by taking into account only institutional investors and find that foreign institutional investors are insignificant in modelling R&D intensity, if domestic institutional investors are included, meaning stand-alone significance only [Shin, Park, 2020]. Institutional investors are typically larger and thus invest in larger firms, seeking lower risk and stable returns, while private investors, such as Venture Capital firms, usually look for risky projects with higher returns.…”