Educate to innovate: STEM directors and corporate innovation

Document Type

Article

Abstract

Using a sample of 14,245 firm-year observations from 2,579 listed firms in the Chinese capital market, this study investigates whether board directors with an educational background in science, technology, engineering, and mathematics (STEM) are associated with greater corporate innovation. The results suggest that such directors have significant beneficial effects on corporate innovation activities. This study provides novel empirical evidence supporting resource dependence theory and extends the labor economics literature regarding the value of STEM graduates for corporate innovation. The findings have significant implications for policymakers and practitioners, showing that firms with a strategic focus on innovation may find it beneficial to appoint more directors with a background in STEM.

Publication Title

Journal of Business Research

Publication Date

1-2022

Volume

138

First Page

229

Last Page

238

ISSN

0148-2963

DOI

10.1016/j.jbusres.2021.09.022

Keywords

board of directors, corporate innovation, STEM, STEM directors

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