The impact of the ownership structure on the innovative activity of Russian companies

Вестник Санкт-Петербургского университета. Серия 5. Экономика. 2021. No. 4. P. 570–600.

Cherkasova V. A., Baron A.

Capital structure determines the a company's growth prospects by, affecting its investment activity. The article examines is aimed at research which what type of capital,  – foreign or state-owned, stimulates the a company’s innovative activity of the company that as measured through by its the number of patent applications. The study was carried out using data from on the basis of 238 public Russian companies in the period 2012-2020.

            The results of the study showed that the state and foreign investors influence innovation to different degrees: state capital positively affects the number of patent applications filed, while foreign capital does not. The impact of political connections and board structure on research and development was investigated. The political ties of the CEOs and the board chairs are expressed by the experience of working in the public service. The presence of such experience in the company's management increases the company's innovation activity. However, political connections are effective only in companies with state capital, or in specific industries.

            The company's state capital and political connections have a positive impact on the number of patent applications filed in the energy and industrial sectors. And tThe presence of political ties has a positive impact on the role of foreign capital in innovation. The share of foreign directors has a positive effect on patents. Also, It was also found that the presence of patents from previous years, as well as the age and size of the company, affects the receipt of patents in the future. The younger and larger the company, the more patent applications there will be.

Keywords: innovations, foreign investments, patents, political ties, government ownership