Corporate Philanthropy, Research Networks, and Collaborative Innovation. Issue 1 (20th August 2015)

• Record Type: Journal Article
• Authors: Bereskin, Frederick L.; Campbell, Terry L.; Hsu, Po‐Hsuan
• Is Part Of: Financial management. Volume 45:Issue 1(2016:Spring)
• Page Start: 175
• Page End: 206
• Publication Date: 2015-08-20
• Subjects: Corporations -- Finance -- Periodicals; 658.1505
• DOI: 10.1111/fima.12078
• Languages: English
• ISSNs: 0046-3892

Abstract

Abstract : Using a unique data set of corporate philanthropic activities, we find that direct giving activities are positively associated both with higher levels of innovation and innovation that is more influential, collaborative, and original. Our results suggest that much of what is ostensibly promoted as philanthropy actually reflects research‐related networking activities. The effect of direct giving on innovation is more pronounced in more opaque firms and more innovative and competitive industries. These findings provide evidence of the distinct motives by which firms choose between direct giving and foundation giving. Our study suggests that firms can use direct philanthropy to expand firm‐boundaries by developing innovation with research partners.