Political connections can be a double-edged sword for innovation in emerging markets. While they provide companies with valuable resources and partnerships, the right kind of skilled talent is needed to take advantage of these benefits, according to a new study from the University of Surrey.
The study examined data from over 3,200 Chinese-listed businesses over a decade. Researchers looked at various factors, including:
- The CEO’s political connections (determined by previous government work experience).
- The business’ level of innovation (measured by the number of invention patent applications).
- The educational backgrounds of employees.
This comprehensive approach allowed Surrey’s researchers to analyse the complex relationship between political connections, talent, and innovation in emerging markets.
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