Do political connections matter for firm innovation? Evidence from emerging markets in Central Asia and Eastern Europe

We posit that the investments in political connections made by a firm in an emerging market will impact differently its propensity to introduce radical and incremental innovations. In addition, we argue that this effect will be moderated by alternate non-market firm strategies, such as bribery. Using a dataset of more than 9000 firms in 30 emerging economies from Eastern Europe and Central Asia we find that political connections increase the...