Chang H.-Y.Liang W.-L.Wang Y.2019-07-242019-07-24201909275398https://scholars.lib.ntu.edu.tw/handle/123456789/414857This paper reexamines the effect of institutional ownership on corporate patent-based innovation. Using an updated sample, we confirm that higher institutional ownership leads to more innovations, including more citations received by patents of a firm, and higher patent generality and originality. However, we find that the impact of institutional ownership on patent-based innovation greatly decreases after the tech bubble bursts and this lower support is driven by both transient and non-transient institutional investors. We do not find that institutional investors intentionally lower their support of patent-based innovation for improving this less efficient innovation. Our results support the contention that the exorbitant litigation cost of patents lowers the incentives for institutional investors to invest in patent-based innovation after 2000. ? 2019 Elsevier B.V.InnovationInstitutional ownershipPatentPatent cost[SDGs]SDG9journal article10.1016/j.jempfin.2019.02.0032-s2.0-85061959995https://www.scopus.com/inward/record.uri?eid=2-s2.0-85061959995&doi=10.1016%2fj.jempfin.2019.02.003&partnerID=40&md5=d02d53e2a5c5354f73d8cc1787145486