Using extensive hand‐collected data on granted patents, we examine the effect of institutional blockholder monitoring on corporate innovation in Korea. Specifically, we focus on the relation between institutional blockholding and firm innovation. We find that institutional blockholders positively influence firm innovation and that this positive effect is driven primarily by foreign institutional blockholders, particularly when they engage in passive monitoring. The Korean market features limited participation by shareholders and pressure‐sensitive domestic institutions. Thus, we demonstrate the importance of corporate governance for firm innovation in emerging markets, where corporate innovation is increasingly important for long‐term economic growth, competitiveness, and value creation.

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外国机构大股东何时才能在本地市场上被动地促进企业创新？来自韩国的证据

我们使用大量有关授权专利的手工收集数据，研究了机构大股东监控对韩国公司创新的影响。具体而言，我们专注于机构所有权与公司创新之间的关系。我们发现，机构大股东对公司创新产生积极影响，而这种积极影响主要是由外国机构大股东驱动的，尤其是当他们进行被动监管时。韩国市场的特点是股东和压力敏感的国内机构参与有限。因此，我们证明了公司治理对于新兴市场中公司创新的重要性，在新兴市场中，公司创新对于长期经济增长，竞争力和价值创造越来越重要。