Board of Director Composition, and Ownership and Their Relationship to Patents: An Empirical Study

Abstract

In this paper we examine the impact of board structure on patenting activity. In particular, we look at inside directors, board diversity, inside ownership, and board size. Board diversity was significantly and negatively related to patenting activity and inside ownership was marginally and negatively related to patenting activity. The research is relevant to current businesses by illustrating the potential dangers of board diversity and inside ownership on patenting activity.