CEO Research Orientation, Corporate Context and Firm Innovation in the Biopharmaceutical Industry

This study develops and tests an integrative framework that explains when and why CEOs influence firm-level innovation. Empirical evidence from 109 CEOs of 87 U.S. based biopharmaceutical firms over the period 2001-2013 reveals that research orientated CEOs–those with an ability and motivation for science and technology–increase their firm’s innovation outcomes. The results indicate that the CEO-innovation relationship strongly depends on the extent of CEO discretion, which is shaped by the corporate context. A more detailed analysis shows that research oriented CEOs influence innovation through a R&D intensive strategy. These insights contribute to a more comprehensive understanding of CEO strategic choices and processes that result in firm-level innovation, and build a better understanding of why firms differ in their innovation performanc