Companies with more financial analysts produce more and better-quality patents

(Universidad Carlos III de Madrid) Long-term growth in profits depends significantly on firms' investment in innovation activities. However, firms may not invest in innovation in an optimal way. Some distortions arise because the decisions as to whether and how to invest in innovation are not only affected by their long-term expected benefits but also by other considerations.

from EurekAlert! - Social and Behavioral Science http://bit.ly/2X2W9oz