Media, inventors, and corporate innovation

Abstract

We examine the impact of Sinclair Broadcast Group, the largest conservative media network in the US local TV markets, on corporate innovation following its staggered expansion across the country. We find a significant reduction in innovation output two to three years after Sinclair entry. As a larger proportion of inventors self-identify as left-leaning, we find that the effect runs through two mutually non-exclusive channels: the inventor productivity channel and the talent replacement channel. Inventors become less innovative when they stay in Sinclair-exposed firms, and firms face challenges replacing departed talent upon the local ideology shock induced by Sinclair.