Do STEM-Educated Boards Contribute to Innovation Activities in Large Companies?

Corporate boards play an important role in formulating long-term strategies, implementing short-term objectives, and monitoring various strategic decisions made by executives. For companies with innovation as a strategic objective, it is important to identify a board that promotes and motivates innovation. Our study shows that corporate boards with more directors who have received a science, technology, engineering, and mathematics (STEM) education tend to promote more innovation activities, such as new technology invention, patent applications, and research and development investments. Our findings provide these innovative companies with useful information for identifying directors who may exercise a positive impact on corporate innovation.