Natural disasters and corporate innovation

Huong Le, Tung Nguyen, Andros Gregoriou, Jerome Healy

Research output: Contribution to journalArticlepeer-review


We examine how natural disasters affect corporate innovation. Using a comprehensive sample of U.S. firms and inventors, we find that natural disasters significantly drop innovation quantity and quality. The results are robust to include a broad set of regional characteristics, matching analysis, and alternative proxies for innovation. These effects persist for up to three years after the disaster. We also provide suggestive evidence that financial constraints due to natural disasters give firms less incentive to innovate. Further analysis shows that natural disasters have impacts on inventor relocation, innovation productivity, and innovation risk.
Original languageEnglish
Pages (from-to)144-172
Number of pages29
JournalEuropean Journal of Finance
Issue number2
Publication statusPublished - 27 Apr 2023


  • Uncertainty
  • natural disasters
  • corporate innovation;
  • employee safety


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