Converting technological inventions into new products: The role of CEO human capital

Despite technological inventions being a key input to new product development, companies often struggle with commercializing new technologies via the product development route. Drawing on a sample of publicly traded U.S. manufacturing companies that spans the period 1992-2013, our study shows that CEOs play a catalytic role in the technology conversion process, but this role is highly nuanced and depends on the characteristics (generalist vs. specialist) of their human capital. Specifically, generalist CEOs tend to be better at facilitating the conversion process in companies with more diverse and/or higher quality inventions. In contrast, specialist CEOs play a catalytic role in technology conversion when companies have less diverse and/or lower quality inventions. Hence, our paper offers a solution to the technology conversion problem that consists in aligning CEO human capital characteristics with the characteristics of the company's inventions portfolio.