We examine the innovation efforts of family businesses in India, where such firms are widespread. Our findings indicate a positive association between family management control and R&D investments. At higher levels of equity ownership, family firms spend less on R&D, suggesting that entrenched owner-managers steer the business decisions to serve the family's idiosyncratic interests. In addition, we report that institutional ownership limits the negative influence of family equity ownership on R&D. Our additional analyses highlight the importance of family management control and the presence of institutional investors as an effective governance mechanism for promoting innovation efforts among the firms operating in high technology-intensive industries and those at the mature phase of their life cycle. Further, we find that market participants value family firms that engage in R&D as innovative efforts potentially renew their productive capabilities.