Patent citation, R&D spillover, and Tobin's Q: Evidence from Taiwan semiconductor industry

Review of Quantitative Finance and Accounting

Volumn 26, Issue 1, 2006, Pages 67-84

  Chin, Chen Lung ^a   Lee, Picheng ^b   Chi, Hsin Yi ^c   Anandarajan, Asokan ^d  

^a NATIONAL CHENGCHI UNIVERSITY   (Taiwan)

^b PACE UNIVERSITY   (United States)

^c NATIONAL TAICHUNG UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

^d NEW JERSEY INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Patent citation; R D spillover; Tobin's Q

Indexed keywords

EID: 31444454573     PISSN: 0924865X     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11156-006-7034-1     Document Type: Article

References (71)

1. Aaker, D., Managing Brand Equity: Capitalizing on the Value of a Brand Name, Free Press, New York, 1991.
2. Balkin, D. B., G. D. Markman and L. R. Gomez-Mejia, "Is CEO Pay in High-Technology Firms Related to Innovation?" Academy of Management Journal 43, 1118-1129 (2000).
3. Belsley, D. A., E. Kuh and R. E. Welsch, Regression Diagnostics: Identifying Influenctial Data and Sources of Collinearity, Wiley, New York, 2000.
4. Bernstein, J. I. and M. I. Nadiri, "Interindustry, R&D Spillovers, Rates of Return, and Production in High-Tech Industries." American Economic Review 78, 429-434 (1988).
5. Bharadwaj, A. S., S. G. Bharadwaj and B. R. Konsynski, "Information Technology Effects on Firm Performance as Measured by Tobin's q." Management Science 45, 1008-1024 (1999).
6. Bosworth, D. L. and H. Mahdian, "Returns to Intellectual Property in the Pharmaceuticals Sector." Economique Appliquee 52, 69-93 (1999).
7. 2 in Accounting Research: Measuring Changes in Value Relevance Over the Last Four Decades." Journal of Accounting and Economics 28, 83-115 (1999).
8. Campbell, R. S. and A. L. Nieves, "Technology Indicators Based on Patent Data: The Case of Catalytic Converters: Phase 1 report: Design and Demonstration. Pacific Northwest Laboratories" Battelle (1979).
9. Carpenter, M. C. and F. Narin, "Validation Study: Patent Citations as Indicators of Science and Foreign Dependence." World Patent Information 5, 180-185 (1983).
10. Chang, P. L. and C. T. Tsai, "Evolution of Technology Development Strategies for Taiwan's Semiconductor Industry: Formation of research consortia." Industry and Innovation 7, 185-197 (2000).
11. Chen, S. H, "Global Production Networks and Information Technology: The case of Taiwan." Industry and Innovation 9, 249-265 (2002).
12. Chin, C. C., H. W. Lin and C. Y. Chi, "Patent and Value-relevance in Taiwan." Journal of Management Review 21, 175-197 (2004).
13. Cho, M. H., "Ownership Structure, Investment and the Corporate Value: an Empirical Analysis." Journal of Financial Economics 47, 103-121 (1998).
14. Chung, K.H. and S.W. Pruitt, "A Simple Approximation of Tobin's q." Financial Management 23, 70-74 (1994).
15. Cockburn, I. and Z. Griliches, "Industry Effects and Appropriability Measures in the Stockmarket's Valuation of R&D and Patents." American Economic Review 78, 419-423 (1988).
16. Cohen, W. M. and D. A. Levinthal, "Absorptive Capacity: A New Perspective on Learning and Innovation." Administrative Science Quarterly 35, 128-152 (1990).
17. Cohen, W. M. and D. A. Levinthal, "Innovation and Learning: the Two Faces of R&D." The Economic Journal 99, 569-596 (1989).
18. Connolly, R. A. and M. Hirschey, "Market Value and Patents: A Bayesian Approach." Economics Letters 27, 83-87 (1988).
19. Conover, W.J. and R. L. Iman, "Rank Transformations as a Bridge Between Parametric and Nonparametric Statistics." The American Statistician 35, 124-133 (1981).
20. De Bondt, R, "Spillovers and Innovative Activities." International Journal of Industrial Organization 15, 1-28 (1997).
21. De Carolis, D. M., "Competencies and Imitability in the Pharmaceutical Industry: An Analysis of Their Relationship with Firm Performance." Journal of Management 29, 27-50 (2003).
22. Doidge, C., G. A. Karolyi and R. M. Stulz, "Why are Foreign Firms Listed in U.S. Worth More?" Journal of Financial Economics 71, 205-238 (2004).
23. Electronic News, Electronics shipments growth 1999 & 2000, published on January 1st, 2000.
24. Francis, J. and K. Schipper, "Have Financial Statements Lost Their Relevance?" Journal of Accounting Research 37, 319-352 (1999).
25. Griffith, R., S. Redding and J. V. Reenen, "R&D and Absorptive Capacity: Theory and Empirical Evidence." Scandinavian Journal of Economics 105, 99-118 (2003).
26. Griliches, Z., "Patent Statistics as Economic Indicators: A Survey." Journal of Economic Literature 28, 1661-1707 (1990).
27. Griliches, Z., "Market Value, R&D and Patents." Economics letters 7, 183-187 (1981).
28. Gu, F. and B. Lev, "On the Relevance and Reliability of R&D." Working paper, University of Boston, Boston (2002).
29. Hall, B., A. Jaffe and M. Trajtenberg, "Market Value and Patent Citations: A First Look." Working paper, University of California, Berkeley (2001a).
30. Hall, B., "Innovation and Market Value." In Barrell, G. Mason and M. O' Mahoney (Eds.), Productivity, Innovation and Economic Performance. Cambridge UK: Cambridge University Press, 2000 pp. 177-198.
31. Hall, B., "The Stock Market Valuation of R&D Investment During the 1980s." American Economic Review 83, 259-264 (1993).
32. Hall, B., A. Jaffe and M. Trajtenberg, "The NBER Patent Citations Data File: Lessons, Insights and Methodlogical Tools." National Bureau of Economic Research, Working paper No. 3094 (2001b).
33. Hall, B. and R. H. Ziedonis, "The Patent Paradox Revisited: an Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995." RAND Journal of Economics 32, 101-128 (2001).
34. Harhoff, D., F. Narin, F. M. Scherer and K. Vopel, "Citation Frequency and the Value of Patented Innovation." Review of Economics and Statistics 81, 511-515 (1999).
35. Hirschey, M., V. J. Richardson and S. Scholz, "Value Relevance of Nonfinancial Information: The Case of Patent Data." Review of Quantitative Finance and Accounting 17, 223-226 (2001)
36. Hung, S. W. and C. Yang, 'The IC fables industry in Taiwan: Current Status and Future Challenges." Technology in Society 25, 385-402 (2003).
37. Jaffe, A. B., "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value." The American Economic Review 76, 984-1001 (1986).
38. Jaffe, A. B., M. Trajtenberg and M. S. Fogarty, "Knowledge Spillovers and Patent Citations: Evidence from a Survey of Inventors." American Economic Review 90, 215-218 (2000).
39. Jaffe, A. B., M. Trajtenberg and R. Henderson, "Geographic Localization and Knowledge Spillovers as Evidence by Patent Citations." Quarterly Journal of Economics 108, 577-598 (1993).
40. Jaffe, A. B. and M. Trajtenberg, "Flows of Knowledge from Universities and Federal labs: Modeling the Flow of Patent Citations over Time and Across Institutional and Geographic Boundaries." National Bureau of Economic Research, Working paper No. 5712 (1996).
41. Kallapur, S. and Y. S. Sabrina, "The Value Relevance and Reliability of Brand Assets Recognized by U.K. Firms." Accounting Review 79, 151-173 (2004).
42. Kennedy, P. A., Guide to Econometrics, MIT Press, Cambridge, MA: 1992.
43. Macher, J. T., D. C. Mowery and T. S. Simcoe, "E-Business and Disintegration of The Semiconductor Industry Value Chain." Industry and Innovation 9, 155-181 (2002).
44. Mathews, J. A., "A Silicon Valley of the East: Creating Taiwan's Semiconductor Industry." California Management Review 39, 26-54 (1997).
45. McConnell, J. and H. Servaes, "Additional Evidence on Equity Ownership and Corporate Value." Journal of Financial Economics 27, 595-613 (1900).
46. Mcmillan, G. S., A. Mauri and R.D. Halmilton, "The Impact of Publishing and Patenting Activities on New Product Development and Firm Performance: The Case of the US Pharmachutical Industry." International Journal of Innovation Management 7, 213-221 (2003).
47. Megna, P. and D. C. Mueller, "Profit rates and Intangible Capital." Review of Economics and Statististics 73, 632-642 (1991).
48. Megna, P. and M. Klock, 'The Impact of Intangible Capital on Tobin's q in the Semiconductor Industry." American Economic Review 83, 265-269 (1993).
49. Ministry of Economic Affairs. Report on Information Industry Research, http://mic.iii.org.tw/products/products4.asp. Industrial Technology Intelligence Services, Taipei, Taiwan, 2001.
50. Ministry of Economic Affairs. Semiconductor Industry Yearbook. Industrial Technology Intelligence Services, Taipei, Taiwan, 2003.
51. Morck, R. A. Shleifer and R.W. Vishny, "Management Ownership and Market Valuation: An Empirical Analysis." Journal of Financial Economics 20, 293-315 (1988).
52. Morck, R. and B. Yeung, "Why Investors Value Multinationality." Journal of Business, 64, 165-187 (1991).
53. Narin, F., M. Rose and D. Olivastro, "Patent Citation Analysis: New Validation Studies and Linkage Statistics." A. F. J. Van Raan (Ed.), In Handbook of Quantitative Studies of Science and Technology "North-Holland, Elsevier Science Publishers (1988).
54. Office of Technology Assessment and Forecast (OTAF). U.S. Department of Commerce, Patent and Trademark Office, Sixth Report. Washington, D.C., US Government Printing Office (1976).
55. Park, C. W., B. J. Jaworski and D. J. Macinnes, "Strategic Brand Concept-Image Management." Journal of Marketing 50, 135-145 (1986).
56. Pegels, C. C. and M.V. Thiramurthy, "The impact of Technology Strategy on Firm Performance." IEEE Transactions on Engineering Management 43, 246-249 (2000).
57. Pownall, G. and K. Schipper, "Implications of Accounting Research for the SEC's Consideration of International Accounting Standards for U.S. Securities Offerings.'Accounting Horizons 13, 259-280 (1999).
58. Romer, P., "Endogenous Technological Change." Journal of Political Economy 71, 71-102 (1990).
59. Seethamraju, C. and B. Lev, "The Value-Relevance of Trademarks." Working paper. New York University, New York, NY (2000).
60. Shane, H. and M. Klock, " The Relation Between Patent Citations and Tobin's Q in the Semiconductor Industry." Review of Quantitative Finance and Accounting 9, 131-146 (1997).
61. Simon, C. J. and M. W. Sullivan, "The Measurement and Determinants of Brand Equity : A Financial Approach." Marketing Science 12, 28-52 (1993).
62. Stoneman, P. and O. Toivanen, "Innovation and Market Value in the UK." Working paper, Warwick Business School, University of Warwick, Coventry (1997).
63. Tabak, F. and S. H. Barr, "Innovation Attributes and Category Membership: Explaining Intention to Adopt Technological Innovations in Strategic Decision Making Contexts." Journal of High Technology Management Research 9, 17-33 (1998).
64. Taiwan Semiconductor Industry Association. An Overview on Taiwan Semiconductor Industry. http://www.tsia.org.tw/tsia.En/industry/seasonreport. asp, 2000.
65. Tobin, J., "Monetary Policies and the Economy: The Transmission Mechanism." Southern Economic Journal 37, 421-431 (1978).
66. Toivanen, O., P. Stoneman and D. Bosworth, "Innovation and the Market Value of UK firms, 1989-1995." Oxford Bulletin of Economics and Statistics 64, 39-61 (2002).
67. Trajtenberg, M., "A Penny for Your Quotes: Patent Citation and the Value of Innovations." Rand Journal of Economics 21, 172-187 (1990).
68. Tung, A., "Taiwan's Semiconductor Industry: What the State Did and Did not." Review of Development Economics 5, 266-288 (2001).
69. Watanabe, C., Y. S. Tsuji and C. Griffy-Brown, "Patent Statistics: Deciphering a 'Real' versus a 'Pseudo' Proxy of Innovation." Technovation 21, 783-790 (2001).
70. White, H., "A Heteroscedasticity-Consistent Covariance Matrix Estimator and Direct Test for Heteroscedasticity," Econometrica 48, 817-838 (1980).
71. Wu, W. and B. Bjornson, "Value of Advertising by Food Manufactures as Investment in Intangible Capital." Agribusiness 12, 147-156 (1996).