The relationship between a firm's patent quality and its market value - The case of US pharmaceutical industry

Technological Forecasting and Social Change

Volumn 77, Issue 1, 2010, Pages 20-33

  Chen, Yu Shan ^a   Chang, Ke Chiun ^a  

^a NATIONAL YUNLIN UNIVERSITY OF SCIENCE AND TECHNOLOGY   (Taiwan)

Author keywords

Market value; Patent analysis; Patent indicator; Patent quality

Indexed keywords

COMMERCE; FINANCE;

HERFINDAHL-HIRSCHMAN INDICES; MARKET VALUES; PATENT ANALYSIS; PATENT CITATION; PHARMACEUTICAL COMPANY; PHARMACEUTICAL INDUSTRY; QUALITY INDICATORS; TECHNOLOGICAL CAPABILITY;

PATENTS AND INVENTIONS;

COMPETITIVENESS; CORPORATE STRATEGY; INNOVATION; INTELLECTUAL PROPERTY RIGHTS; PHARMACEUTICAL INDUSTRY; TECHNOLOGICAL DEVELOPMENT;

NORTH AMERICA; UNITED STATES;

EID: 71849102328     PISSN: 00401625     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.techfore.2009.06.003     Document Type: Article

References (74)

1. Miguel A., and Araceli M. Empirical evidence of the effect of European accounting differences on the stock market valuation of earnings and book value. Eur. Account. Rev. 11 3 (2002) 573-599
2. Breitzman A., and Thomas P. Using patent citation analysis to target/value M&A candidates. Res. Technol. Manag. 45 5 (2002) 28
3. Feeny S., and Rogers M. Innovation and performance: benchmarking Australian firms. Aust. Econ. Rev. 36 3 (2003) 253-264
4. Shortridge R.T. Market valuation of successful versus non-successful R&D Efforts in the pharmaceutical industry. J. Bus. Finance Account. 31 9-10 (2004) 1301-1325
5. Griliches Z., Hall B.H., and Pakes A. R&D, patents, and market value revisited: is there a second (technological opportunity) factor?. Econ. Innov. New Technol. 1 3 (1991) 183-201
6. Trajtenberg M. A penny for your quotes: patent citations and the value of innovations. J. Econ. 21 1 (1990) 172-187
7. Ernst H. Patent information for strategic technology management. World Patent Inf. 25 3 (2003) 233-242
8. Grindley P.C., and Teece D.J. Managing intellectual capital: licensing and cross-licensing in semiconductors and electronics. Calif. Manage. Rev. 39 2 (1997) 8-41
9. Ernst H. Patent portfolios for strategic R&D planning. J. Eng. Technol. Manag. 15 4 (1998) 279-308
10. Ernst H. Evaluation of dynamic technological developments by means of patent data. In: Brockhoff K., Chakrabarti A.K., and Hauschildt J. (Eds). The Dynamics of Innovation: Strategic and Managerial Implications (1999), Springer Corporation, Berlin
11. Brockhoff K. Competitor technology intelligence in German companies. Ind. Mark. Manage. 20 2 (1991) 91-98
12. Brockhoff K.K., and Chakrabarti A.K. Take a proactive approach to negotiating your R&D budget. Res. Technol. Manag. 40 5 (1997) 37
13. Hicks D., Breitzman T., Olivastro D., and Hamilton K. The changing composition of innovative activity in the US - a portrait based on patent analysis. Res. Policy 30 4 (2001) 681-703
14. Breitzman A. Automated identification of technologically similar organizations. J. Am. Soc. Inf. Sci. Technol. 56 10 (2005) 1015-1023
15. Breitzman A.F., Thomas P., and Cheney M. Technological powerhouse or diluted competence: techniques for assessing mergers via patent analysis. R&D Management 32 1 (2002) 1-10
16. Kermani F., and Bonacossa P. Patent issues and future trends in drug development. J. Commer. Biotechnol. 9 4 (2003) 332
17. Mossinghoff G.J., and Bembelles T. The importance of intellectual property protection to the American research-intensive pharmaceutical industry. Columbia J. World Bus. 31 1 (1996) 38-48
18. Tancer R.S. Trends in worldwide intellectual property protection: the case of the pharmaceutical patent. Int. Exec. 37 2 (1995) 147-166
19. Ganguli P. Global pharmaceutical industry: intellectual wealth and asset protection. Int. J. Technol. Manag. 5 3/4 (2003) 248-313
20. Bhat V.N. Patent term extension strategies in the pharmaceutical industry. Pharmaceuticals policy & law 6 1 (2005) 109-122
21. Comanor W.S., and Scherer F.M. Patent statistics as a measure of technical change. J. Polit. Econ. 77 (1969) 392-397
22. Mansfield E. Patents and innovation: an empirical study. Manag. Sci. 32 (1986) 173-181
23. Bettis R.A., and Hitt M.A. The new competitive landscape. Strategic Management Journal 16 Special Summer Issue (1995) 7-19
24. Jensen E. Research expenditures and the discovery of new drugs. J. Ind. Econ. 36 (1987) 83-95
25. Grabowski H., and Vernon J. A new look at the returns and risks to pharmaceutical R&D. Manag. Sci. 36 (1990) 804-821
26. Lau R.S.M. How does research and development intensity affect business performance?. South Dakota Bus. Rev. 57 1 (1998) 1-4
27. Cardinal L.B., and Hatfield D.E. Internal knowledge generation: the research laboratory and innovative productivity in the pharmaceutical industry. J. Eng. Technol. Manag. 17 3-4 (2000) 247-271
28. Hirschey M., and Richardson V.J. Are scientific indicators of patent quality useful to investors?. J. Empir. Finance 11 1 (2004) 91-107
29. Griliches Z., Pakes A., and Hall B.H. The Value of Patents as Indicators of Inventive Activity (1987), Cambridge University Press, New York
30. Hall B.H., Jaffe A., and Trajtenberg M. Market value and patent citations. Rand J. Econ. 36 1 (2005) 16-38
31. Park G., and Park Y. On the measurement of patent stock as knowledge indicators. Technol. Forecast. Soc. Change 73 7 (2006) 793-812
32. Granstrand O., Patel P., and Pavitt K. Multitechnology corporations: why they have distributed rather than distinctive core competencies. Calif. Manage. Rev. 39 4 (1997) 8-25
33. Patel P., and Pavitt K. The technological competency of the world's largest firms: complex path-dependent, but not much variety. Res. Policy 6 2 (1997) 141-156
34. Hall B.H. A note on the bias in the Herfindahl based on count data. In: Jaffe A., and Trajtenberg M. (Eds). Patents, Citations, and Innovations (2002), MIT Press, Cambridge, MA
35. Duguet E., and MacGarvie M. How well do patent citations measure flows of technology? Evidence from French innovation survey. Econ. Innov. New Technol. 14 5 (2005) 375-393
36. Harhoff D., Narin F., Scherer F.M., and Vopel K. Citation frequency and the value of patented inventions. Rev. Econ. Stat. 81 3 (1999) 511-515
37. Hall B.H. The value of intangible corporate assets: an empirical study of the components of Tobin's Q (1993), University of California, Berkeley, Institute of Business and Economics Research
38. Hall B.H. The stock market's valuation of research and development investment during the 1980 s. Am. Econ. Rev. 83 2 (1993) 259-264
39. Yang C.-H., and Chen J.-R. Innovation and market value in newly-industrialized countries: the case of Taiwanese electronics firms. Asian Econ. J. 17 2 (2003) 205-220
40. Blundell R., Griffith R., and Reenen J.V. Market share, market value and innovation in a panel of British manufacturing firms. Rev. Econ. Stud. 66 (1999) 529-554
41. Aghion P., and Howitt P. Endogenous Growth Theory (1998), The MIT Press, Cambridge, MA
42. Hall B.H. Innovation and market value. In: Barrell R., Mason G., and Mahony M.O. (Eds). Productivity, Innovation and Economic Performance (2000), Cambridge University Press, Cambridge 177-198
43. Toivanen O., Stonemun P., and Bosworth D. Innovation and the market value of UK firms, 1989-1995. Oxford Bull. Econ. Stat. 64 1 (2002) 39-64
44. Lin B.W., Chen C.J., and Wu H.L. Patent portfolio diversity, technology strategy, and firm value. IEEE Trans. Eng. Manage. 53 1 (2006) 17-26
45. Parchomovsky G., and Wagner R.P. Patent portfolios. Univ. PA. Law Rev. 154 1 (2005) 1-77
46. Cockburn I., and Griliches Z. Industry effects and appropriability measures in the stock market's valuation of R&D and patents. Am. Econ. Rev. 78 2 (1988) 419-423
47. Megna P., and Klock M. The impact on intangible capital on Tobin's q in the semiconductor industry. Am. Econ. Rev. 83 2 (1993) 265-269
48. Gilbert T.R., and Newbery D. Preemptive patenting and the persistence of monopoly. Am. Econ. Rev. 72 3 (1982) 514-526
49. Griliches Z. R&D, Patents and Productivity (1984), University of Chicago Press, Chicago
50. Mairesse J., and Mohen P. R&D and Productivity Growth: What Have We Learned from Econometric Studies? Strasbourg (1995)
51. Jaffe A.B. Technological opportunity and spillovers of R&D: evidence from firms' patents, profits, and market values. Am. Econ. Rev. 76 6 (1986) 984-1001
52. Lanjouw J.O., and Schankerman M. Characteristics of patent litigation: a window on competition. RAND J. Econ. 32 1 (2001) 129-151
53. Hirschey M. Intangible capital aspects of advertising and R&D expenditures. J. Ind. Econ. 30 4 (1982) 375-390
54. Hirschey M., and Weygandt J.J. Amortization policy for advertising and research and development expenditures. J. Account. Res. 23 1 (1985) 326-335
55. Sougiannis T. The accounting based valuation of corporate R&D. Account. Rev. 69 1 (1994) 44-68
56. Lev B., and Sougiannis T. The capitalization, smortization, and value-relevance of R&D. J. Account. Econ. 21 1 (1996) 107-138
57. Griliches Z. Market value, R&D, and patents. Econ. Lett. 7 2 (1981) 183-187
58. Nagaoka S. Determinants of high-royalty contracts and the impact of stronger protection of intellectual property rights in Japan. J. Jpn. Int. Econ. 19 2 (2005) 233-254
59. Deng Z., Lev B., and Narin F. Science and technology as predictors of stock performance. Financ. Anal. J. 55 3 (1999) 20-32
60. Hirschey M., and Richardson V.J. Valuation effects of patent quality: a comparison for Japanese and U.S. firms. Pac.-Basin Finance J. 9 1 (2001) 65-82
61. Soete L., and Wyatt S. The use of foreign patenting as an internationally comparable science and technology output indicator. Scientometrics 5 1 (1983) 31-54
62. Chiu Y.-C., Lai H.-C., Lee T.-Y., and Liaw Y.-C. Technological diversification, complementary assets, and performance. Technol. Forecast. Soc. Change 75 6 (2008) 875-892
63. Leten B., Belderbos R., and Van Looy B. Technological diversification, coherence, and performance of firms. J. Prod. Innov. Manag. 24 6 (2007) 567-579
64. Hall M., and Tideman N. Measures of concentration. J. Am. Stat. Assoc. 62 (1967) 162-168
65. Tirole G. The Theory of Industrial Organization (1988), MIT Press, Cambridge, MA
66. Scherer F.M., and Ross D. Industrial Market Structure and Economic Performance (1990), Houghton Mifflin, Dallas, TX 73-79
67. Lee Y.G., Lee J.D., Song Y.I., and Lee S.J. An in-depth empirical analysis of patent citation counts using zero-inflated count data model: the case of KIST. Scientometrics 70 1 (2007) 27-39
68. Hu M.-C. Knowledge flows and innovation capability: the patenting trajectory of Taiwan's thin film transistor-liquid crystal display industry. Technol. Forecast. Soc. Change 75 9 (2008) 1423-1438
69. Ardishvili A., Cardozo S., Harmon S., and Vadakath S. Towards a Theory of New Venture Growth, Babson Entrepreneurship Research Conference, Babson College, MA (1998)
70. Hoy F., McDougall P.P., and Dsouza D.E. Strategies and environments of high growth firms. In: Sexton D.L., and Kasarda J.D. (Eds). The State of the Art of Entrepreneurship (1992), PWS-Kent Publishing, Boston
71. Greene W.H. Econometric Analysis (2003), Prentice-Hall, Upper Saddle River, NJ
72. Hsiao C. Analysis of Panel Data (1986), Cambridge University Press, Cambridge, UK
73. Maddala G.S. The Econometrics of Panel Data (1993), Edward Elgar Pub
74. Teece D.J. Profiting from technological innovation: implications for integration, collaboration, licensing and public policy. Res. Policy 15 6 (1986) 285-305