Abstract
The relationship between patents, research and development (R and D), and market value in newly industrialized countries is examined for a panel data of Taiwanese electronics firms. Empirical results show that the market value of electronics firms is strongly related to patent count and R and D expenditure in Taiwan. Controlling potential heterogeneity of patents and allowing the value of Tobin's q to vary across firms, the estimated results are quite consistent, which is encouraging for Taiwan's government as it has implemented many policies encouraging firms to commit to R and D. In addition, the significant and positive impact of the sales growth rate might reflect the expectation feature of the stock market.
| Original language | English |
|---|---|
| Pages (from-to) | 205-220 |
| Number of pages | 16 |
| Journal | Asian Economic Journal |
| Volume | 17 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jun 2003 |
Keywords
- Market value
- Patent
- R and D