This paper provides novel empirical evidence on the private value of patents and R&D in a sample of firms from five European countries in the period 1985-2005. We explore the relationship between firm's Tobin's q, defined as the ratio of market value to the replacement value of firm's physical assets, and patents, accounting for the 'quality' of patents granted by the European Patent Office (EPO). We find that Tobin's q is positively and significantly associated with R&D and patent stocks. Given the increasing importance of software patents in the EPO, we tested for the impact of software patents on the market value of the firm and did not find any significant effect, in contrast to results for the United States.
Hall, B., Thoma, G., Torrisi, S. (2007). The Market Value of Patents and R&D: Evidence from European firms. In Academy of Management 2007 Annual Meeting: Doing Well by Doing Good, AOM 2007 (pp.1-6). Academy of Management [10.5465/ambpp.2007.26530853].
The Market Value of Patents and R&D: Evidence from European firms
Torrisi, S
2007
Abstract
This paper provides novel empirical evidence on the private value of patents and R&D in a sample of firms from five European countries in the period 1985-2005. We explore the relationship between firm's Tobin's q, defined as the ratio of market value to the replacement value of firm's physical assets, and patents, accounting for the 'quality' of patents granted by the European Patent Office (EPO). We find that Tobin's q is positively and significantly associated with R&D and patent stocks. Given the increasing importance of software patents in the EPO, we tested for the impact of software patents on the market value of the firm and did not find any significant effect, in contrast to results for the United States.
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
