Innovation and firm value: An investigation of the changing role of patents, 1985-2007
This paper examines how the relationship between firm value and patent-based indicators of inventive activity has changed over time. We use data from more than 33,000 mergers and acquisitions deals between 1985 and 2007, and distinguish between American (USPTO) and European (EPO) patents. Our results indicate that over time EPO patents have become the dominant indicator of innovative activity, while USPTO patents have no effect on firm value near the end of the sample period. The results are robust to controlling for citations and are especially strong for small firms, for firms operating in the drug and chemical industries, and when target and acquiring firms operate in different industries or countries. JEL classificationO31O32O16 © 2013 Elsevier B.V. All rights reserved.
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Related Subject Headings
- Science Studies
- 3801 Applied economics
- 3507 Strategy, management and organisational behaviour
- 1505 Marketing
- 1503 Business and Management
- 1402 Applied Economics
Citation
Published In
DOI
ISSN
Publication Date
Volume
Issue
Start / End Page
Related Subject Headings
- Science Studies
- 3801 Applied economics
- 3507 Strategy, management and organisational behaviour
- 1505 Marketing
- 1503 Business and Management
- 1402 Applied Economics