Innovation and the Market Value of UK Firms, 1989-1995

23 Pages Posted: 5 Dec 2002

See all articles by Otto Toivanen

Otto Toivanen

Aalto University - Department of Economics; KU Leuven - Faculty of Business and Economics (FBE); CEPR; Helsinki Center of Economic Research (HECER)

P. Stoneman

University of Warwick Business School

Derek L. Bosworth

affiliation not provided to SSRN

Abstract

Using a new data set covering a sample of UK firms, 1989-1995, we study the impact of innovation and innovation assets on firm value. We find, for all reporting firms, that the flow of R&D and the use of new technologies (as measured by investment in tangible assets) have significant positive impacts on market value. A patent count variable is insignificant in cross section estimates, although significant but impacting negatively in panel estimates. A sample of firms reporting their R&D for the first time yields much larger estimates of the impact of R&D on market value than in the sample of all reporting firms.

Suggested Citation

Toivanen, Otto and Stoneman, P. and Bosworth, Derek L., Innovation and the Market Value of UK Firms, 1989-1995. Available at SSRN: https://ssrn.com/abstract=312815

Otto Toivanen (Contact Author)

Aalto University - Department of Economics ( email )

PO Box 1210
FI-00101 Helsinki
Finland

KU Leuven - Faculty of Business and Economics (FBE) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

CEPR ( email )

London
United Kingdom

Helsinki Center of Economic Research (HECER)

FI-00014 Helsinki
Finland

P. Stoneman

University of Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom
+44 24 7652 3038 (Phone)
+44 24 7652 3719 (Fax)

Derek L. Bosworth

affiliation not provided to SSRN

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