Innovation and the Market Value of UK Firms, 1989-1995
23 Pages Posted: 5 Dec 2002
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: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Bronwyn H. Hall and Raffaele Oriani
-
By Bronwyn H. Hall, Jacques Mairesse, ...
-
Profiting from Technological Innovation: The Effect of Competitor Patenting on Firm Value
-
An Extended Accelerator Model of R&D and Physical Investment
By Jacques Mairesse and Alan K. Siu
-
Organizational Choice in R&D Alliances: Knowledge Based and Transaction Cost Perspectives