Australian Innovation: Patent Database Construction and First Evidence

58 Pages Posted: 19 Jul 2021 Last revised: 15 Jun 2022

See all articles by Anna Bedford

Anna Bedford

University of Technology, Sydney - School of Accounting; Financial Research Network (FIRN)

Le Ma

University of Technology Sydney (UTS)

Nelson Ma

University of Technology Sydney (UTS) - UTS School of Accounting

Kristina Vojvoda

University of Technology Sydney (UTS)

Date Written: July 16, 2021

Abstract

The purpose of this paper is to describe the construction of the first Australian patent database for ASX-listed firms from 1990 to 2018 and provide a first look into their innovation activities. We explain the data sources, matching process, assumptions made and limitations of the database. We conduct validity tests on patent-based innovation proxies derived from the database to ascertain whether they capture innovation. We find a positive correlation between firms that have more patents, and investment in research and development, a known observable indicator of innovation. We also find that Australian firm performance has a positive elasticity to patents and that patent productivity is highest for poor-performing firms. Australia’s institutional setting is unique compared to the U.S setting, which to date has dominated the innovation literature. By making the database publicly available, we enable more innovation research to enhance our understanding of what motivates corporate innovation and improves its efficiency under different institutional contexts.

Keywords: Innovation, Australian patents, patent quality, patent database, validity tests

JEL Classification: O32, O35; O38

Suggested Citation

Bedford, Anna and Ma, Le and Ma, Nelson and Vojvoda, Kristina, Australian Innovation: Patent Database Construction and First Evidence (July 16, 2021). Pacific-Basin Finance Journal, Vol. 73, 2022, Available at SSRN: https://ssrn.com/abstract=3888049 or http://dx.doi.org/10.2139/ssrn.3888049

Anna Bedford (Contact Author)

University of Technology, Sydney - School of Accounting ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Le Ma

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

Nelson Ma

University of Technology Sydney (UTS) - UTS School of Accounting ( email )

P.O. Box 123
Broadway NSW 2007
Australia

Kristina Vojvoda

University of Technology Sydney (UTS) ( email )

15 Broadway, Ultimo
PO Box 123
Sydney, NSW 2007
Australia

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