Innovation α: What Do IP-Intensive Stock Price Indexes Tell Us about Innovation? | Zendy

Carol Corrado | Zendy; David Martín | Zendy; Qianfan Wu | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Innovation α: What Do IP-Intensive Stock Price Indexes Tell Us about Innovation?

Author(s) -

Carol Corrado,

David Martín,

Qianfan Wu

Publication year - 2020

Publication title -

aea papers and proceedings

Language(s) - English

Resource type - Journals

eISSN - 2574-0776

pISSN - 2574-0768

DOI - 10.1257/pandp.20201056

Subject(s) - market capitalization , stock (firearms) , intellectual property , initial public offering , capitalization , portfolio , financial economics , economics , stock price , business , book value , stock market , econometrics , monetary economics , finance , computer science , mechanical engineering , paleontology , linguistics , philosophy , earnings , horse , series (stratigraphy) , engineering , biology , operating system

Patents and other intellectual property (IP) have grown in relative importance in investments and market capitalizations of public firms (e.g., Corrado and Hulten 2010). This paper illustrates the construction of IP-intensive stock price indexes, focusing on a network analysis tool (Martin 2001, Winer et al. 2003, Luse and Martin 2014) that helps pinpoint firms that are most likely to generate value from their intangible assets. The analysis finds that (a) stock price indexes constructed using the tool yield above-average returns and (b) stock prices of US companies in two tech-driven sectors outperform non-US firms despite lower average patent portfolio valuations.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research