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Innovation and the Market Value of UK Firms, 1989–1995 *
Author(s) -
Toivanen Otto,
Stoneman Paul,
Bosworth Derek
Publication year - 2002
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.00002
Subject(s) - value (mathematics) , economics , market value , econometrics , business , financial economics , statistics , mathematics , accounting
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 now 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 dine yields much larger estimates of the impact of R&D on market value than in the sample of all reporting firms. Copyright 2002 by Blackwell Publishing Ltd