Do Personal Data Related Innovation Boost Firm Value?

Heli Koski

No 66, ETLA Brief from The Research Institute of the Finnish Economy

Abstract: Abstract Personal data is increasingly used in business value creation. Data from the years 2007–2014 suggest that firms’ personal data related innovations and knowledge stocks in technology domains of location-based services and artificial intelligence contributed substantially to firm value. The premiums gained from personal data related innovation were particularly significant for data giants holding knowledge stocks in the location-based service domain. Empirical findings indicate that a strong positive relationship between personal data related knowledge stocks of the location-based services domain and firm value relates primarily to investor attention intensified during periods of media hype. The data provide new insights into the market valuation of intangible assets: investors seem to overweight more salient right tails of firms’ knowledge stocks of emerging technologies while neglecting salient left tails.

Keywords: Firm value; data economy; personal data; innovation; investor attention; technology salience (search for similar items in EconPapers)
JEL-codes: D22 G41 L2 O3 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2018-05-25
New Economics Papers: this item is included in nep-bec, nep-big, nep-cse and nep-sbm
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