Market Valuation of Innovation-Related Intangibles: The Case of Polish Biotechnology Firms

Aneta Zakrzewska () and Tomasz Kijek ()
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Aneta Zakrzewska: University of Life Sciences in Lublin
Tomasz Kijek: University of Life Sciences in Lublin

A chapter in The Essence and Measurement of Organizational Efficiency, 2016, pp 327-337 from Springer

Abstract: Abstract Innovation-related intangibles allow a firm to create and commercialize new knowledge. Intangible assets necessary for innovation are key drivers of a firm’s performance and growth in knowledge intensive industries such as biotechnology which is under high pressure to produce new commercial products and processes. Nevertheless, numerous biotechnology firms fail in their attempts to bring on innovations, since the research and development activities are considered to be high-risky in this sector. The aim of this paper is to conduct an analysis of the relationship between investments in innovation-related intangibles, i.e. R&D and patents, and a biotechnology firm’s market value. A sample consists of ten biotech firms listed on the New Connect market. This study utilizes the panel dataset over a 3-year period to run empirical analyses using a fixed effects model. The main findings of the research reveal that there is a non-linear effect of patents on the market value in the sample firms. Surprisingly, R&D expenditures appear to have an insignificant impact on the market value.

Keywords: Innovation-related intangibles; R&D expenditures; Patents; Market valuation; Biotechnology firm (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-319-21139-8_20

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DOI: 10.1007/978-3-319-21139-8_20

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