Information ambiguity, patents and the market value of innovative assets

Katrin Hussinger and Sebastian Pacher

Research Policy, 2019, vol. 48, issue 3, 665-675

Abstract: Research and development (R&D) is often essential for firms’ profitability and growth. At the same time, R&D is long-term and risky. We show that innovation activities lead to information ambiguity about the future value of firms’ assets. This effect appears to be more pronounced for small and less reputed firms. Information ambiguity further lowers firms’ market value and, in particular, the market value of innovative assets. We further show that high quality patents mitigate the negative effect of information ambiguity to some extent.

Keywords: R&D; Patents; Information ambiguity; Market value (search for similar items in EconPapers)
JEL-codes: D81 G10 G14 O34 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Working Paper: Information Ambiguity, Patents and the Market Value of Innovative Assets (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:48:y:2019:i:3:p:665-675

DOI: 10.1016/j.respol.2018.10.022

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