Re-examine the relationship between patents and Tobin’s q

Yu-Shan Chen () and Chun-Yu Shih
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Yu-Shan Chen: National Taipei University
Chun-Yu Shih: National Yunlin University of Science & Technology

Scientometrics, 2011, vol. 89, issue 3, No 4, 794 pages

Abstract: Abstract Since the relationship between patents and Tobin’s q is confusing, this paper utilizes panel threshold regression model to re-examine the relationship between patent counts/sales and Tobin’s q. This study finds out patent citations/sales has a single threshold effect on the relationship between patent counts/sales and Tobin’s q in the US pharmaceutical industry. The single threshold value of patent citations/sales is 328.81, and it divides the value of patent citations/sales into two regimes: the first regime (patent citations/sale ≦ 328.81) and the second regime (patent citations/sale > 328.81). The results indicate that patent counts/sales positively affect Tobin’s q in the two regimes. In addition, this study demonstrates that the extent of the positive effect of patent counts/sales on Tobin’s q is different. This study verifies that patent citations/sales moderates the relationship between patent counts/sales and Tobin’s q. Once patent citations/sales is below the threshold value, the extent of the positive relationship between patent counts/sales and Tobin’s q is the most. Therefore, this study finds out that the first regime is optimal.

Keywords: Patent analysis; Patent citation; Patent count; Tobin’s q; Panel threshold regression model (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s11192-011-0471-1

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