EconPapers    
Economics at your fingertips  
 

The more you spend, the more you get? The effects of R&D and capital expenditures on the patenting activities of biotechnology firms

Roberta Piergiovanni () and Enrico Santarelli
Additional contact information
Roberta Piergiovanni: Istat-Sede per l’Emilia-Romagna

Scientometrics, 2013, vol. 94, issue 2, No 4, 497-521

Abstract: Abstract This paper provides evidence on the mechanisms influencing the patent output of a sample of small and large, entrepreneurial and established biotechnology firms from the input of indirect knowledge acquired from capital expenditures and direct knowledge from in-house R&D. Statistical models of counts are used to analyse the relationship between patent applications and R&D investment and capital expenditures. It focuses on biotechnology in the period 2002–2007 and is based on a unique data set drawn from various sources including the EU Industrial R&D Investment Scoreboard, the European Patent Office (EPO), the US Patent and Trademark Office, and the World Intellectual Property Organisation. The statistical models employed in the paper are Poisson distribution generalisations with the actual distribution of patent counts fitting the negative binomial distribution and gamma distribution very well. Findings support the idea that capital expenditures—taken as equivalent to technical change embodied in new machinery and capital equipment—may also play a crucial role in the development of new patentable items from scientific companies. For EPO patents, this role appears even more important than that played by R&D investment. The overall picture emerging from our analysis of the determinants of patenting in biotechnology is that the innovation process involves a well balanced combination of inputs from both R&D and new machinery and capital equipment.

Keywords: Patents; R&D; Capital expenditure; Poisson models; Biotechnology; L25; L65; O34 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11192-012-0711-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: The More You Spend, the More You Get? The Effects of R&D and Capital Expenditures on the Patenting Activities of Biotechnology Firms (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:scient:v:94:y:2013:i:2:d:10.1007_s11192-012-0711-z

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11192

DOI: 10.1007/s11192-012-0711-z

Access Statistics for this article

Scientometrics is currently edited by Wolfgang Glänzel

More articles in Scientometrics from Springer, Akadémiai Kiadó
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-11-13
Handle: RePEc:spr:scient:v:94:y:2013:i:2:d:10.1007_s11192-012-0711-z