Patent citation, R&D spillover, and Tobin's Q: Evidence from Taiwan semiconductor industry

Document Type

Article

Publication Date

2-1-2006

Abstract

Although prior research has examined the effect of patent citations on Tobin's Q in a variety of environments, in this study we examine whether the parameters are affected by stage of a company in the value chain. Unlike other national semiconductor firms, Taiwanese semiconductor firms typically specialize in one of the value-added activities, namely, either design or manufacturing or packaging and testing. Our finding is that the effect of patent citation on Tobin's Q is accentuated when the firm is at the front end of the value chain and diminishes as we proceed to the back end. This finding is novel in the literature. We also find that frequency of patent citations and R&D spillover are positive and significant in relation to Tobin's Q. In addition, the effect of R&D spillover on Tobin's Q is more pronounced for firms in the design sector relative to other sectors. © 2006 Springer Science + Business Media, Inc.

Identifier

31444454573 (Scopus)

Publication Title

Review of Quantitative Finance and Accounting

External Full Text Location

https://doi.org/10.1007/s11156-006-7034-1

ISSN

0924865X

First Page

67

Last Page

84

Issue

1

Volume

26

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