KDI Journal of Economic Policy

  • 제42권3호
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  • Pages.33-52
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  • 2020
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  • 2586-2995(pISSN)
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  • 2586-4130(eISSN)
한국개발연구원 (Korea Development Institute)
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Do Patents Lead to an Increase in Firm Value? Evidence from Korea

  • 투고 : 2020.08.06
  • 발행 : 2020.08.31
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초록

Patents are widely used in the literature as a measure of firm-level innovation. It is regarded that patents improve a firm's operational environment and ultimately increase the value of the firm. However, the relationship between patents and firm value in Korea is under-explored in the literature due to the difficulty of constructing datasets. This paper examines whether patents in Korea increase the market value of a firm. To do this, I exploit novel data on firm-level patents and financial information of all listed Korean companies during the period of 1993-2015 and estimate the non-linear production-function type of Tobin's q equations on R&D, patents, and citations. Surprisingly, I find that patents and citations are weakly associated with firm value, while R&D is strongly associated with an increase in firm value. These results direct imply that policymakers in Korea should enhance patenting incentives to encourage firms to innovate.

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참고문헌

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