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Explore the new relationship between patents and market value: a panel smooth transition regression (PSTR) approach

Author

Listed:
  • Yu-Shan Chen

    (National Taipei University)

  • Chun-Yu Shih

    (National Yunlin University of Science & Technology)

  • Ching-Hsun Chang

    (Tamkang University)

Abstract

This paper is the first research applying the new approach, panel smooth transition regression (PSTR) model, in the field of patent analysis. This study uses PSTR model to verify whether there is a single threshold effect of Herfindahl–Hirschman Index of patents (HHI of patents) on the relationship between patents and market value in the American pharmaceutical industry. The results demonstrate that HHI of patents moderates the relationship between market value and patent performance, patent counts/assets and patent citations/assets. When HHI of patents is less than or equal to the threshold value, 0.3220, the positive relationship between patent performance and market value is lower. Once HHI of patents is more than the threshold value, 0.3220, the positive relationship between patent performance and market value is higher. This study points out that the second regime is optimal because the extent of the positive relationship between patent performance and market value is higher.

Suggested Citation

  • Yu-Shan Chen & Chun-Yu Shih & Ching-Hsun Chang, 2014. "Explore the new relationship between patents and market value: a panel smooth transition regression (PSTR) approach," Scientometrics, Springer;Akadémiai Kiadó, vol. 98(2), pages 1145-1159, February.
    • Handle: RePEc:spr:scient:v:98:y:2014:i:2:d:10.1007_s11192-013-1110-9
    DOI: 10.1007/s11192-013-1110-9
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    Cited by:

    1. González, Andrés & Teräsvirta, Timo & van Dijk, Dick & Yang, Yukai, 2005. "Panel Smooth Transition Regression Models," SSE/EFI Working Paper Series in Economics and Finance 604, Stockholm School of Economics, revised 11 Oct 2017.
    2. Daquan Gao & Christina W. Y. Wong & Kee-hung Lai, 2023. "Development of Ecosystem for Corporate Green Innovation: Resource Dependency Theory Perspective," Sustainability, MDPI, vol. 15(6), pages 1-28, March.
    3. Yujiao Li & Johan Håkansson & Oana Mihaescu & Niklas Rudholm, 2019. "Agglomeration economies in urban retailing: are there productivity spillovers when big-box retailers enter urban markets?," Applied Economics Letters, Taylor & Francis Journals, vol. 26(19), pages 1586-1589, November.
    4. Kyriakos Drivas & Claire Economidou & Elena Ketteni & Konstantina Kottaridi, 2021. "Firms’ knowledge investment and market responses," Empirical Economics, Springer, vol. 61(5), pages 2363-2394, November.
    5. Po-Chin Wu & Shiao-Yen Liu & Ming-Fang Yang, 2017. "Nonlinear Exchange Rate Pass-Through: The Role of National Debt," Global Economic Review, Taylor & Francis Journals, vol. 46(1), pages 1-17, January.
    6. Yu-Shan Chen & Yu-Hsien Lin & Tai-Hsi Wu & Shu-Tzu Hung & Pei-Ju Lucy Ting & Chen-Han Hsieh, 2019. "Re-examine the determinants of market value from the perspectives of patent analysis and patent litigation," Scientometrics, Springer;Akadémiai Kiadó, vol. 120(1), pages 1-17, July.
    7. Wei, Wei & Zhang, Wan-Li & Wen, Jun & Wang, Jun-Sheng, 2020. "TFP growth in Chinese cities: The role of factor-intensity and industrial agglomeration," Economic Modelling, Elsevier, vol. 91(C), pages 534-549.

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