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Industrial design rights and the market value of firms

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  • Andersson, David E.
  • Ekman, Anton
  • Huila, Anton
  • Tell, Fredrik

Abstract

This paper studies how investments in design affect the market value of firms, using European Registered Community Designs and national Swedish design rights data combined with R&D, patent and trademark data, for the period 2003–2013. This paper is the first large-scale quantitative study using industrial designs rights to measure design. Nonlinear least-squares regressions are used to investigate the association between these variables and the market value of Swedish firms. The results show that industrial designs rights have a positive and significant relationship to the market value of firms. It provides both new evidence on the effect of industrial design rights on the market value of firms and internationally comparable results for other intangible assets such as patents, trademarks and R&D. Theoretically, the paper contributes to the understanding of design knowledge and the valuation of design rights.

Suggested Citation

  • Andersson, David E. & Ekman, Anton & Huila, Anton & Tell, Fredrik, 2023. "Industrial design rights and the market value of firms," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:tefoso:v:196:y:2023:i:c:s0040162523005127
    DOI: 10.1016/j.techfore.2023.122827
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    More about this item

    Keywords

    Industrial design rights; Patents; Trademarks; R&D; Intellectual property; Market value; Tobin’s q;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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