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Corporate Science, Innovation, and Firm Value

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  • Markus Simeth

    (Department of Business Administration, Universidad Carlos III de Madrid, 28903 Getafe, Spain; and Department of Managerial Economics, Strategy and Innovation, KU Leuven, 3000 Leuven, Belgium)

  • Michele Cincera

    (iCite, Solvay Brussels School of Economics and Management, Université Libre de Bruxelles, 1050 Brussels, Belgium)

Abstract

Many firms actively disclose research findings in scientific peer-reviewed journals. The literature highlights several potential benefits of such scientific boundary-spanning activities, including privileged access to academic information networks. However, scientific disclosure may lead to unintended knowledge spillovers. It remains unclear whether active engagement in science leads to higher returns. This paper investigates the impact of scientific activities on the firm’s market value, using accounting data for U.S. firms and matched patent and scientific publication data. We find evidence for the positive impact of scientific publications on a firm’s market value beyond the effects of research and development, patent stocks, and patent quality, and also document heterogeneity with respect to this impact between different industrial sectors. This paper was accepted by David Hsu, entrepreneurship and innovation .

Suggested Citation

  • Markus Simeth & Michele Cincera, 2016. "Corporate Science, Innovation, and Firm Value," Management Science, INFORMS, vol. 62(7), pages 1970-1981, July.
  • Handle: RePEc:inm:ormnsc:v:62:y:2016:i:7:p:1970-1981
    DOI: 10.1287/mnsc.2015.2220
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