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Firm market valuation and intellectual property assets

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Abstract

This paper investigates the relationship between the innovative activity of the top corporate R&D investors worldwide and their valuation on the financial markets. The empirical analysis is based on a sample of more than 1,500 top publicly listed Multinational Corporations (MNCs) performing a considerable share of the business investment in R&D worldwide. The main dataset covers their intellectual properties, patents and trademarks, filed between 2005 and 2012. The paper extends upon the recent literature on the links between IP assets and the firms financial valuation. It assesses the potential premium resulting from the interactive use of different IPRs. More importantly, it differentiates the extent to which IPRs confer a market premium to companies with respect to their industrial competitors from the extent to which within-company variations hold the key to a market premium. Finally confirming the relevance of corporate mixes of IP assets, important industrial specificities are found in the premiums granted to both individual and two-ways strategies.

Suggested Citation

  • Mafini Dosso & Antonio Vezzani, 2017. "Firm market valuation and intellectual property assets," JRC Working Papers on Corporate R&D and Innovation 2017-07, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:wpaper:201707
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    Cited by:

    1. Marco Grazzi & Chiara Piccardo & Cecilia Vergari, 2020. "Concordance and complementarity in IP instruments," Industry and Innovation, Taylor & Francis Journals, vol. 27(7), pages 756-788, August.
    2. Castaldi Carolina & Mafini Dosso, 2018. "From R&D to market: using trademarks to capture the market capability of top R&D investors," JRC Working Papers on Corporate R&D and Innovation 2018-01, Joint Research Centre (Seville site).
    3. Cicero Eduardo Walter & Daniel Ferreira Polónia & Manuel Au-Yong-Oliveira & Cláudia Miranda Veloso & Rafael Ângelo Santos Leite & Iracema Aragão, 2021. "Drivers of Innovation Capacity and Consequences for Open Innovation," JOItmC, MDPI, vol. 7(2), pages 1-17, May.
    4. M. Grazzi & C. Piccardo & C. Vergari, 2019. "Concordance and complementarity in Intellectual Property instruments," Working Papers wp1127, Dipartimento Scienze Economiche, Universita' di Bologna.

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    More about this item

    Keywords

    patents; trademarks; innovation; market valuation; within-/between-effects;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other

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