Title: Patents, investments in R&D, and market value: an analysis by company size

Authors: Fernando Henrique Taques; Leonardo Fernando Cruz Basso; Nelson Areal

Addresses: Post-Graduation Program in Business Administration, Mackenzie Presbyterian University, São Paulo, Consolação Street, 896, Office 76, 01302907, Brazil ' Post-Graduation Program in Business Administration, Mackenzie Presbyterian University, São Paulo, Consolação Street, 896, Office 76, 01302907, Brazil ' Department of Management, NIPE and School of Economics and Management, University of Minho, Braga, Gualtar Campus, Office 3.29, 4710057, Portugal

Abstract: This research aims to understand whether organisational innovation can explain the market value of companies based on indicators of patents published, patents cited, and R&D expenditure. This empirical study performed a sample of 1,342 companies from 1985 to 2016 with fixed-effects and random-effects panel data models and quantile regression for panel data. There was partial support for the evidence that innovation positively affects companies' market value. This result could differ from the indicator applied in the estimates and methodology used and the company's size. Regardless of the empirical method, the total variables assets and gross revenue were able to explain the variations in the market value of organisations in most models. However, the coefficients found are different between the sample quantiles suggesting that the company's size may be relevant.

Keywords: innovation; patent; R&D; market value; size.

DOI: 10.1504/IJESB.2025.142888

International Journal of Entrepreneurship and Small Business, 2025 Vol.54 No.1, pp.1 - 47

Received: 20 Aug 2021
Received in revised form: 18 Oct 2022
Accepted: 27 Oct 2022
Published online: 02 Dec 2024 *

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