Impact of patenting on firms' performance: an empirical investigation based on manufacturing firms in India |
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Authors: | Sunil Kumar Ambrammal Ruchi Sharma |
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Institution: | School of Humanities and Social Sciences, Indian Institute of Technology, M Block, Khandwa Road, Indore, India |
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Abstract: | The study aims to estimate the impact of R&D expenditure and patenting on the performance of firms using productivity, profitability and Tobin's q ratio as the performance indicators. The study uses firm-level data of 489 high- and medium-technology firms during the period of 2000–2010. We employ relatively a new source of data particularly in the context of India, firm-level patent granted, that has not been explored earlier. The study finds that firms patenting result in productivity improvement of firms, whereas R&D expenditure does not. The study further finds the evidence of positive impact of patenting on financial performance of firm with significant differences between foreign and domestic firms. |
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Keywords: | R& D expenditure patent productivity profitability Tobin's q |
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