| This dissertation investigates patenting activity among the R&D intensive firms in the US. Patent product is the output of R&D investment and the input of increasing market value. In the first chapter several things will be accomplished. First we will examine the determinants of R&D expenditures. Then we will find the relationship between the number of patents, R&D activity, and knowledge stock. We will also examine how market share and knowledge stock affect market value. The findings are twofold; we found that one period-lagged financial strength and market shares are significantly related to R&D investment. The problem with patenting behavior studies in the past is that patents are not the same in value of research output and their effects on company profits are different. This problem is solved in the second chapter, where we make a new "adjuster", which is value of patents. The results of our estimation using value adjusted patents production function are significantly different than the number of patent production function using the Poisson-based econometric specification model. We adopted this value-adjusted patent data to find patenting efficiency employing Stochastic Frontier Analysis. We also applied value-adjusted patent data to Patent Growth Rate Distribution and estimated the degree of fatness of the distribution, kurtosis, in the third chapter. The results show that the value adjusted patent approach is useful to investigate patenting activity and R&D investment. |
