Innovation and firm value: An investigation of the changing role of patents, 1985-2007

Sharon Belenzon, Andrea Patacconi

Research output: Contribution to journalArticlepeer-review

55 Citations (Scopus)
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This paper examines how the relationship between firm value and patent-based indicators of inventive activity has changed over time. We use data from more than 33,000 mergers and acquisitions deals between 1985 and 2007, and distinguish between American (USPTO) and European (EPO) patents. Our results indicate that over time EPO patents have become the dominant indicator of innovative activity, while USPTO patents have no effect on firm value near the end of the sample period. The results are robust to controlling for citations and are especially strong for small firms, for firms operating in the drug and chemical industries, and when target and acquiring firms operate in different industries or countries
Original languageEnglish
Pages (from-to)1496-1510
Number of pages14
JournalResearch Policy
Issue number8
Early online date16 Jun 2013
Publication statusPublished - Sep 2013

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