Patents and market value in the U.S. pharmaceutical industry: New evidence from panel threshold regression

Yu Shan Chen*, Chun Yu Shih, Ching Hsun Chang

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)

Abstract

This paper applies panel threshold regression model to verify there is a triple threshold effect of patent citations/sales on the relationship between patent counts/sales and market value/sales in the American pharmaceutical industry. The results demonstrate that patent citations/sales moderates the relationship between patent counts/sales and market value/sales (i.e., the relationship between patent counts and market value). When patent citations/sales is less than or equal to the lowest threshold, 4.68, there is no significant relationship between patent counts and market value. Once patent citations/sales is more than the lowest threshold, there is a positive relationship between patent counts and market value. This study points out that the third regime is optimal because the extent of the positive relationship between patent counts and market value is most.

Original languageEnglish
Pages (from-to)161-176
Number of pages16
JournalScientometrics
Volume97
Issue number2
DOIs
Publication statusPublished - 2013 Nov
Externally publishedYes

Keywords

  • Market value
  • Panel threshold regression
  • Patent analysis
  • Patent citations
  • Patent counts

ASJC Scopus subject areas

  • Social Sciences(all)
  • Computer Science Applications
  • Library and Information Sciences

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