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

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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.

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Authors and Affiliations

  1. Department of Business Administration, National Taipei University, 151, University Rd., San Shia, New Taipei City, 237, Taiwan

    Yu-Shan Chen

  2. Department of Business Administration, National Yunlin University of Science & Technology, Yunlin, Taiwan

    Chun-Yu Shih

  3. Department of Business Administration, Tamkang University, New Taipei City, Taiwan

    Ching-Hsun Chang

Authors
  1. Yu-Shan Chen
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  2. Chun-Yu Shih
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  3. Ching-Hsun Chang
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Correspondence to Yu-Shan Chen.

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Chen, YS., Shih, CY. & Chang, CH. Patents and market value in the U.S. pharmaceutical industry: new evidence from panel threshold regression. Scientometrics 97, 161–176 (2013). https://doi.org/10.1007/s11192-013-0999-3

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