The Market Value of R&D in Weak Innovation Regimes: Evidence from India /
Kanwar, Sunil.
The Market Value of R&D in Weak Innovation Regimes: Evidence from India / Sunil Kanwar, Bronwyn H. Hall. - Cambridge, Mass. National Bureau of Economic Research 2015. - 1 online resource: illustrations (black and white); - NBER working paper series no. w21196 . - Working Paper Series (National Bureau of Economic Research) no. w21196. .
May 2015.
We revisit the relationship between market value and innovation in the context of manufacturing firms in a developing country, using data for Indian firms from 2001 through 2010. Surprisingly, we find that financial markets value the R&D investment of Indian firms the same or higher than it values such investment in developed economies such as the US and European countries, suggesting some degree of underinvestment. The paper explores the use of a proxy for the option value of R&D and finds that this can account for a very small part of the R&D valuation (about 10 per cent). We also find that the market value-R&D relationship does not vary significantly across industry groups, although these results are rather imprecise.
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Mode of access: World Wide Web.
The Market Value of R&D in Weak Innovation Regimes: Evidence from India / Sunil Kanwar, Bronwyn H. Hall. - Cambridge, Mass. National Bureau of Economic Research 2015. - 1 online resource: illustrations (black and white); - NBER working paper series no. w21196 . - Working Paper Series (National Bureau of Economic Research) no. w21196. .
May 2015.
We revisit the relationship between market value and innovation in the context of manufacturing firms in a developing country, using data for Indian firms from 2001 through 2010. Surprisingly, we find that financial markets value the R&D investment of Indian firms the same or higher than it values such investment in developed economies such as the US and European countries, suggesting some degree of underinvestment. The paper explores the use of a proxy for the option value of R&D and finds that this can account for a very small part of the R&D valuation (about 10 per cent). We also find that the market value-R&D relationship does not vary significantly across industry groups, although these results are rather imprecise.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.