The Impact of Expenditures on R&D and Royalties and License (R&L) Fees on short- and long-run Performance for Taiwan’s Opto-electronics Industry

• Main Authors: JOHNSON CHEN, 陳志強
• Other Authors: 林 灼 榮 & 徐 啟 升
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/35928611504809081746

碩士 === 東海大學 === 管理碩士學程在職進修專班 === 93 === This paper measures the impact of expenditures on research and development (R&D) and royalties and license (R&L) fees on short- and long-run performance for Taiwan’s opto-electronics industry between the year of 1998 and 2003. We first apply the Iterative Seemingly Unrelated Regression Model to estimate the effects of returns on assets, returns on equity, gross profit margin, and net profit margin on R&D expenditures and R&L fees. On the long-run performance side, we estimate the impact of changes on R&D densities and R&L densities on Tobin’s Q by using the Ordinary Least Squares Method. Our findings are summarized as followings: (1)We document a U-shaped or inversed U-shaped relationship between R&D expenditures and short-run performance (except net profit margin). In addition, the positive impact of R&D investments on long-run performance lasts about two years. (2) There exists a positive relationship between R&L fees and short-run performance. However, R&L densities have an insignificantly negative impact on long-run performance. (3) We conclude that Taiwan’s opto-electronics industry, for going-concern considerations, should explore their own technologies or patents through R&D investments, and avoid acquiring technologies through payments of R&L fees.