The relationship between the knowledge sources and market reactions to patent grants announcement

• Main Authors: Chuan-Chih Hsieh, 謝轉智
• Other Authors: Shao-chi Chang
• Format: Others
• Language: en_US
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/92932588779960350809

碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 96 === Many studies show evidence that innovations indeed enhance the firm value;however, the value of innovations have discrepancy because of the characteristic ofinnovation. This study investigates that the effect of different knowledge sources on the market value of firms. I characterize the distant knowledge by using two boundaries: technological boundaries and organizational boundaries. I hypothesize the knowledge which is characterized by technological context and organizational context brings a differential market value for firm. To test our hypotheses, I used the patent data as the innovation proxy. I find that different compositions in innovations create different impacts on firm value. Our findings suggest that innovation being drawn from technologically distant knowledge is expected to have better market reaction effect than technologically proximate for knowledge within organizational boundaries when patent grants are announced. However, innovation drawn from technologically similar knowledge is expected to have better market reaction effect than technologically distant knowledge for outside organizational boundaries when patent grants are announced.