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http://dx.doi.org/10.5762/KAIS.2017.18.9.356

The impact of the patent through open innovation on the performance of the pharmaceutical and biotechnology firms  

Lee, Byoungho (Daegu-Gyeongbuk Medical Innovation Foundation(DGMIF))
Lee, Sang-Won (School of Pharmacy, Sungkyunkwan University)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.18, no.9, 2017 , pp. 356-365 More about this Journal
Abstract
Most studies of the effects of corporate patents on managerial performance conducted to date have been based on internally-generated patents. However, global pharmaceutical and biotechnology companies acquire patents not only from internal research and development (R&D), but also through university-industry collaboration and purchase. Focusing on this issue, our study collected patents from various sources, including internal R&D, purchased patents, and university-industry collaboration, to examine the real effects more accurately. Additionally, our study used a finite time lag model to consider the time lag between patent and corporate performance. The results of the quantitative analysis of the relationship between patents and corporate financial performance revealed that patent quantitative levels had less impact on sales than other types. However, quantitative patents levels appeared to have a significant impact on market value. Moreover, quantitative patent levels appeared to moderate impact on corporate profit. Patents acquired by internal R&D had the greatest impact on market value, while purchased patents had the greatest impact on corporate profit and sales. The purchased patents had a significant effect on financial performance in the pharmaceutical and biotechnology companies because of the long time required and expense associated with R&D. Overall, the results of this study provide the basis for global pharmaceutical and biotechnology companies to configure an optimal patent portfolio.
Keywords
patent; open innovation; firm performance; pharmaceutical; biotechnology;
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