Measuring the economic benefits from R&amp;D: improvements in the MMI model of the United Kingdom National Measurement System

Bowns, Steven; Bradley, Ian; Knee, Paula; Williams, Fiona; Williams, Geoffrey

doi:10.1016/s0048-7333(02)00115-4

Cited by 11 publications

(4 citation statements)

References 20 publications

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“…Over the last 10 years, the academic literature has provided evidence of the important role played by research and development (R&D) in economic growth (Jones, 1995; Bowns et al, 2003; Arnold, 2006). As a result, scholars have paid increasing attention to R&D spending, which is no longer considered a cost but rather a value‐increasing investment in that R&D spending yields some supranormal profits.…”

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confidence: 99%

How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?

Pindado

Queiroz

Torre

2010

Financial Management

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"This paper focuses on how a firm's characteristics affect the market valuation of its research and development (R&D) spending. We derive a valuation model based on the capital market arbitrage condition. Using the generalized method of moments and data from the Eurozone countries to estimate this model yields interesting results. Several firm characteristics (size, firm growth, and market share) positively affect the relationship between firm value and R&D spending, while others (free cash flow, dependence on external finance, labor intensity, and capital intensity) exert a negative effect. Therefore, we conclude that the effectiveness of R&D spending depends on firm characteristics". Copyright (c) 2010 Financial Management Association International.

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confidence: 99%

How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?

Pindado

Queiroz

Torre

2010

Financial Management

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“…The pharmaceutical industry is very important not only in health terms but also in economic terms, so it is relevant to study its internal and external R&D activity at both industry and laboratory level, and from the perspectives of public [9] and private funding of R&D. In addition, pharmaceutical companies have engaged in R&D collaboration not only with other laboratories but also with other firms and universities [45]. According to the IMS Institute [35], spending on medicines will reach nearly 1.3 trillion USD in 2018.…”

Section: Efficiency Measurement In Pharmaceutical Firmsmentioning

confidence: 99%

Measuring the efficiency of large pharmaceutical companies: an industry analysis

et al. 2016

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This paper evaluates the relative efficiency of a sample of 37 large pharmaceutical laboratories in the period 2008-2013 using a data envelopment analysis (DEA) approach. We describe in detail the procedure followed to select and construct relevant inputs and outputs that characterize the production and innovation activity of these pharmaceutical firms. Models are estimated with financial information from Datastream, including R&D investment, and the number of new drugs authorized by the European Medicines Agency (EMA) and the US Food and Drug Administration (FDA) considering the time effect. The relative performances of these firms-taking into consideration the strategic importance of R&D-suggest that the pharmaceutical industry is a highly competitive sector given that there are many laboratories at the efficient frontier and many inefficient laboratories close to this border. Additionally, we use data from S&P Capital IQ to analyze 2071 financial transactions announced by our sample of laboratories as an alternative way to gain access to new drugs, and we link these transactions with R&D investment and DEA efficiency. We find that efficient laboratories make on average more financial transactions, and the relative size of each transaction is larger. However, pharmaceutical companies that simultaneously are more efficient and invest more internally in R&D announce smaller transactions relative to total assets.

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“…One possible explanation is that low innovators focus on organizational innovation (particularly management processes) to the exclusion of technological innovation. Although some research shows that organizational innovation can be just as critical to a firm's success as technological innovation (Hardie et al 2005), there is evidence to support the widely held view that technological innovation plays the lead role in driving growth (Bowns et al 2003), especially in combination with organizational innovation (ABS 2007). The findings here support Bowns et al (2003) on the value of technological innovation.…”

Section: Technology Strategiesmentioning

confidence: 99%

Relationship between Construction Firm Strategies and Innovation Outcomes

Manley

McFallan

Kajewski

2009

J. Constr. Eng. Manage.

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Survey results provide a preliminary assessment of the relative contribution of a range of tactical business strategies to innovation performance by firms in the Australian construction industry. Over 1,300 firms were surveyed in 2004, resulting in a response rate of 29%. Respondents were classified as high, medium or low innovators according to an innovation index based on the novelty and impact of their innovations and their adoption of listed technological and organizational advances. The relative significance of 23 business strategies concerning (1) employees, (2) marketing, (3) technology, (4) knowledge and (5) relationships was examined by determining the extent to which they distinguished high innovators from low innovators. The individual business strategies that most strongly distinguished high innovators were (1) 'investing in R&D', (2) 'participating in partnering and alliances on projects', (3) 'ensuring project learnings are transferred into continuous business processes', (4) 'monitoring international best practice', and (5) 'recruiting new graduates'. Of the five types of strategies assessed, marketing strategies were the least significant in supporting innovation. The results provide practical guidance to managers in project-based industries wishing to improve their innovation performance.

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Measuring the economic benefits from R&D: improvements in the MMI model of the United Kingdom National Measurement System

Cited by 11 publications

References 20 publications

How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?

How Do Firm Characteristics Influence the Relationship between R&D and Firm Value?

Measuring the efficiency of large pharmaceutical companies: an industry analysis

Relationship between Construction Firm Strategies and Innovation Outcomes

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