Patents, R&amp;D and lag effects: evidence from flexible methods for count panel data on manufacturing firms

Gurmu, Shiferaw; Pérez-Sebastián, Fidel

doi:10.1007/s00181-007-0176-8

Cited by 49 publications

(32 citation statements)

References 25 publications

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“…For example, Ward and Dranove () estimated that a 10 percent increase in NIH funding yields a 6 percent increase in industry R&D expenditures, after a seven‐year lag. Empirical studies of the relationship between private industry's R&D expenditures and granted patents, using distributed lag and GMM specifications similar to those in this paper, similarly estimate that a 10 percent increase in R&D expenditures yields a 4 to 7 percent increase in patents (Blundell, Griffith, & Van Reenen, ; Cincera, ; Gurmu & Pérez‐Sebastián, ).…”

Section: Discussionmentioning

confidence: 60%

Does Targeted, Disease‐Specific Public Research Funding Influence Pharmaceutical Innovation?

Blume‐Kohout

2012

J Policy Anal Manage

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Public funding for biomedical research is often justified as a means to encourage development of more (and better) treatments for disease. However, few studies have investigated the relationship between these expenditures and downstream pharmaceutical innovation. In particular, although recent analyses have shown a clear contribution of federally funded research to drug development, there exists little evidence to suggest that increasing targeted public research funding for any specific disease will result in increased development of drugs to treat that disease. This paper evaluates the impact of changes in the allocation of U. S. National Institutes of Health (NIH) extramural research grant funding across diseases on the number of drugs entering clinical testing to treat those diseases, using new longitudinal data on NIH extramural research grants awarded by disease for years 1975 through 2006. Results from a variety of distributed lag models indicate that a sustained 10 percent increase in targeted, disease-specific NIH funding yields approximately a 4. 5 percent increase in the number of related drugs entering clinical testing (phase I trials) after a lag of up to 12 years, reflecting the continuing influence of NIH funding on discovery and testing of new molecular entities. In contrast, we do not see evidence that increases in NIH extramural grant funding for research focused on specific diseases will increase the number of related treatments investigated in the more expensive, late-stage (phase III) trials.

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Section: Discussionmentioning

confidence: 60%

Does Targeted, Disease‐Specific Public Research Funding Influence Pharmaceutical Innovation?

Blume‐Kohout

2012

J Policy Anal Manage

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“…2 On the other hand, R&D does not always lead to innovation (Harris and Trainor, 1995;Mairesse and Mohnen, 2002). Moreover, there may be a significant lag between the former and the latter due to the delayed effect of R&D investment on innovation output (see, for example, Gurmu and Pérez-Sebastián, 2008). 3 Thus, studies that consider only one of these aspects (R&D or innovation) lead to an incomplete understanding of the relationship between innovation and exporting.…”

Section: Innovation and Trade: The General Frameworkmentioning

confidence: 97%

The relationship between innovation and export behaviour: The case of Galician firms

Rodil

Deza

Sánchez

2016

Technological Forecasting and Social Change

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“…The response in patents may be delayed by lags between investment and patenting. The patents literature has generally found a economically and statistically strong contemporaneous effect (Blazsek and Escribano, 2010;Gurmu and Perez-Sebastian, 2008;Hall et al, 1986;Montalvo, 1997); an exception is Blundell et al (2002) who find a slower effect under additional modelling assumptions.…”

Section: Solutionmentioning

confidence: 98%

The Effect of the Sarbanes-Oxley Act on Innovation

Waters

2011

SSRN Journal

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This paper adds to the literature on the Sarbanes-Oxley Act's net effects by looking at whether its passage was associated with a change in innovation and patenting. Its effects are separated into temporary uncertainty and changes in long term investment incentives in a dynamic programming problem faced by innovators who learn over time about SOX's effect. Innovation is found to fall under uncertainty for potential losses that are low relative to the potential profits. As companies learn, innovation rates readjust to SOX's long term persistent effect. We examine US patenting in stem cell technologies from 2001 to 2009 for SOX related changes. To reduce the dependence of our estimates on timing assumptions, we look for changes over the whole period. We firstly use a rolling break test with a single break point with Monte Carlo correction to p-values for search process endogeneity and MLE bias. Secondly, we run a hidden Markov model allowing for multiple states in the patent process and transitions between the states. We find a large and statistically significant change at a date consistent with a SOX effect under both testing methods. A three state hidden Markov model finds subsequent correction consistent with the theoretical model. Four competing explanations are found to account incompletely for the observed data.

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Patents, R&D and lag effects: evidence from flexible methods for count panel data on manufacturing firms

Abstract: Innovative activity, Patents and R&D, Individual effects, Count panel data methods, C20, O30,

Cited by 49 publications

References 25 publications

Does Targeted, Disease‐Specific Public Research Funding Influence Pharmaceutical Innovation?

Does Targeted, Disease‐Specific Public Research Funding Influence Pharmaceutical Innovation?

The relationship between innovation and export behaviour: The case of Galician firms

The Effect of the Sarbanes-Oxley Act on Innovation

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