Why and How the Value of Science-Based Firms Violates Financial Theory: Implications for Policy and Governance

Abstract

T his paper considers how and why the positive net effect of science-related activities substantially increases the value beyond what would be anticipated by the financial theory, which seems to work so well for other fields. A qualitative analysis of 25 small biotechnology R&D firms listed on a stock exchange illustrates that these firms do not follow the neo-classical expectation of Gaussian returns. To better understand this deviation from the expected Gaussian returns, the firms are compared to S&P 100 and the Thomson Reuters Global Innovator List. It is found that while these large firms have

Modeling of the Balanced Strategy of Innovative Development of the Enterprises as Bases of Ensuring Economic Security of Russia

“…"The new effective model of development of economy is the model answering the purpose of social and economic development of the country, providing formation of modern outlook, generation of the research environment, reflecting the effectiveness of real process of reproduction and effectiveness of work of each division realizing efficiency of internal process of production" [4] Problems of formation of strategy of innovative development of the enterprises were an object of research of rather large number of domestic and foreign researchers, for example, [5,6,7,8]. At the same time, it is important to note that for domestic science the "narrow" orientation by consideration of questions of innovative development expressed in concentration only on technological aspect is peculiar what, in particular, the choice of the key strategic parameters in Strategy testifies to.…”