Organizational form and the economic impacts on innovation

The case of patent grants announcements

Shao-Chi Chang, Sheng Syan Chen, Yu Shun Hung

Research output: Contribution to conferencePaper

Abstract

Although the values of innovations greatly differ, prior studies on diversification and innovation focused only on the quantity of inventive outputs without considering the economic impacts on shareholders value. This study investigates the influence of corporate diversification on the wealth effect of patent grants announcements. We find that focused firms experience significantly greater market reactions to patent announcements than diversified firms. In addition, we find that diversification into related industries has little effect on the wealth gains of granted patents, but diversification into unrelated industries significantly damages the economic impacts of patents. Those findings are robust to different definitions of industry relatedness, and remain unchanged even after controlling other determinants.

Original languageEnglish
Publication statusPublished - 2006 Dec 1
Event66th Annual Meeting of the Academy of Management, AOM 2006 - Atlanta, GA, United States
Duration: 2006 Aug 112006 Aug 16

Other

Other66th Annual Meeting of the Academy of Management, AOM 2006
CountryUnited States
CityAtlanta, GA
Period06-08-1106-08-16

Fingerprint

Innovation
Economics
Industry
Shareholders
Patents
Organizational form
Announcement
Economic impact
Diversification

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation

Cite this

Chang, S-C., Chen, S. S., & Hung, Y. S. (2006). Organizational form and the economic impacts on innovation: The case of patent grants announcements. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.
Chang, Shao-Chi ; Chen, Sheng Syan ; Hung, Yu Shun. / Organizational form and the economic impacts on innovation : The case of patent grants announcements. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.
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Chang, S-C, Chen, SS & Hung, YS 2006, 'Organizational form and the economic impacts on innovation: The case of patent grants announcements' Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States, 06-08-11 - 06-08-16, .

Organizational form and the economic impacts on innovation : The case of patent grants announcements. / Chang, Shao-Chi; Chen, Sheng Syan; Hung, Yu Shun.

2006. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.

Research output: Contribution to conferencePaper

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Chang S-C, Chen SS, Hung YS. Organizational form and the economic impacts on innovation: The case of patent grants announcements. 2006. Paper presented at 66th Annual Meeting of the Academy of Management, AOM 2006, Atlanta, GA, United States.