Bloom, Nick and Van Reenen, John 
ORCID: 0000-0001-9153-2907
(2002)
Patents, real options and firm performance.
The Economic Journal, 112 (478).
C97-C116.
ISSN 0013-0133
Abstract
Analysing the new IFS-Leverhulme database on over 200 major British firms since 1968 we show that patents have an economically and statistically significant impact on firm-level productivity and market value. While patenting feeds into market values immediately it appears to have a slower effect on productivity. This generates valuable real options because patents provide exclusive rights to develop new innovations, enabling firms to delay investments. Higher market uncertainty, which increases the value of real options, reduces the impact of new patents on productivity. If the government's policy to reduce uncertainty is successful then this should increase the productivity of Britain's knowledge capital.
| Item Type: | Article |
|---|---|
| Official URL: | http://onlinelibrary.wiley.com/journal/10.1111/%28... |
| Additional Information: | © 2002 Royal Economic Society |
| Divisions: | Economics Centre for Economic Performance |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor |
| JEL classification: | D - Microeconomics > D2 - Production and Organizations > D20 - General |
| Date Deposited: | 27 Apr 2007 |
| Last Modified: | 11 Nov 2024 06:33 |
| URI: | http://eprints.lse.ac.uk/id/eprint/1451 |
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