R&D Expenditure, Spillover Effect, Patent Quality and Market Value ? A Case Study of Foundries in Semiconductor Industry

In this study, an associated research using the regression analysis method of time series and cross section was to gather statistics of H index analyzed by granted patents from the value of the empirical firm returning and patent index in 2005 to 2012. The empirical companies were samples from the NBER classified semiconductor manufacturing industry and then analyzed their firm market value return with the financial data from Datastream database and the R&D outputs. This research develop two hypothesis about research and development, the quality of patent and the relationship with the market value. This study framework with panal data model verified that the optimization of the random effect model was better than the others. The empirical results indicated that the R&D outputs and h index have a comprehensive effect on market value in the semiconductor industry.