The Japanese Pharmaceutical Industry in Transition: Has Higher Research Orientation Resulted in Higher Market Value?

Abstract

We analyze here the determinants of market value for 34 listed Japanese pharmaceutical companies between 1987 and 1998. During this period, Japanese pharmaceutical firms increased their investments in basic R&D in the process of preparing for international market expansion. We provide evidence that international patents significantly contribute to a firm's market value, expressed in Tobin's q, while publications in the scientific literature do not contribute to this value. In contrast to earlier studies on the US pharmaceutical industry, such as Gambardella (1992), our findings also suggest that in Japan a firm's publications and patents are not inter-related.Asian Business & Management (2007) 6, 75â 94. doi:10.1057/palgrave.abm.9200206 [ABSTRACT FROM AUTHOR] Copyright of Asian Business & Management is the property of Palgrave Macmillan Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)