Profitability decided by patent quality? An empirical study of the U.S. semiconductor industry
The investment in research and development (R&D) for semiconductor industry is never small as the technology cycle time (TCT) is relatively short comparing to other industries, thus a semiconductor company requires lots of technological innovations and capital offerings to maintain. The semiconductor industry contributes primarily part of the micro-electronic industries. Advancing technology and patent application are the centre of attention within the semiconductor sector. This research examines the relationship between patent quality and the profits a patent creates for a company in this selected field. This study distinguishes itself from prior research by including cross-sectional data, time series data to simultaneously collect and analyze. The study result shows that some indicators of patent quality are statistically significant to return on assets.
profitability patent patent quality patent citation