Patents as an indicator of value in Australian biotechs

TIlls paper considers whether patent activity has an impact on the stock market value of Australian biotechnology comparties. Using an event study methodology and patent events of listed biotechnology comparties from January 1998 to September 2003, the findings suggest that the patent is a weak indicator of innovative capability. Cross-sectional regression analysis finds no significant impact for either patent count, size nor age of a biotechnology company on the value of patent activity.