Applying Quantile Regression to Assess the Relationship between R&amp;D, Technology Import and Patent Performance in Taiwan

Chung-Chu Chuang,Hsiao-Chen Chang,Yi-Hsien Wang,Chung-Min Tsai

doi:10.3390/jrfm14080358

Applying Quantile Regression to Assess the Relationship between R&D, Technology Import and Patent Performance in Taiwan

Chung-Chu Chuang, Hsiao-Chen Chang + Show 2 more

Open Access

https://doi.org/10.3390/jrfm14080358

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Abstract

Electronics companies are facing global economic and trade competition. As patents can form an endowment shield that protects the development of corporate capabilities, companies are actively increasing their number of patents and attaching importance to technological research and development and patent management to achieve differentiated strategic effects. As such, patent layout and research and development (R&D) investment have become important strategic weapons for Taiwanese manufacturers, with which to enter the international market or compete among enterprises. This study first utilized the principal components analysis method to define patents in terms of the number of patents and the times patents are cited, with R&D defined in terms of expenditure and intensity. Furthermore, this study used a quantile regression model to visualize the relationship between R&D, technological imports, and patent performance in Taiwanese listed electronics companies. The empirical results show that technological imports in the second time-lag period require patents, while the effect on patents varies alongside industry characteristics. In addition, the empirical results found that the total assets, number of employees, and number of patent inventors are also factors that significantly affect patents. This research proposes that Taiwan’s listed electronics companies should expand their scale, increase their economic efficiency, maximize their resources, increase their patents, enhance their corporate value, boost their investor confidence, and improve their industry competitiveness.

Highlights

The global economy has been dominated by the knowledge-based economy since the 1990s, which has driven the prosperity of the electronics industry
This study aimed to discuss the correlation between research and development (R&D), technology, and patents in Taiwanese listed electronics companies
This study focused on Taiwan’s listed electronics companies from 2000 to 2005 and applied principal component analysis to define the number of patents and frequency of patent citations to represent patents, and defining

Summary

Introduction

The global economy has been dominated by the knowledge-based economy since the 1990s, which has driven the prosperity of the electronics industry. The development of the electronics industry has always relied upon knowledge intensity and inventions. To achieve a competitive edge, the electronics industry relies upon intangible assets and knowledge rather than tangible assets such as cash, land, plants, or equipment. Taiwan’s manufacturing industry has been rapidly restructuring, while Taiwan’s electronics industry has been growing rapidly, filling the gap left by the relocation of traditional industries and becoming the backbone of Taiwan’s economy. In 1996, the Organization for Economic Cooperation and Development (OECD 1996). Released a report titled “The Knowledge-Based Economy”, which highlights that knowledge is an important factor of production. The knowledge-based economy refers to an economic system based on the ownership, allocation, generation, and use of knowledge

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