Patent propensity, R&D and market competition: Dynamic spillovers of innovation leaders and followers Articles uri icon

publication date

  • March 2016

start page

  • 145

end page

  • 163


  • 1


  • 191

International Standard Serial Number (ISSN)

  • 0304-4076

Electronic International Standard Serial Number (EISSN)

  • 1872-6895


  • In this article, dynamic interactions among stock return, Research and Development (R&D) investment, patent applications and patent propensity of firms are studied. Patent innovation leader and follower firms are identified with respect to their quality-adjusted knowledge stock. Significant and positive dynamic spillover effects are obtained in a panel vector autoregressive model. We find positive dynamic spillover effects from patent innovation leader to followers. We show that an increasing degree of competition enhances innovation and patent applications, which helps firms appropriating part of the benefits of their R&D investments. (C) 2015 Elsevier B.V. All rights reserved.


  • patent propensity; competition; innovation leaders; panel vector autoregression; simulated maximum likelihood; panel; opportunity; valuation; profits; models; output; firms