A patent is one of the most direct products of corporate science creativity and technology innovations. A patent is a reward for a protected system of creative activity, and it can increase a corporation’s price-negotiating and competitive abilities and raise corporate value. This study analyzes 125 of the registered electronic companies in Taiwan, chosen as research subjects in 2005. Multidimensional Scaling and Cluster Analysis are used to investigate the associations between technology positions and corporate value using data from the United States Patent and Trademark Office database and the Taiwan Economic Journal. Results indicate a difference in corporate value depending on technology positions, and some technology positions in computer systems industry have a significantly stronger effect on corporate value than other positions. Additionally, technology positions in Internet and communications, semiconductors, computer accessories, and the photonics industry do not have a significant effect on corporate value. Companies must not only hold patents, but also strengthen their technology positions to distinguish the differences of others to increase corporate value.
Relation:
Journal of Accounting, Finance & Management Strategy 6(1), pp.31-57
