Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/27304
Authors: 
Schmidt-Ehmcke, Jens
Zloczysti, Petra
Year of Publication: 
2008
Series/Report no.: 
DIW Discussion Papers 780
Abstract: 
This paper discusses the impact of a firm's technology portfolio on its market value. Two concepts are used to characterize a firm's portfolio: the number of technological fields and the degree of relatedness within the portfolio characterized by the amount of joint occurrences of patents in technological fields. Based on a theoretical framework using an expanded Tobin's q approach, it presents evidence for a negative influence of portfolio size on the market value caused by a diminishing potential to make use of economies of scale. This discount can be counterbalanced when the relevant fields share a common technological base which is measured by the degree of technological relatedness.
Subjects: 
technological portfolio
relatedness
patent statistics
tobin's q
economies of scope
JEL: 
L25
O31
O32
Document Type: 
Working Paper

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