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The purpose of the research is to examine the role of innovation capital in the creation of value for businessorganizations. Taking an intellectual capital (IC) perspective, the paper considers R&D investment and itsimpacts on the companies’ operating, financial, and market performance. To investigate the different componentsof intellectual capital using financial measures, a modified Value Added Intellectual Coefficient (VAICTM) isused for analysis. Empirical study is conducted on 367 Taiwan semiconductor companies using Pearsoncorrelation and linear multiple regression whereas financial information is generated from a third party databasefrom Taiwan Economic Journal. The result shows that a company’s IC in general has a negative impact on itsfinancial and market performance. However, the association between innovation capital which captured by R&Dexpenditure efficiency (RDE) and companies’ operating, financial and market performance is significant. Theresults provide a different perspective apart from extant research.
Chang et al. (Sun,) studied this question.