R&D, Patent Arrangements, and Financial Performances: Evidence from Taiwan

In this study, we investigate the relationships among R&D, patent arrangements, and financial performances for the firms listed on the Taiwan Stock Exchange (TWSE). In particular, we apply Vector Autoregression (VAR) to examine the relationships of the listed firms classified as industries of Semiconductor, Computer and Peripheral Equipment, Optoelectronic, Communications and Internet, Electronic Parts & Components, Electronic Products Distribution, and Other Electronic, by the TWSE. In sum, we find the different lead-lag relationships among R&D, patent arrangements, and financial performances in different industries, indicating important insight into patent arrangements.