A Study on the Relationship of Production Value, R & D Investment, and Intellectual Property in High Technology Industries Chih Chin Yang* and Ping-Yi Chao** Department of Business Administration, National Sun Yat-sen University, Kaohsiung, Taiwan, Republic of China Abstract Intellectual capital is often defined as a belief that is true and justified. This defined has led to its market and product values. This study of the valuation proposed a new model of intellectual capital including content classification with experiment, experience, and knowledge elements and infrastructure classification with finance, human, and facility elements. This thesis proposed a new theory of intellectual capital and a valuation approach with production and market. After an in-depth review and case analysis of leading firms in this field, a holistic intellectual capital model is discussed, which involves transport, delivery supporting, and interface and systems of on intellectual capital. Through a quantity study and empirical study, it is found that there is a significant relationship between the six intellectual capital elements, including three elements of content and three elements of infrastructure in a company, and its market and product values. The purpose of this study is to investigate the six elements of intellectual capital, ie experiment, experience, knowledge, finance, human, and facility elements, and their interrelationships within all high-technologies in Taiwan. The main conclusions from this particular study are that: positive relationship between infrastructure of enterprise and content of enterprise is important regardless of all high-technology industries type; the relationship between infrastructure and product value is positive and significant; the relationship between content of enterprise and product value is important for high-technology industries. The final specified models in this study show a robust explanation of business performance in product value within the high technology industries in Taiwan. *Graduated student **Advisor

This study analyzes the impact of transfer pricing on multinational enterprises' R&D investment decisions. Specifically, I examine the effects of two commonly used contract designs to exchange and develop intangible assets across group affiliates: licensing and cost sharing agreements. Whilst serving as a tool to allocate taxable income between group affiliates, the economic implications of licensing and cost sharing agreements differ. Whereas licensing agreements provide for a sharing rule on the intangible's profits, cost sharing agreements on the other hand provide a sharing rule on R&D development costs. This difference matters when firms simultaneously use internal transfer prices to allocate taxable income and provide local management with sufficient investment incentives. Using a multiple-agent, moral hazard investment framework I model a multinational firm with comparable group affiliates in two countries that delegates the R&D investment decision to a local risk and effort averse affiliate manager. The results suggest that the optimal contract not only depends on available tax benefits, but also on R&D investment and manager specific characteristics. A licensing agreement provides management with larger incentives to invest in R&D mitigating agency concerns associated with R&D. On the other hand, using a cost sharing agreement the firm can cater different risk preferences among managers potentially increasing investment. The arm's length principle however may distort an efficient allocation of R&D costs when using a cost sharing agreement. / Series: WU International Taxation Research Paper Series

In 2003 national heads of African states, including Zambia, met in Maputo and pledged to increase financial resources to the agriculture sector, up to 10 % of their national budgets, in order to meet growth targets. Given the need to increase investments in agriculture, it follows that impact assessment studies have become handy as funding agencies demand better accountability and empirical justification for further investment. However, experts have reasoned that the quantity of resources is as important as the quality of spending in that, if resources are allocated efficiently, more could be achieved with the same level of resources. The lack of an effective strategy and basis upon which investments in agriculture crop research ought to be prioritised in order to improve agricultural productivity is the main concern in Zambia. This study sought to illustrate the use of the Dynamic Research Evaluation for Management (DREAM) model to assess the economic returns of investing in agriculture technologies and to set priorities for crop-based research activities in Zambia. The study hypothesised that the financial outlay allocated to agricultural crop research is not efficiently allocated so as to achieve the nation’s agricultural production potential, and that agricultural crop research investment influences the distribution of welfare effects on producers and consumers. The DREAM model is conceptually based on the economic surplus theory and is designed for research priority setting and ex ante evaluations. It computes the net present value (NPV) of benefits for both producers and consumers as a result of investing in agriculture technology. The findings from this study reveal that investment in agriculture crop research in Zambia is worthwhile as positive net present values were obtained for all crops under consideration in this study. Maize research gives the highest return to both large-scale and smallholder producers. Maize also yielded the highest returns for consumers in Zambia. In order of priority, maize is followed by soya bean, groundnuts, cotton, millet, sunflower and sorghum. In spite of this, the order of priority in terms of financial expenditure on crop research is maize, cotton, sorghum, soya bean, groundnuts, sunflower and millet. Therefore, the allocation of financial resources towards crop research is not efficient for all crops except maize since some crops such as sorghum receiving high financial expenditure in research did not necessarily generate high returns. This is because the Government still conducts the bulk of research in Zambia, and as such, other social objectives such as equity and food security considerations play a major role in determining investment patterns. The study further establishes that the choice of crop research expenditure influences the distribution of welfare benefits on different producer groups; and that smallholder farmers in Central, Eastern and Southern province are among the group that received the highest proportion of benefits even for crops such as maize for which financial resources were efficiently allocated. Therefore, the efficiency objective may not necessarily leave smallholder farmers worse off as long as they have access to complementary infrastructure and institutions for agriculture production and marketing. As such the study recommends that the Government, private sector and other development partners must focus on raising agriculture productivity by expanding investments in crop science-based technologies; and also recommends re-allocation of financial resources between crops in favour of crops with high returns because this benefits both large scale and smallholder farmers. This must be accompanied by further investment in complementary infrastructure and good governance. Copyright / Dissertation (MScAgric)--University of Pretoria, 2010. / Agricultural Economics, Extension and Rural Development / unrestricted

Purpose Various studies suggested that family ownership plays a significant role in R&D investment considering family-owned businesses. This thesis specifically explores sibling ownership and how it influences R&D Investment in their company. Moreover, various factors have been highlighted and explored extensively to understand what makes the difference between sibling owners and sole owners when it comes to their behaviors whether to pursue and invest in R&D for the betterment of the company. Method This paper adopted qualitative research as a method. Data was collected from 5 cases which consisted of sibling owners and sole owners to understand the differences between 2 types. In this multiple case study, two respondent took part in each case. Semi-structured interviews were carried out to have an in-depth understanding of the cases. Furthermore, the analysis of these data was done using the SEWi scale which provided us the three dimensions to scrutinize the impact on R&D investment by sibling owners and compare it with sole owners. Conclusion Using the theoretical lenses, the sibling ownership presents a unique attitude as of any other family ownership. To have a more broader approach, the comparison between a sole owner and sibling owner derived many different factors to take up R&D Investments. It shows that sibling owner does not always initiate investment for the company to prosper but they consider other family members involvement for investing. R&D investments are taking part in the sibling ownership by keeping the family wealth in mind. This tends to provide evidence that sibling owner is careful in investment for R&D. Family values and family unity in sibling owned business create an immense impact on the decision making for the investment. Considering the decision making regarding R&D investment, sibling owner believe that they have ease to make a decision when the family is involved whereas sole owner finds difficulty in taking such decisions, especially under uncertainty. The following observations from our research provided the idea that sibling owner initiative to invest in R&D is not only restricted to the company growth perspective but also the involvement of various family dimensions.

Investments in R&D activities are essential to firms. Decisions to increase or decrease R&D investments may rely according to changes in macroeconomic factors. The purpose of this paper is: to examine how firms in the industries; manufacturing computers, electronics and optics and manufacturing electrical equipment, have increased or decreased their R&D investments, in conjunction with macro factors during the 2000s. The sample is 49 Swedish firms. This paper is based on quantitative firm-level panel data on R&D activity investments and aggregated quantitative macro-level data on macro factors. The firm-level panel data set has been put together completely from scratch, using collected and transformed raw data. Using a logistic regression model, the results show that macro factors do affect R&D investments on a micro-level, to some extent. Further, the results show that change in macro factors does to a greater extent, affect decreases in R&D investments than increases in R&D investments. The process of increase and decrease of R&D investment should be considered as two different dynamic processes. Increase and decrease do not follow the same pattern, thus a decrease of R&D investments is a more explicit decision than a decision to increase R&D investments.

This dissertation assumes the R&D investment future cash flows of a firm which follows an arithmetic Brownian motion and Poisson (jump) process. This study evaluates the R&D investment decisions under different market structure while considering the stochastic impact scales are the normal, negative exponential, and Laplace distributions, respectively. The first model of this dissertation aims to build monopoly R&D investment decisions under different stochastic impact scales. The result of this study is different from Cossin et al. (2002), since it shows that the outcome of Cossin et al. (2002) has underestimated decision values in assessing lump-sum investment, staging investment, and liquidation decisions. Sensitivity analysis reveals the following: (1) the positive relation parameter for the lump-sum investment is the cash flow growth rate of project, frequency of jump event, time of jump event, mean and deviation of normal distribution, and initial cost. (2) The positive relation parameter for liquidation decisions is the cash flow growth rate of project, frequency of jump event, time of jump event, and mean and deviation of normal distribution. The second model of this dissertation extends the monopoly to duopoly, and it aims to build the duopoly R&D investment decisions under different stochastic impact scales. The result of the study accords with Tsekrekos (2003) that with more uncertainty, there are more duopoly investment thresholds. Sensitivity analysis reveals the following: (1) the positive relation parameter for the leading R&D investment thresholds is deviation, frequency of jump event, discount rate, investment cost, and mean and deviation of normal distribution, while the negative relation parameter is the growth rate and market share. (2) The positive relation parameter for the follower R&D investment thresholds is deviation, market share, frequency of jump event, discount rate, investment cost, and mean and deviation of normal distribution, while the negative relation parameter is the growth rate. The third model of this dissertation extends to oligopoly, and it aims to build the oligopoly R&D investment decisions under different stochastic impact scales. The result of the study accords with the expectancy of Grenadier (2002), that while other things being equal, the more industry's competition degree, the lower oligopoly investment thresholds. Namely the higher the numbers of firms in an industry, those oligopoly firms have more incentives to invest early. Sensitivity analysis shows the following: (1) The positive relation parameter for the oligopoly R&D investment thresholds is deviation, frequency of jump event, discount rate, unitary investment cost, and mean and oligopoly supply, while the negative relation parameter is the growth rate and market share. (2) The negative relation parameter is the number of firms in the industry, growth rate, and demand elasticity.

abstract: Although China’s economy has experienced fast growth over the years, it is also characterized by a lack of innovative products and slow development of advanced production technologies. A main reason for this problem is insufficient investments in research and development (R&D) activities by Chinese firms. Because of the potential externality and free-rider effects, the economics literature has long suggested that the private sector tends to underinvest in R&D without governmental interventions. The weak protection of intellectual property rights in China makes the problem of underinvestment in R&D even worse. In this situation, it becomes increasingly important for the government to provide incentives such as subsidies on R&D investments, given that R&D investments are critical to the development of new technologies and the sustainable growth of the economy. In this study I investigate how governmental subsidies on R&D influence Chinese firms’ R&D investments and performance. Specifically, I want to find out (1) whether governmental subsidies promote or hinder firms’ R&D investments, and (2) whether governmental subsidies have differential effects on financial performance across different types of firms. My goal is to better understand the effects of governmental subsidies on Chinese firms. To achieve this goal, I first conduct an extensive review of the relevant literature and then develop a conceptual model about the determinants of governmental subsidies on R&D in China. Next, I conduct empirical analysis using data collected from all the firms listed in the Shanghai Stock Changes and Shenzhen Stock Exchanges during the period of 2009 to 2012. Overall, my findings show that governmental subsidies on R&D have a positive impact on R&D investments by the listed firms. Meanwhile, I find that this positive impact varies significantly across different types of firms, particularly among firms that are still largely owned by the state. I conclude this study with a discussion of its implications for governmental policies on R&D investments. / Dissertation/Thesis / Doctoral Dissertation Business Administration 2015

This paper examines the effect of Business Tax to Value-Added Tax Reform (B2V Reform) of 2016 on the tax burden and research and development activities of High and New Technology Enterprises (HNTEs) in China. The initial hypothesis is that the B2V reform decreases tax burdens and encourages R&D activities of HNTEs. After analyzing the data from the Shanghai Stock Exchange High and New Technology Enterprise Index, however, it is found that the Reform does not significantly affect either the tax burdens or the R&D activities. Subsequent research reveals several explanations for the discrepancy, including firms’ labor-heavy capital structures for which labor costs do not qualify for value-added tax deductions as well as the issue of unused tax deductions from fixed asset purchases. This study informs policy makers how to revise and improve the reform to benefit high-tech companies with labor-intensive capital structures and others with significant upfront investment costs.

Submitted by JOSIANE SANTOS DE OLIVEIRA (josianeso) on 2017-06-26T13:13:02Z No. of bitstreams: 1 Daniel Seleme Dora_.pdf: 433008 bytes, checksum: e182890c33d774182153536a860fceb5 (MD5) / Made available in DSpace on 2017-06-26T13:13:02Z (GMT). No. of bitstreams: 1 Daniel Seleme Dora_.pdf: 433008 bytes, checksum: e182890c33d774182153536a860fceb5 (MD5) Previous issue date: 2017-05-20 / Nenhuma / O objetivo desse trabalho é analisar qual a influência da taxa de câmbio como um mecanismo na estratégia de aumentar os projetos de pesquisa e desenvolvimento no Brasil. A fim de realizar essa verificação, é feita uma contextualização sobre a variável macroeconômica câmbio, os investimentos diretos externos, o ecossistema de inovação e os investimentos externos em inovação. Feita essa primeira etapa é realizado um estudo de múltiplos casos em cinco multinacionais com atividades de pesquisa e desenvolvimento no Brasil para se compreender quais são os fatores e condições necessários para que os projetos sejam realizados aqui. Como resultado, se encontrou estratégias e fatores semelhantes em todas as empresas e suas condições para realização de P&D no Brasil. Não foi encontrada uma importante influência da taxa de câmbio na tomada de decisão, e sim, a influência da existência de conhecimento e mão de obra qualificada. / The objective of this work is to verify the influence of the exchange as a mechanism in the strategy to increase the research and development projects in Brazil, to do this verification its made a contextualization on the macroeconomic variable exchange rate, the foreign direct investments, the innovation ecosystem and external investments in innovation, after this first step, is carried out a study of multiple cases in five multinationals with research and development activities in Brazil to understand what are the factors and conditions necessary for the projects to be done here. As a result, we found similar strategies and factors in all companies and their conditions for conducting R&D in Brazil, we did not find an important influence of the exchange in decision making but rather influence of the existence of knowledge and skilled labor.

Submitted by Cristiane Oliveira (cristiane.oliveira@fgv.br) on 2011-06-03T15:32:55Z No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-03T16:43:34Z (GMT) No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Approved for entry into archive by Vera Lúcia Mourão(vera.mourao@fgv.br) on 2011-06-03T16:57:44Z (GMT) No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) / Made available in DSpace on 2011-06-03T17:04:48Z (GMT). No. of bitstreams: 1 66080100256.pdf: 1176091 bytes, checksum: fcc0a2692cf5fd1eb1a05eb610c446c2 (MD5) Previous issue date: 2011-01-14 / After the deep financial crisis in 2008, there has been an increasing questioning of the Firm’s objectives and its relationship with the financial markets. There is a paradox between the current practice of maximizing financial short-term performance of organizations, demanded by financial agents to corporate executives, and the financial concept of valuation of the Firm, which considers Firm value as the present value of discounted future cash flows. Therefore, according to the maximizing value proposition the Firm's objective is to increase its long-term total value (Jensen, 2000). The primary function of marketing strategies, innovations (R&D investments) included, is to generate both growth and consistent long-term business, i.e. the expansion of intangible assets to generate tangible assets. Based on the conceptual framework of Market-based Assets (Srivastava, Shervani and Fahey 1998), this paper seeks to contribute to the subject by proposing simple metrics, the adjusted performance indexes of retail sector, the Customer Average Ticket (TMC) and the Customer Average Ticket Earnings (LTMC). These metrics could relate investments in marketing to the value of the Firm (shareholder value) through the variation in quality of the company's customer base, which is the source of revenue generation and part of the intangible assets. For empirical tests, this study used data from the following publicly companies listed in Bovespa (São Paulo Stock Exchange): Sadia and Perdigao, belonging to the food processing sector, in the period of 1999 to 2010, and also the air line companies TAM and Gol in the period of 2004 to 2010. The tests were inconclusive, due to certain data limitations, not allowing proving or ruling out the tested hypotheses. But the logical line and simplicity of the method should be explored by future studies. If the method could be confirmed and proven, it would provide all agents (marketing executives, CEOs and CFOs, market analysts and investors) with a simple and objective tool for analysis and way of communication about the value creation of Marketbased Assets (intangible assets) that impact the total Firm value. / Após a profunda crise financeira de 2008, houve um aumento do questionamento sobre os objetivos da Firma e a sua relação com os mercados financeiros. Existe um paradoxo entre a prática corrente de maximização da performance financeira de curto-prazo da organização, demandada pelos agentes financeiros aos executivos das empresas, e o próprio conceito financeiro de valoração da Firma., que considera como valor da Firma o valor presente dos fluxos de caixa futuros descontados. Portanto, segundo a proposição de maximização de valor, o objetivo da Firma é aumentar o seu valor total de longo prazo (JENSEN, 2000). É função primordial das estratégias de marketing, aí incluídos os investimentos em inovação (P&D), o objetivo de gerar crescimento e consistência de longo prazo do negócio, isto é, a ampliação dos ativos intangíveis para gerar ativos tangíveis. Norteado pela estrutura conceitual de Ativos base Mercado (SRIVASTAVA; SHERVANI; FAHEY, 1998), o presente trabalho busca contribuir para o tema, com uma proposição de métricas simples, adaptadas de índices de desempenho do setor varejo, o Ticket Médio Cliente (TMC) e o Lucro Ticket Médio Cliente (LTMC), que possam relacionar os investimentos em marketing e o valor da Firma através da variação da qualidade da base de clientes da empresa, que é a fonte de geração de receitas e parte dos ativos intangíveis. O estudo utilizou para os testes empíricos dados das seguintes empresas, com ações negociadas na Bovespa: Sadia e Perdigão, pertencentes ao setor de alimentos processados, de 1999 a 2010, e também as companhias aéreas TAM e Gol no período de 2004 a 2010. Os testes não foram conclusivos, devido a determinadas limitações dos dados, não permitindo provar ou descartar as hipóteses testadas. Porém a linha lógica e a simplicidade do método deveriam ser exploradas por estudos futuros, pois se confirmado e provado, forneceria uma ferramenta simples e objetiva de análise e comunicação por parte de todos os agentes envolvidos (executivos de marketing, diretores financeiros e presidentes, analistas de mercado e investidores), com relação à criação de valor de Ativos base Mercado (ativos intangíveis) que impactam o valor da Firma.