During the business cycle, how the firms' marketing expenses affect the stock returns vary with economy condition. Although prior studies have focused on how change in advertising and research and development (R&D) affect firms during recessions, those studies ignored the interaction between advertising and R&D. Besides, prior studies in the economics field find that the macroeconomics factors will affect firm performance. Therefore, this paper investigates which macroeconomics factor will affect firms spending on advertising and R&D to increase stock return of firms during recessions based on controlling the interaction between advertising and R&D. We match the sample of NYSE-, AMEX-, and NASDAQ-listed firms that are specified as ordinary common shares with monthly returns from the Center for Research in Securities Prices (CRSP) and with advertising and R&D from the yearly merged COMPUSTAT data for 1990 to 2010. In addition, we use the Markov switching model to identify economy condition. Meanwhile we use the portfolio analysis to classify the firms into four portfolios and though the macroeconomic model to discuss which factors impact the excess return. This study finds that controlling the condition of R&D-intensive, the default spread and growth in money supply will both affect high advertising firms, more than low advertising firm in recessions. Moreover, controlling the condition of advertising-intensive, the default spread and growth in money supply will both affect high R&D firms more than low R&D firms in recessions. These consequences may result from that during the recession, the default spread will increase and the same time the investors will not prefer high advertising and R&D firms (risky assets). On the other hand, when government implements expansionary monetary policy, investors will prefer high advertising and R&D firms. In summary, this study discuss how the macroeconomic factors affect the excess return of portfolio during recessions based on controlling the interaction between advertising and R&D. Firms could use these results to improve the performances and increase the stock returns by adjusting their spending on advertising and R&D during recessions.

In this dissertation, I develop frameworks and models capturing the effects of marketing capital and R and D capital on firm growth and sustained membership in the Fortune 500 cohort. Drawing on the resource-based view (RBV) of the firm and industrial organization theories, in the first essay, I develop hypotheses on the relationships among a firm's marketing capital, R and D capital, key firm-specific and industry-specific factors and survival as a Fortune 500 firm. I test these hypotheses using a proportional hazard model on a uniquely compiled large panel data set of manufacturing Fortune 500 firms over a 25-year period. The results show that while both marketing and R and D capitals have significant and direct positive associations with survival as a Fortune 500 firm, the moderating effects of industry growth on the relationships between marketing capital and survival as a Fortune 500 firm and between R and D capital and survival as a Fortune 500 firm is asymmetric. It is positive for marketing capital but negative for R and D capital. Thus, to retain firms‘ position on the Fortune 500 list, managers may want to consider investing more in marketing (R and D) when industry growth is high (low). In the second essay, I examine the effect of advertising capital and R and D capital, their complementarities, and their interactions with the environmental contingency factors of dynamism, munificence, and complexity on sales growth, profit growth, and market value growth. Using dynamic panel data analysis of 185 firms over an eight year period (2000-2007), I uncover a nuanced understanding of how advertising and R and D capital affect these performance measures. My results show that both R and D capital and advertising capital directly affect sales growth, but neither has a direct impact on profit growth. Furthermore, R and D capital has a direct impact on market value growth. I also find that while the interaction of advertising capital and R and D capital does not directly affect sales growth or market value growth, it has a positive direct impact on profit growth. Finally, I find that environmental contingencies matter. For instance, environmental dynamism negatively (positively) moderates the relationship between R and D (advertising) capital and sales growth.

Abstract In an ideal world, the agents would write a contingent contract specifying exactly which outcome is to be implemented in each state. However, the bounded rationality, the contracting agents may be unable to define ex ante the contingencies, and the transaction costs, the costs result from the difficulty of foreseeing contingencies, writing and enforcing contract, will lead to R&D cooperative contracts incomplete essentially. When R&D cooperative contracts are incomplete, the contracting agents face the hazard of ex post opportunistic behavior: each agent may engage in inefficient R&D investment in an attempt to ¡§hold up¡¨ other agents and to obtain a large share of the available quasi-rents. The purposes of this dissertation are to show that the mechanism design to the hold-up problem may implement in incomplete R&D cooperative contracts. In chapter II, we assume that the agents commit not to renegotiate ex post and set up a sequential mechanism. Under this sequential mechanism, the seller (university) sends massages (seller¡¦s true type) to the buyer (firm) who receives the massages and decides whether he will challenge them. The monetary transfer from the buyer to the seller and the quality of trade are the function of agents¡¦ true type. The great merit of this mechanism is that the seller and the buyer play the subgame perfect equilibrium in which both of them announce truthfully. We release the assumption that the contracting agents commit not to renegotiate ex post in chapter III. Under the current legal system, there is nothing to stop buyers or sellers to prevent renegotiation of their original contract. More importantly, the agents will rationally anticipate any renegotiation and this will change the equilibrium strategies of the mechanism itself. According to proposition 3-2, we demonstrate that the direct-revelation mechanism with Rubinsteinian bargaining game induced buyer and seller both announcing honestly but the R&D investment offered by agents were lower than the first best. To avoid the effect generated by renegotiation, some economists argued that the contract in which either buyer or seller has all the ex post bargaining power can induce efficient investment, and thus can implement the first best. This argument contrasts to Aghion and Tirole(1986), for they argued that whether the buyer or the seller should own the innovation hinged on the marginal efficiency of the buyer¡¦s investment compared with that of the seller¡¦s effort. Hence, we accept the property rights concepts proposed by Barzel(1989) and show that the agents can actually raise their payoff by using a mechanism in which performs the function analogous to the real option.

¡@¡@At present, the essence situation of biotechnology industries in Taiwan lacks a market-oriented innovation system as sturdy as in advanced countries such as U.S.A., Canada, European Union, and Japan, et cetera. In the technology innovation processes including different gradations such as basic science, application research, technologies development and commercialization, all the R&D of biotechnology industries in Taiwan, ready for a innovation system, many strategies and projects with relation to R&D. However, in the commercialization gradation, having an unremarkable and approximate gap among biotechnology industries, venture capitals, authorities, academia, research institutes and corporations, with reciprocal effects to each other, that are inferior to these advanced countries. ¡@¡@The thesis research in estimating for the R&D performances of biotechnology industries in Taiwan, it makes use of the SPSS l0.0 and AMOS 5.0 for Windows to compute all raw data of sampling survey, after analyzing to demonstrate the structural equation modeling of estimating at the R&D performances of biotechnology industries of Taiwan, that the final result make sure of perfect goodness of fit for the model. The model could be transform into different structures to estimating at the R&D performances of all circles of biotechnology, to make up the gap between anticipated success and unexpected failure. ¡@¡@The conclusion reveals a special significance of business management, means that the R&D innovation system of biotechnology industries of Taiwan, should be operated in coordination with specific strategies and policies of the authorities, then certainty executing all science and technology projects to obtain the R&D performances in essence. In other words, the R&D innovation system of biotech industries of Taiwan still has many demands for investing more human resource, venture capital in R&D, having a well-arranged application for system resources, supplying the market with many well-appropriated laws and regulations, to communicating with international science and technology innovation systems in the world, et cetera. After accomplishing all as above, the R&D prospect of Taiwan¡¦s biotechnology industries will be well in the future.

Continuous research and innovation had played the most important role for an enterprise to maintain his competitive advantage and ensure his sustainability. However, new product life time is getting shorter as known, it¡¦s getting more and more customize-designed products, and the needed technology also upgrade quickly. In order to face the global competition as we are forced to, an enterprise have to develop a new product instantly according to customer need, and take a leading position in the market by well aligning with technology trend, integrating internal & external resources, and best utilizing own core competence. This study designs a framework for a research & development strategy planning and its process management by referring to a new business model. By case study methodology, it had been investigated how a global company practice with the 7 key success factors which had been designed in the framework. These key success factors are : 1.Globalization 2.Customer and partner relationship 3.New product concept and technology 4.Build a effective and more innovative organization 5,Project portfolio management 6.Excellent Business Balanced Scored Card 7.Apply continuous improvement methodology on research management. This study had also investigated the company¡¦s performance on his technology leadership, intellectual property & patent and new product development performance. It can be primary conclusion that a completely integral research & development strategy planning and intensive/systematic research & development process management will do help a enterprise to have competitive advantages. It¡¦s also observed this research & development framework is quite in line with new business model, and all concerned factors and its process are very similar, which means an new business model is also valid for innovation activities of a company, who should consider long term strategy, new product and market scope, differential basis, own core competence and strategic resources, value network of suppliers and partners, global sourcing by joint-development, merge and technology transfer in order to have the needed new technology so that can create the maximum benefit for company.

Many Taiwanese multinational corporation (MNC) increase the proportion of their foreign direct investment in R&D activities year by year. The companies investing in the advanced nations operate R&D activities in the local market obviously. Through this thesis, we desire to know the status of overseas R&D sites in these cases and their motives. Futhermore, we also want to discuss how they build up and operate these R&D sites. Due to much more innovative knowledge resources outside the parent country, Taiwanese companies need to globalize their R&D sites to acquire the R&D results; in addition, establish the network of overseas R&D sites makes MNCs to promote their products in the global market smoothly. However, MNCs have to disperse their corporate resources in diffirent locations, and give each site diffirent roles and tasks. Other important issues among these MNCs are how to manage these dispersed R&D sites to achieve the efficiency and the flexibility and what the strategies they consider. Overseas R&D activity of Taiwanese MNCs is still evolving, and Taiwanese companies have their particular background. In order to find out the causes of this situation, we used the case study approach. We selected the cases which had the complete building process of overseas R&D activities, and interviewed the top managers who had the experiences in the process to gather the materials. Besides, other second-hand materials are also providing us more information to comprehend our sample cases. We found that Taiwanese MNCs had diffirent motives in each stage. They need to respond to local market, and provide the commercial products rapidly. In addition, local technology and human resource are also the important wealth to strengthen headquarters¡¦ R&D capabilities. Under the consideration of speed, cost and competition, MNCs integrated the R&D resources of parent and host countries aggressively, and they had to think how to match the corporate strategy. Further, they tried to manage organizational information flows and coordinate these R&D activities. Moreover, using several kinds of communication patterns helps headquarters to understand and control overseas R&D activities, and makes R&D knowledge and experiences circulate inside the organization to stimulate organizational innovative capacity.

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

Fuzzy Analytical Network Process (fuzzy ANP) is a helpful approach for the selection cooperative R&D projects developed by firms in collaboration with government. A technical committee for Industrial Technology Development Program (ITDP) in Taiwan regularly evaluates and decides proper public subsidiary of cooperative R&D projects. In this paper, we first discuss important decision criteria and establish decision model for ITDP projects selection. We apply fuzzy ANP to integrate decisions of members in the technical committee. In addition, we use simulation to analyze how decisions of technical committee change. Our results indicate that scientific & technology merit criterion is most important considered in overall technical committees. Besides that, the project execution is more important criteria than potential benefits and project risk in ITDP selection. Generally speaking, the paper reveals below results: (1) the fuzzy ANP is an appropriate method in multi-criteria technology R&D projects selection; (2) the decisions of technical committee will change under different decision risk and different risk attitude; (3) the interviews of technical committee indicate that ITDP is very important policy for improvement firms¡¦ R&D abilities.

This objective of this research lies in probing into R&D personnel's professional passion of the Hi-Tech industry in Taiwan, and wants to study that R&D personnel's behavior to the thing that how oneself's represents passion for profession, and realize the results produced after understanding that influences the factor and behavior of the behavior to display, and probing into professional passion of R&D personnel¡¦s developing stage. The main conclusions of this research are as following¡G Sum up the motive force which puts incomes with passion, understand the forming influence factor of the professional passionate behavior and behavior result of supervening from it, and carry on the discussion to the professional passion development of the current situation of Taiwan. The meaning with professional passion is aggressive , disregards cost paying , glad sharing , professional curiosity and keeps improving this five behaviors type, and it is different to some extent between professional passion and profession commitment, the profession commitment accord with professional passion at least, but the professional committer can be called professional enthusiasm. In addition also find that the family studies the origin under positive helping hand, it is relatively high to produce the possibility with professional passion, but still need to consider the reverse side result that the family studies the origin. And current situation in Taiwan is because of the environment and system factors, the development space of professional passion is limited¡Fand improving current situation, it will contribute to the social progress of specialization and professionalism.

The motivation of capitalism society keeping to make progress is basis on innovation. The text is established in extended type of Cobb-Douglas production function to discuss if the relationship of long term balance existed between R&D capital stock and gross domestic production. First, Dickey and Fuller mentioned Augmented Dickey Fuller test (ADF test) to examine if all the variables possess unit root particularity. If they do, we can test them by Johansen¡¦s Maximum Likelihood Estimation (MLE) to make cointegration relation numbers and cointegration vectors. According them to describe the long term balance relationships between R&D capital stock and gross domestic production. Conclusion of the text , by ADF test to examine the macroeconomic variables of R&D capital stock and gross domestic production are time series. Johansen¡¦s MLE test examined there¡¦s one cointegration vector existed. Apparently the long term balance relationship existed between the R&D capital stock and the gross domestic production. And we can take the normalized cointegrating coefficients back to the Cobb-Douglas production function to recognize the R&D capital stock will be the positive function of the gross domestic production. Thus we can get in R&D expenses to make the economic growth.