Skip to main content

How should firms carry out technological diversification to improve their performance? An analysis of patenting of Korean firms

Buy Article:

$47.50 plus tax (Refund Policy)

This research aims to analyze how a firm's technological diversification strategies influence its financial performances, in terms of 'technological diversification' in broad technology sectors and 'technological concentration' on its own core technology, especially in the case of Korean large firms. The data used in the analysis were panel data encompassing the years between 1990 and 2006, which linked Korean firms' patent information registered in the United States Patent and Trademark Office to the financial data of those firms collected from Korea Investors Service, Inc. (Kis-Value). For the estimation of the panel data, a fixed effect model, which considers the individual firms' own effect on the financial performance, was used. Tobin's q was used as a dependent variable representing firm performance, while 'broad technology diversity' and 'core technology diversity' were used as the focal explanatory variables. The results show that a firm seeking to have more technological assets should invest in a broad technological diversification strategy in its search for new business opportunities; it should likewise concentrate on the core technology in order to maintain its financial performance.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: Tobin's q; fixed effect model; patent; technological concentration; technological diversification

Document Type: Research Article

Affiliations: 1: Technology Management, Economics and Policy Program, Seoul National University, Seoul, Republic of Korea 2: Department of Industrial Engineering, Seoul National University, Seoul, Republic of Korea

Publication date: 2009-01-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more