Marija Jovanović, Bojan Krstić, Tamara Radjenović

DOI Number
First page
Last page


The purpose of the work is to determine the impact of R&D activities and patent activity on the business performance of high-tech companies with the largest number of patent applications according to the records of the World Intellectual Property Organization (WIPO).

The research sample consists of 33 high-technology companies that were continuously on the WIPO's Top 50 PCT applicants list in the period from 2013 to 2020. Regression analyses have been performed to determine the impact of R&D activity and patent activity on the business performance of high-technology companies.

The research confirms the importance of R&D and patent activity for the business performance of high-technology companies. This study revealed that R&D investment, number of granted patents and published PCT applications have a positive influence on sales revenue, gross profit, operating profit, earnings before interest and taxes, earnings before interest, taxes, depreciation, and amortization, market capitalisation. The positive influence of patent activity indicators on return on equity is also present; however, the influence of R&D investment on return on equity is negative.

The research results have significant implications for R&D, intellectual property and corporate managers of high-tech companies in terms of significantly improving the efficiency of R&D investments and their impact on company’s profitability. Also, there are significant implications related to improving the effectiveness of the innovation process and patent activity and their impact on other business performance.

The originality of this study is reflected in studying the influence of patent activity indicators on gross profit, earnings before interest and taxes, earnings before interest, taxes, depreciation, and amortization, and return on equity.


R&D activity, patent activity, business performance, high-technology companies

Full Text:



Andries, P., & Faems, D. (2013). Patenting activities and firm performance: does firm size matter?. Journal of Product Innovation Management, 30(6), 1089-1098.

Artz, K. W., Norman, P. M., Hatfield, D. E., & Cardinal, L. B. (2010). A longitudinal study of the impact of R&D, patents, and product innovation on firm performance. Journal of product innovation management, 27(5), 725-740.

Blind, K., Cremers, K., & Mueller, E. (2009). The influence of strategic patenting on companies’ patent portfolios. Research Policy, 38(2), 428-436.

Blind, K., Edler, J., Frietsch, R., & Schmoch, U. (2006). Motives to patent: Empirical evidence from Germany. Research policy, 35(5), 655-672.

Bosworth, D., & Rogers, M. (2001). Market value, R&D and intellectual property: an empirical analysis of large Australian firms. Economic Record, 77(239), 323-337.

Bronwyn, H., Griliches, Z., & Hausman, J. (1986). Patents and R and D: Is There a Lag?. International Economic Review, 27(2), 265-283.

Cho, H.-J., & Pucik, V. (2005). Relationship Between Innovativeness, Quality, Growth, Profitability, and Market Value. Strategic Management Journal, 26(6), 555-575.

Comanor, W. S., & Scherer, F. M. (1969). Patent statistics as a measure of technical change. Journal of political economy, 77(3), 392-398.

Czarnitzki, D., & Kraft, K. (2010). On the profitability of innovative assets. Applied economics, 42(15), 1941-1953.

Ernst, H. (1995). Patenting strategies in the German mechanical engineering industry and their relationship to company performance. Technovation, 15(4), 225-240.

Ernst, H. (2001). Patent Applications and Subsequent Changes of Performance: Evidence from Time-Series Cross-Section Analyses on the Firm Level. Research Policy, 30(1), 143–157.

Garavito Hernandez, Y., & Rueda Galvis, J. F. (2021). Innovation and patents as a business success factor. Journal of Economics, Finance and Administrative Science, 26(51), 143-159.

Griliches, Z. (1981). Market Value, R&D and Patents. Economics Letters, 7(2), 183-187.

Griliches, Z., Hall, B. H., & Pakes, A. (1991). R&D, patents, and market value revisited: is there a second (technological opportunity) factor?. Economics of Innovation and new technology, 1(3), 183-201.

Gujarati, D.N. (2004). Basic econometrics. New Delhi: Tata McGraw Hill.

Hagedoorn, J., & Cloodt, M. (2003). Measuring innovative performance: is there an advantage in using multiple indicators?. Research Policy, 32(8), 1365-1379.

Hall, B. H., & MacGarvie, M. (2010). The private value of software patents. Research Policy, 39(7), 994-1009.

Hall, B.H., Jaffe, A., & Trajtenberg, M. (2005). Market value and patent citations, The Rand Journal of Economics, 36(1), 16-38.

Hunady, J., Pisar, P., & Durcekova, I. (2020). R&D Investments in the European ICT Sector: Implications for Business Performance. Business Systems Research, 11(3), 30-44.

Janjić, I., & Rađenović, T. (2019). The importance of managing innovation in modern enterprises. Ekonomika, 65(3), 45-54.

Jovanović, M., Krstić, B., & Berezjev, L. (2022). Green patents as a determinant of sustainable economic growth. Economics of Sustainable Development, 6(2), 1-15.

Krstić, B. (2022). Upravljanje poslovnim performansama [Business performance management]. Niš: Ekonomski fakultet.

Krstić, B., & Jovanović-Vujatović, M. (2022). Open innovation strategy as a determinant of sustainable enterprise competitiveness. Economics of Sustainable Development, 6(1), 25-34.

Lee, B., Cho, H. H., & Shin, J. (2015). The relationship between inbound open innovation patents and financial performance: Evidence from global information technology companies. Asian journal of technology innovation, 23(3), 289-303.

Lee, K. H., & Yoon, B. S. (2006). The Effects of Patents on Firm Value: Venture vs. non-Venture. Journal of Technology Innovation, 14(1), 67-99.

MacDonald, S. (2004). When Means Become Ends: Considering the Impact of Patent Strategy on Innovation. Information Economics and Policy, 16(1), 135-158.

Mann, R. J., & Sager, T. (2007). Patents, Venture Capital and Software Start-ups. Research Policy, 36(2), 193-208.

Mansfield, E. (1986). Patents and Innovation: An Empirical Study. Management Science, 32(2), 173-181.

Nerkar, A., & Roberts, P. W. (2004). Technological and product-market experience and the success of new product introductions in the pharmaceutical industry. Strategic Management Journal, 25(8-9), 779-799.

Neuhäusler, P., Frietsch, R., Schubert, T., & Blind, K. (2011). Patents and the financial performance of firms-An analysis based on stock market data (Fraunhofer ISI Discussion Papers-Innovation Systems and Policy Analysis, No. 28). Karlsruhe: Fraunhofer Institute for Systems and Innovation Research ISI.

Oh, J. Y. (2003). An analysis on factor of company’s industrial property right affecting the company’s development. Master’s thesis. Yonsei University.

Pakes, A. (1985). On patents, R&D, and the stock market rate of return. Journal of political economy, 93(2), 390-409.

Paula, F. D. O., & Silva Rocha, R. J. (2021). The effect of R&D investments and patents on the financial performance of Latin American Firms. Latin American Business Review, 22(1), 33-52.

Rađenović, T., Krstić, B., Janjić, I., & Jovanović-Vujatović, M. (2022). The effects of R&D performance on the profitability of highly innovative companies. Strategic Management, (Online First).

Scherer, F. M. (1965). Corporate inventive output, profits, and growth. Journal of political economy, 73(3), 290-297.

Wang, C. H, Lu, Y. H., Huang, C. W., & Lee, J. Y. (2013). R&D, productivity and market value: An empirical study from high-technology firms. Omega, 41(1), 143-155.

Wesley, L. H., & Wonglimpiyarat, J. (2020). R&D Investments and Strategic Use of Financial Models. International Journal of Innovation and Technology Management, 17(4), 1-28.

Xu, X., Chen, X., Zhu, Y., & Zhu, Y. (2022). The Effect of R&D Input on Operating Income of Chinese Wastewater Treatment Companies—With Patent Performance as a Mediating Variable. Water, 14(6), 836.

Yang, C., Hong, J. W., & You, Y. Y. (2021). An empirical study on the influence of patents on the management performance of corporates. Ilkogretim Online, 20(3), 776-783.

Yun, J. J., Jin, S., & Kim, D. (2021). The Effects of Patents on the Relationship between R&D Activities and Business Management Performance: Focus on South Korean Venture Companies. Journal of Open Innovation: Technology, Market, and Complexity, 7(4), 210.



  • There are currently no refbacks.

© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)