Abstract
What determines the productivity of firms? Firm productivity is improved by technology or efficiency. Patents are one critical indicator of a firm’s technology or efficiency. In economics, production is generally described as a function of capital and labor called the production function. In this study, we analyze the relationship between patents and productivity through the production function. We classified firms by their capital and their number of employees and confirmed that patents are correlated with firm productivity that have large capital and many employees.
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Acknowledgments
The authors thank the Saha Institute of Nuclear Physics, where this work was presented for “ECONOPHYS-KOLKATA VIII” as well as Prof. H. Aoyama for many useful discussions and comments about spurious correlations. This work was supported in part by a Grant-in-Aid for Scientific Research (C) (No. 24510212) from the Ministry of Education, Culture, Sports, Science and Technology, Japan. T. M. was supported in part by a Grant-in-Aid for Young Scientists (B) (No.24710156).
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Fujimoto, S., Ishikawa, A., Mizuno, T., Watanabe, T. (2015). Are Firms that Are Awarded More Patents More Productive?. In: Abergel, F., Aoyama, H., Chakrabarti, B., Chakraborti, A., Ghosh, A. (eds) Econophysics and Data Driven Modelling of Market Dynamics. New Economic Windows. Springer, Cham. https://doi.org/10.1007/978-3-319-08473-2_5
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DOI: https://doi.org/10.1007/978-3-319-08473-2_5
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