PTE, innovation capital and firm value interactions in the biotech medical industry

Unlike previous studies which only focus on the main effect between IC and FV, this research includes PTE with the gap of resource-based view. IC is a key element in creating a competitive advantage, as it has a great influence on FV. A company may put relatively less into IC if it demonstrates higher efficiency. However, previous studies have neglected the fact that relative efficiency and IC affect FV and stock returns directly and indirectly. The research period was from 2006 to 2010 and the main research methods include HRA and DEA. The main research findings include the following. (1) There is a space for improvement in terms of the total technical efficiency. (2) PTE has a significant moderating effect between IC and FV. (3) IC and PTE have a significant influence on FV. (4) Apart from PTE and stock returns, IC and FV show significant differences within the sub-industry.