Managerial ability, intellectual property rights, R&D: does firm age play a role?

Sewpersadh, N.S. and Dalwai, T. ORCID: 0000-0001-5754-5384, 2024. Managerial ability, intellectual property rights, R&D: does firm age play a role? Competitiveness Review, 34 (7), pp. 61-87. ISSN 1059-5422

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Purpose: The interplay between individual and collective creativity and its translation into innovation is a critical yet complex challenge in the ever-evolving innovation landscape. This study delves into the intricate relationship between managerial ability, intellectual property rights (IPRs) and research and development (R&D) investments contextualized within the dynamics of leverage, firm life stages and tangibility for pharmaceutical firms in the Asia-Pacific region. By exploring how micro-level factors influence macro-level innovation processes, this study aims to contribute to the broader understanding of creativity and innovation, a theme at the heart of addressing contemporary global challenges.

Design/methodology/approach: Econometric methodologies were used to analyse a data set comprising 2,660 firm-year observations spanning the decade from 2011 to 2020.

Findings-A key finding was that companies with lower managerial prowess strategically leverage R&D intensity to signal their value to the market and accrue reputational currency. The research unearths a significant positive relationship between managerial ability, IPRs and R&D investment. In environments characterized by strong managerial acumen and robust IPR safeguards, firms exhibit a heightened propensity to allocate resources to R&D endeavours. This underscores the role of intellectual leadership and legal protections in shaping R&D strategies within the pharmaceutical domain. Incorporating firm life stages as a moderating factor reveals that firm maturity fundamentally influences the interplay between managerial ability, IPRs and R&D expenditure.

Originality/value: These findings’ implications resonate profoundly within policy-making circles and pharmaceutical firms’ day-to-day operational strategies, underscoring the pivotal role of intellectual capital and legal safeguards in shaping the future of innovation in the Asia-Pacific pharmaceutical sector.

Item Type: Journal article
Publication Title: Competitiveness Review
Creators: Sewpersadh, N.S. and Dalwai, T.
Publisher: Emerald
Date: May 2024
Volume: 34
Number: 7
ISSN: 1059-5422
Divisions: Schools > Nottingham Business School
Record created by: Jonathan Gallacher
Date Added: 23 May 2024 16:06
Last Modified: 23 May 2024 16:06

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