Medical Device ; Small and Mid-Sized Businesses ; R&D ; Patents ; Corporate Performance
Abstract
Companies conduct R&D for continuous development and enhancement of corporate value, and obtain
patents as an intangible asset resulting from this process. This study screened 103 medical device firms whose R&D
information, patent information, and management performance information were all published to determine how R&D
activities and patents affect corporate operational performance. The number of patents, R&D costs, company type and
Inno-Biz of the company were set as independent variables, and the companies' sales, intangible assets, operating
profit ratios, net profit margins, corporate ratings and profit-related financial ratios were used as dependent variables.
The results confirmed that R&D expenditure had negative (-) effects on most indicators, including sales volume,
operating profit ratio, and net profit ratio, while it had positive (+) [ED highlight - these are unnecessary if negative
and positive are also written out.] effects only on intangible assets. Additionally, domestic patents were found to have
negative (-) effects on sales, cash flow ratings, and dropped capital return, and positive (+) effects on net profit
growth. Moreover, the business performance variables affected by the company characteristics were sales volume and
cash flow ratings. The medical device industry is dominated by small and medium-sized businesses Although research
and development activities and patents have been shown to have a negative impact on corporate management in the
short term, they are expected to have a positive long-term impact when reflecting the characteristics of the medical
device industry that must undergo clinical trials and authorization procedures after R&D.