What is the Value of an Innovation? Theory and Evidence on the Stock Market’s Reaction to Innovation Announcements

Courtesy of Thomas Chemmanur, Dongmei Li, Kevin Tseng, and Yu Wang Recently, there has been considerable interest among economists in stock market-based measures of the value of corporate innovations. For example, in a recent paper, Kogan, Papanikolaou, Seru, and Stoffman (2017) develop a new measure of the economic value of a corporate innovation by making […]