This paper surveys recent findings about how the financial markets value the knowledge assets of publicly traded firms. The motivation for using market value equation to price knowledge assets is discusssed and the theory behind this equation is briefly presented. Then the empirical literature...

Paul A. David and Bronwyn H. Hall. <BR> JEL#: H41, H42, O31, O38<BR> Keywords: R&D, public goods, crowding out, spillovers, supply of scientists and engineers.<BR> This paper is a first step toward closing the analytical gap in the extensive literature on the results of interactions between public and...

The relative stock market valuation of the intangible asset created by R&D; investment in U.S. manufacturing firms has fallen from rough equality with ordinary tangible assets during the 1973-1982 period to about twenty to thirty percent of ordinary capital during the 1986-1990 period. At the...

R&D; tax policy in the United States during the 1980s is evaluated, with particular emphasis placed on quantifying the impact of the R&D; tax credit on the R&D; investment of manufacturing firms. Using publicly available data on R&D; spending at the firm level, I estimate an average tax price...

Hall (1993b) found that the market value of corporate R&D; relative to ordinary capital investment fell precipitously during the 1980s. The present paper examines this result more closely and finds that it was due both to an increase in the value of ordinary capital and to a steep decline in the...