Do personal data related innovation boost firm value?

 

Personal data is increasingly used in business value creation. Data from the years 2007–2014 suggest that firms’ personal data related innovations and knowledge stocks in technology domains of location-based services and artificial intelligence contributed substantially to firm value. The premiums gained from personal data related innovation were particularly significant for data giants holding knowledge stocks in the location-based service domain.

Empirical findings indicate that a strong positive relationship between personal data related knowledge stocks of the location-based services domain and firm value relates primarily to investor attention intensified during periods of media hype. The data provide new insights into the market valuation of intangible assets: investors seem to overweight more salient right tails of firms’ knowledge stocks of emerging technologies while neglecting salient left tails.

Publication info

Series
ETLA Muistio - ETLA Brief 66
Date
25.05.2018
Keywords
Firm value, data economy, personal data, innovation, investor attention, technology salience
ISSN
2323-2463
Jel
D22, G41, L2, O3
Pages
9
Availability
Available
Language
Finnish