168 The Impact of the Act for the Development of Biotech and New Pharmaceuticals Industry on Firm Innovation in Taiwan biopharmaceutical firms have lower R&D investment than the high-tech firms. In addition, the significantly positive coefficients of the interaction term, After×Treatment, show that compared with high-tech firms, approved biopharmaceutical firms increase R&D investment significantly after the Biopharmaceutical Act. Thus, these findings demonstrate that compared with high-tech firms, approved biopharmaceutical firms are more encouraged to increase R&D investment by the act. Table 8 DID Regression Results: Inter-industry Analysis Panel A: DID Regression Results for R&D Investment: Inter-industry Analysis One Matched Firm Two Matched Firms Three Matched Firms Four Matched Firms (1) (2) (1) (2) (1) (2) (1) (2) Aftert -1.4188 -1.3626 -2.1960*** -2.0770*** -0.6735 -0.4862 -0.0277 -0.0959 (0.1807) (0.1992) (0.0045) (0.0072) (0.2655) (0.4217) (0.9633) (0.8731) Treatmenti -3.1875*** -3.4854*** -3.3959*** -3.8954*** -1.9565*** -2.7109*** -1.8821*** -2.9477*** (0.0005) (0.0003) (0.0000) (0.0000) (0.0059) (0.0003) (0.0093) (0.0001) Aftert × Treatmenti 3.1546** 3.1323** 3.6625*** 3.5871*** 2.3407** 2.2497** 1.9755** 1.9896** (0.0152) (0.0159) (0.0011) (0.0014) (0.0177) (0.0223) (0.0398) (0.0376) LN (TA)t -1.3558*** -1.3851*** -1.3597*** -1.3622*** -0.7284*** -0.7405*** -0.6099*** -0.6238*** (0.0002) (0.0001) (0.0000) (0.0000) (0.0007) (0.0006) (0.0012) (0.0009) RDt-1 0.4578*** 0.4547*** 0.5330*** 0.5273*** 0.5851*** 0.5758*** 0.6133*** 0.5999*** (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) ROAt -0.2356*** -0.2389*** -0.1988*** -0.2055*** -0.1721*** -0.1812*** -0.1725*** -0.1841*** (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) Debt Ratiot -0.0132 -0.0257** -0.0361*** -0.0481*** (0.2954) (0.0148) (0.0000) (0.0000) Observations 1,489 1,489 2,334 2,334 3,256 3,255 4,154 4,153 Adjusted R2 0.4900 0.4901 0.5243 0.5253 0.5226 0.5250 0.5496 0.5538 Panel B: DID Regression Results for Adjusted Patent Citations: Inter-industry Analysis One Matched Firm Two Matched Firms Three Matched Firms Four Matched Firms (1) (2) (1) (2) (1) (2) (1) (2) Aftert -0.0617** -0.0618** -0.0734*** -0.0724*** -0.0439* -0.0409 -0.0342* -0.0315 (0.0165) (0.0189) (0.0052) (0.0057) (0.0756) (0.1002) (0.0967) (0.0507)
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