173 NTU Management Review Vol. 31 No. 2 Aug. 2021 Panel B.2 DID Regression Results for Adjusted Patent Citations in the Inter-industry Analysis: Large Firms One Matched Firm Two Matched Firms Three Matched Firms Four Matched Firms (1) (2) (1) (2) (1) (2) (1) (2) Aftert -0.0592 -0.0542 -0.1010 -0.1033 -0.0849 -0.0884 -0.1498* -0.1533* (0.6612) (0.6919) (0.3273) (0.3221) (0.2875) (0.2743) (0.0530) (0.0507) Treatmenti -0.2198* -0.1860 -0.1631 -0.1454 -0.0863 -0.0653 -0.0774 -0.0557 (0.0604) (0.1275) (0.1182) (0.1840) (0.3429) (0.4957) (0.4300) (0.5890) Aftert × Treatmenti 0.2257 0.2121 0.2477* 0.2510* 0.2144* 0.2166* 0.2586* 0.2550* (0.1509) (0.1921) (0.0794) (0.0873) (0.0850) (0.0948) (0.0539) (0.0685) LN (1+NetSalest-1) 0.0815*** 0.0842*** 0.0907*** 0.0916*** 0.0841*** 0.0859*** 0.0985*** 0.0999*** (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) (0.0000) RDt-1 0.0088** 0.0094** 0.0111*** 0.0114*** 0.0108*** 0.0111*** 0.0113*** 0.0113*** (0.0378) (0.0469) (0.0002) (0.0003) (0.0000) (0.0000) (0.0000) (0.0000) Tobin’s Qt-1 -0.0028 -0.0051 -0.0049 -0.0036 (0.7623) (0.5588) (0.5331) (0.6696) Observations 545 536 840 824 1,132 1,107 1,433 1,402 Adjusted R2 0.1652 0.1639 0.1470 0.1470 0.1307 0.1318 0.1370 0.1377 Note: This table presents the panel regression results of subsamples divided by different firm sizes, including small and large firms in the inter-industry analysis. Panels A.1 and A.2 show the regression results that explain the R&D investment for small and large firms, respectively. Panels B.1 and B.2 show the regression results that explain the adjusted patent citations for these two subsamples. The dependent variable in Panels B.1 and B.2 is LN (1+adjusted patent citation). The regression is shown in equation (1) of Section 3.3.4. Aftert = 1 if the firm is in the approval year or after approval year and 0 otherwise; Treatmenti = 1 if the firm is in that treated group and 0 otherwise. The treated firms are approved biopharmaceutical firms and control firms are high-tech firms. The definitions of the variables are presented in Appendix Table A1. Numbers in parentheses are p-values. ***,**, and * denote significance at the 1%, 5%, and 10% levels, respectively. Panels B.1 and B.2 of Table 9 present the inter-industry subsample analysis of adjusted patent citations. There are insignificant coefficients of the interaction term for the small firms but marginally significant coefficients of the interaction term for the large firms. These results show that only in the large firm group, approved biopharmaceutical Table 9 DID Regression Result of Inter-industry: Subsample Analysis for Different Firm Size (cont.)

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