Sample characteristics Variable Definition Means (S.D) PAT The number of successful patent 5.444 applications (41.399) RD R&D expenditure (NT$ million) 130.650 (564.797) SIZE The number of employees 1141.742 (1687.012) PCAP Capital Intensity: the ratio of 4.273 capital to employees (NT$ million/person) (6.461)
ADVR Advertisement Intensity: the ratio of 5.636 advertisement expenditures to sales (%) (17.335) PROFIT Profitability: the firm's post-tax 3.728 profitability (%) (18.795) Note: the means and standard deviations are calculated by pooling data for the 1991-2003 period.