New product: Research Quotient through WRDS
The IESE Library now has access to Research Quotient through Wharton Research Data Services (WRDS).
Research Quotient enables researchers to link R&D to firm growth and market value; derive optimal firm R&D spending; examine revenue generation from R&D and assess undervalued firms. Used for notable academic research on R&D, and developed by Anne Marie Knott, Professor of Strategy at Olin Business School, Washington University in St. Louis, RQ is key for R&D-related inquiries.
WHAT IS RQ?
Research Quotient = percentage increase in revenue from a 1% increase in R&D.
RQ is the output elasticity of R&D. RQ offers a universal, uniform, and reliable measure of a firm's R&D productivity.
• Link R&D spending to firm growth
• Link R&D spending to market value
• Derive a firm’s optimal R&D spending
• Predicts monthly returns
• Estimated for all firms conducting R&D
• Only 50% of firms patent their R&D
• Essentially, the ratio of inputs to outputs—interpretation is the same across all firms
• Compare firms across industries
Firm behavior and economic outcomes consistent with endogenous growth theory (and validated over 47 years):
• Optimal R&D increases in RQ
• Market value increases in RQ
• Firm growth increases in RQ
COVERAGE from 1972-2010
How to access to Research Quotient?
Access campus-wide and off campus, from the Databases page. You need to obtain your WRDS account.