To what extent (and when) do design activities contribute to the value of the firm? An empirical analysis relying on longitudinal firm level data (2000-2015)

In the past decades design has been advanced as important to consider (besides R&D expenditures and investments in technology/patents) in relation to firms’ financial performance and competitiveness. The recent literature however remains inconclusive in terms of the impact of design activities on value creation dynamics at the firm level, within and across different industries. While design has been generally considered as especially relevant for mature industries, the growth in design-intensity of certain ‘high tech’ industries (e.g. electronics) suggests wider relevance. Whereas recent studies indicate inter-dependencies between technological developments (utility - function) and design choices (form) at the industry level, the extent to which pursuing both types of activities results in value creation at the firm level remains unclear. This research project aims to provide new, large-scale empirical evidence on the impact of design activities at the level of the firm in two steps. First, contrary to most previous studies that rely on cross-sectional and/or survey data this study will exploit a longitudinal panel data set (firm level), consisting of USPTO patent data (both utility and design patents) and financial data to assess the impact on firm value across industries. Second, it will examine whether and to what extent developments on the level of function and form that are pursued jointly affect value creation dynamics at the firm level.