the market valuation of young biopharmaceutical firms. We employ a non-linear model to
measure the impact of R&D, patents, alliances, organizational capital, and mergers on the
value of 349 newly-incorporated firms between 1980 and 2006. We find that, with the
exception of mergers, our measures of intangible capital have positive and significant effects
on market values; the impact of R&D declines as firms mature; and the omission of either …