14-622-158107802237-40-pvoa.pdf (329.72 kB)
Download fileMachine learning using instruments for text selection: Predicting innovation performance
In
machine learning we utilize the idea of employing instrumental variable such
as patent records to train the texts. Patent records are highly correlated
with R&D expenditures, but are not necessarily correlated with
performance residuals not linked to R&D. Thus, using instrumental patent
records to train word counts of selected texts to serve as a proxy for firm
R&D expenditure, we show that the texts and associated word counts
provide effective prediction of firm innovation performances such as firm
market value and total sales growth. |