Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Marc Weidenmier

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© 2017 Alexander Choi


Innovation and technological improvements are essential components in generating growth. While this topic is well studied, limited research exists on the effectiveness of innovation and how it drives firm value. The 2008 Financial Crisis serves as a major historical event that significantly changed the economic environment in the US. Centering my analysis around this event, my study empirically examines the efficiency of innovation investments and industry-level stock returns. By taking patents issued as a percentage of R&D outlays, I measure Efficient Innovation—how effective a firm’s R&D is in generating significant innovative change.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.