Data and Empirical Methodology

This chapter outlines the procedures and methodologies employed as part of the empirical study. In doing so, it pursues a two-fold mission. First, details the approach taken in the present research project, including the choices made with regard to alternative data sources, statistical procedures etc. Second, it provides an overview of the data used in later analyses and specifies the relevant data characteristics, which helps to avoid a lengthy discussion of variables in the subsequent section. In sequence, it addresses the overall sample selection procedure (4.1), data coding (4.2), as well as event-study (4.3), and cross-sectional methods (4.4). Moreover, this chapter sheds some light on empirical specificities of the European biotechnology section, including a formal assessment of industry definition (subsection 4.1.1.2) and a time-series analysis of DBF stock returns (section 4.4.2).Subchapter 4.6 concludes.