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Quantifying Company Innovation Ability using lagged RnD/Sales

Source: http://www.people.hbs.edu/cmalloy/pdffiles/dimalco.pdf

Research paper says 0.11 abnormal returns. You can get a higher alpha if you tune lookback properly.

Using other fundamentals have been tried, but not as successful as lagged RnD.

But I'm skeptical about that statement. I'm pretty sure you can try lagged CapEx/Sales or SG&A/Sales (Marketing, mostly)