This research conducted to analyze whether firm innovation having
positive impact for the firm value in Indonesia. Innovation is measured using
R&D expenditure, while firm value is measured using Tobin's Q ratio. The
research uses purposive sampling method to analyze manufacturing sector listed
on the Indonesia Stock Exchange with the observation year 2019-2021. This
research using multiple linear regression method. The results of this study state
that firm innovation has a positive effect on firm value.