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Cracking down on the infringement and counterfeiting: Intellectual property rights and corporate innovation in China

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  • Chen, Jianqiang
  • Hsieh, Pei-Fang
  • Wang, Kun

Abstract

This study examines the impact of infringement and counterfeiting on the performance of corporate innovation. We use a quasi-natural experiment to examine the effects of the Chinese government's crackdown on intellectual property rights infringement and counterfeiting. We find that after the implementation, patent counts and citations significantly increased for companies in industries with a high risk of intellectual property violations or imitation by competitors, especially for financially strong and risk-taking firms. The event leads to more R&D investment and firms also prioritize invention patents over utility patents.

Suggested Citation

  • Chen, Jianqiang & Hsieh, Pei-Fang & Wang, Kun, 2023. "Cracking down on the infringement and counterfeiting: Intellectual property rights and corporate innovation in China," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002179
    DOI: 10.1016/j.frl.2023.103846
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    Citations

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    Cited by:

    1. Zheng, Panpan & Li, Zhen & Zhuang, Ziyin, 2023. "The impact of judicial protection of intellectual property on digital innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 58(PA).
    2. Yang, Wei & Wang, Xueke, 2024. "The impact of patent protection on technological innovation: A global value chain division of labor perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    3. Shahab, Yasir & Tianzi, Wang & Hussain, Tanveer & Kumar, Satish, 2023. "Foreign experience and audit report lag," Finance Research Letters, Elsevier, vol. 57(C).
    4. Weiting Wang & Yi Liao & Wenjing Shen, 2023. "The Impact of Online Anti-Counterfeiting on Channel Structure and Pricing Decisions," Sustainability, MDPI, vol. 15(10), pages 1-26, May.

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    More about this item

    Keywords

    Counterfeiting; Infringement; Intellectual property rights (IPRs); Innovation;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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