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Intellectual property protection and enterprise innovation: Evidence from China

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  • Song, Yan
  • Xiu, Yifan
  • Zhao, Mengyang
  • Tian, Ye
  • Wang, Jingyuan

Abstract

In this paper, we introduce a conceptual framework to scrutinize the non-linear correlation between intellectual property protection and enterprise innovation performance using panel data (2012–2020) from listed firms. The results exhibit an inverted U-shaped relationship of IPP on EIP. Our analysis underscores the important role of R&D intensity and disclosure quality in this relation, identifying them as potential transmission channels for IPP's effect on EIP. Furthermore, empirical evidence suggests that when companies are state-owned or located in innovative pilot cities, the inverse U-shaped relationship becomes more pronounced. Conversely, this relationship is significantly weakened in markets with lower levels of competition.

Suggested Citation

  • Song, Yan & Xiu, Yifan & Zhao, Mengyang & Tian, Ye & Wang, Jingyuan, 2024. "Intellectual property protection and enterprise innovation: Evidence from China," Finance Research Letters, Elsevier, vol. 62(PB).
    • Handle: RePEc:eee:finlet:v:62:y:2024:i:pb:s1544612324002836
    DOI: 10.1016/j.frl.2024.105253
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