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Intellectual property rights protection and total factor productivity

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  • Su, Zhongfeng
  • Wang, Chenfeng
  • Peng, Mike W.

Abstract

This study examines the role of intellectual property rights (IPR) protection in total factor productivity (TFP) in countries developed at different levels. By undertaking two tests using data of 1,696 observations across 95 countries during 2001–2018 and data of 906 observations covering 87 countries in the 1965–2015 period, we find that the linkage of IPR protection to TFP is negative in least-developed countries while inverted U-shaped in developing and developed countries. In addition, developed countries have the strongest IPR protection and least-developed countries offer the weakest protection, and the optimal IPR protection level for TFP in developed countries is greater than that in developing countries. This study enriches our knowledge of both antecedents of TFP and implications of IPR protection. It provides empirical support for the institution-based view of IPR history and extends the view to the context of developed countries. This study also informs policymakers the proper level of IPR protection if the goal is to promote TFP.

Suggested Citation

  • Su, Zhongfeng & Wang, Chenfeng & Peng, Mike W., 2022. "Intellectual property rights protection and total factor productivity," International Business Review, Elsevier, vol. 31(3).
    • Handle: RePEc:eee:iburev:v:31:y:2022:i:3:s0969593121001748
    DOI: 10.1016/j.ibusrev.2021.101956
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    References listed on IDEAS

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    Cited by:

    1. Chen, Wantao & Yu, Xiang & Yang, Wei, 2024. "Is worldwide patent protection converging? A cross-country index of patent protection strength 1990–2020," Technology in Society, Elsevier, vol. 76(C).
    2. Nie, Song, 2024. "Does intellectual property rights protection matter for low-carbon transition? The role of institutional incentives," Economic Modelling, Elsevier, vol. 140(C).
    3. Ke Mao & Pierre Failler, 2022. "Does Stronger Protection of Intellectual Property Improve Sustainable Development? Evidence from City Data in China," Sustainability, MDPI, vol. 14(21), pages 1-15, November.
    4. Ye Zhu & Minggui Sun, 2022. "The Enabling Effect of Intellectual Property Strategy on Total Factor Productivity of Enterprises: Evidence from China’s Intellectual Property Model Cities," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    5. Pengfei Cheng & Yuhao Wang & Mengzhen Wang, 2024. "Does intellectual property rights protection help reduce carbon emissions?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-15, December.
    6. Yuan Zhu & Bingyue Wan & Lixin Tian, 2022. "Protection of Intellectual Property Rights, Financial Development and Green Low-Carbon Endogenous Economic Growth," Sustainability, MDPI, vol. 14(20), pages 1-20, October.
    7. Gao, Peng & He, Ling & Hu, Shiyang & Xin, Qingquan, 2024. "Double-edged sword: Does strong creditor protection in the bankruptcy process affect firm productivity," International Review of Financial Analysis, Elsevier, vol. 95(PA).

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