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Human capital and trademarks: Evidence from higher education expansion in China

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  • Shu, Li
  • Wang, Wei

Abstract

This paper investigates how human capital affects trademark applications at the firm level. We adopt a difference-in-differences strategy to examine the impact of human capital on trademark applications, taking advantage of a unique natural experiment in China that expanded higher education enrollment substantially in 1999. We find firms in industries with higher human capital intensities filed for more trademarks after 2003 than they did in prior years. We then investigate the mechanism through which human capital enhancement causes more trademark applications. We find that firms in industries with higher human capital intensities tend to invest more in R&D and worker training programs. We next find that firms that spend more on R&D and training programs tend to develop more new products. We also find firms that have more new products file for more trademark applications. The main policy implication of our empirical results is that encouraging human capital enhancement can generate more innovative products and trademarks.

Suggested Citation

  • Shu, Li & Wang, Wei, 2023. "Human capital and trademarks: Evidence from higher education expansion in China," Research Policy, Elsevier, vol. 52(10).
    • Handle: RePEc:eee:respol:v:52:y:2023:i:10:s0048733323001531
    DOI: 10.1016/j.respol.2023.104869
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    More about this item

    Keywords

    Human capital intensity; Trademark applications; New products; Innovation;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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