IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v34y2022i5-6p434-470.html
   My bibliography  Save this article

Venture capital investment, intellectual property rights protection and firm innovation: evidence from China

Author

Listed:
  • Di Guo
  • Kun Jiang

Abstract

We examine the heterogeneous effects of venture capital (VC) investment on firm innovation. Using a panel dataset of Chinese manufacturing firms, we find that VC-backed firms outperform non-VC-backed ones in patenting activities, new product sales, and exports because of the ex-ante selection and ex-post value-added effects of VC investment. Firms with better performance in innovation are more likely to get VC support, and such outperformance is magnified after the VC investment is made. Moreover, the impact of VC investment on firm innovation is greater when the protection of IPR is stronger. In addition, firms backed by more experienced VC firms (VCFs) generate more commercialized innovation but are less productive in patenting activities than firms backed by less experienced VCFs. Finally, firms backed by state-owned VCFs outperform in patenting activities but underperform in commercialized innovation those backed by other types of VCFs. Identification and selection issues are addressed by the propensity score matching approach and two-stage estimations.

Suggested Citation

  • Di Guo & Kun Jiang, 2022. "Venture capital investment, intellectual property rights protection and firm innovation: evidence from China," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 34(5-6), pages 434-470, May.
    • Handle: RePEc:taf:entreg:v:34:y:2022:i:5-6:p:434-470
    DOI: 10.1080/08985626.2022.2062618
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08985626.2022.2062618
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08985626.2022.2062618?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tang, Jinghua & Liu, Qigui, 2024. "R&D tax incentive policy, intellectual property right protection, and corporate innovation in an emerging market," Research in International Business and Finance, Elsevier, vol. 69(C).
    2. Pengfei Cheng & Mengzhen Wang & Baekryul Choi, 2024. "IPR Protection and Sustainable Economic Growth: Domestic R&D Level and International R&D Trade Cooperation Perspective," Sustainability, MDPI, vol. 16(14), pages 1-16, July.
    3. Maiti, Moinak, 2022. "Does development in venture capital investments influence green growth?," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    4. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:34:y:2022:i:5-6:p:434-470. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.