 When your friend takes a fall: Spillovers of patent infringement lawsuits on firm innovation via cross-ownersXudong Tang and Lin Wang Economic Modelling, 2024, vol. 131, issue C Abstract: Patent infringement lawsuits profoundly affect firms' innovation decisions, but few studies explore their spillover effects. In this paper we examine whether patent infringement lawsuits affect innovation of firms not involved but sharing cross-owners with the involved. Using the PSM-DID method and Chinese A-share listed firms’ data from 2009 to 2020, we find that after sued cross-held firms encounter patent infringement lawsuits, uninvolved focal firms increase innovation investment significantly. Information transmission from cross-owners is the important mechanism. Additionally, when sued cross-held firms and uninvolved focal firms belong to the same dialect region, industry, or uninvolved focal firms are non-SOEs, the innovation spillovers of patent infringement lawsuits are more obvious. Finally, we show that after uninvolved focal firms promote innovation input, their current and future innovation output goes up as well. Our study reveals the innovation spillovers of patent infringement lawsuits and expands research on inter-firm interaction through cross-owners. Keywords: Patent infringement lawsuits; Firm innovation; Spillovers; Cross-owners (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:131:y:2024:i:c:s0264999323004091 DOI: 10.1016/j.econmod.2023.106597 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.