The impact of intellectual property protection on the development of artificial intelligence in enterprises

Qifeng Han, Chunhui Li and Yulu Jin

International Review of Financial Analysis, 2025, vol. 105, issue C

Abstract: Artificial intelligence (AI) technology plays a crucial role in advancing China's high-quality economic development, while intellectual property (IP) protection has a strong influence on enterprises' AI development (AID). Using data from A-share companies listed on the Shanghai and Shenzhen stock exchanges in China from 2009 to 2022, this study employs a time-varying difference-in-differences model to investigate the impact of IP demonstration city policies on enterprises' AID. The key findings are threefold: (1) IP demonstration city laws and policies significantly promote enterprises' AID. (2) These laws and policies facilitate enterprises' AID by reducing regional institutional transaction costs, enhancing corporate innovation vitality, and optimizing enterprises' resource allocation efficiency. (3) The incentivizing effect of IP demonstration city laws and policies on AID is more pronounced for state-owned enterprises, enterprises in the high-tech industry, and in areas with a high degree of marketization. The conclusions of this study provide robust empirical support for the technological dividends of IP protection and can serve as an important reference for further enhancing the evidence-based accuracy of decision-making concerning IP reforms.

Keywords: Intellectual property demonstration city legal policy; Artificial intelligence development; Institutional transaction costs; Innovative vitality; Resource allocation efficiency (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:105:y:2025:i:c:s1057521925002662

DOI: 10.1016/j.irfa.2025.104179

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