The impact of ESG engagement on corporate patenting strategy

Xuehui Zhang, Le Miao, Guoying Mu and Mingwen He

Finance Research Letters, 2025, vol. 79, issue C

Abstract: Using a sample of Chinese firms, we examine whether firms involved in ESG tend to choose an offensive patenting strategy of developing new patents to compete head-on with competitors, or a defensive patenting strategy of building a patent wall around existing core patents, based on the perspective of intrinsic linkages between patents. Our findings suggest that ESG engagement drives a firm to adopt a defensive patenting strategy. The effect is more salient for state-owned firms, manufacturing firms, and large firms. Additional analyses suggest that the underlying mechanisms are government subsidies, media attention, and financing constraints.

Keywords: ESG engagement; Patenting strategy; Offensive; Defensive (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005847

DOI: 10.1016/j.frl.2025.107321

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