EconPapers    
Economics at your fingertips  
 

The productivity of Chinese patents: The role of business area and ownership type

Demetris Christodoulou, Baruch Lev and Le Ma

International Journal of Production Economics, 2018, vol. 199, issue C, 107-124

Abstract: China's unrivalled growth in patent filings and grants, enhanced by government policy, reflects a strategic shift in transforming a labour-intensive economy to an innovation-driven incentives system. This study employs a patent dataset from SIPO to examine the productivity of Chinese patents in improving public firm financial performance. Evidence suggest an overall positive performance elasticity to patent production particularly among firms with efficiency-driven and customer-focused operating activities. Patents are found to have no impact or even negative impact on financial performance in other business areas. Patents generally exhibit a constant return to scale and appear as a complementary input to physical assets but a substitute to labour. Non-state owned public firms have performed consistently well throughout, regardless the policy changes. The productivity of granted patents of state owned firms has improved following the introduction of government reforms specifically aimed at promoting innovation.

Keywords: China; Patents; Firm performance; Government policy (search for similar items in EconPapers)
JEL-codes: O33 O38 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527317304309
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:199:y:2018:i:c:p:107-124

Access Statistics for this article

International Journal of Production Economics is currently edited by R. W. Grubbström

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-05-05
Handle: RePEc:eee:proeco:v:199:y:2018:i:c:p:107-124