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How does the exclusive license stimulate firm’s subsequent innovation? The role of innovation financial input

Dongyang Zhang, Rui Guo and Xiaodan He

Research in International Business and Finance, 2022, vol. 60, issue C

Abstract: We study the influence of an innovation policy tool, namely, an exclusive license on firm innovation. Based on an extensive dataset of Chinese high-tech firms, we show that exclusive licenses significantly promote firm innovation output. Further, from our results, we conclude that the most efficient duration of exclusive license policies on promoting innovation is roughly three years. Mechanism analysis also reveals that the positive effects of exclusive license on innovation come from stimulating firm innovation financial input. Our findings extend the literature on innovation drivers, and provide a useful reference for other emerging economies to formulate more effective innovation strategies.

Keywords: Exclusive license; Subsequent innovation; Financial constraint; Zhongguancun science park; High-tech firms (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1016/j.ribaf.2021.101601

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