Analysis on the Enterprises’ Innovation Quality Based on the Patent Value: A Comparison between Public and Private Enterprises in China

Dujuan Huang, Hongbo Duan and Gupeng Zhang
Additional contact information
Dujuan Huang: College of Business Administration, Anhui University of Finance and Economics, Bengbu 233030, China
Hongbo Duan: School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100049, China
Gupeng Zhang: School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing 100049, China

Sustainability, 2020, vol. 12, issue 8, 1-15

Abstract: To investigate Chinese enterprises’ innovation quality and examine how it is determined by the enterprise ownership, this paper uses about 73.8 thousand invention patents applied by Chinese enterprises during 1985–2011 in estimating patent return based on the renewal period. We take patent return to be the measurement of innovation quality, and make a comparison between public and private enterprises. We find that the innovation quality of public enterprises is improved after restructuring, but is still lower than that of private enterprises. We may find the causes of the innovation quality differences from the allocation efficiency of R&D resources. Monopolized enterprises own higher innovation quality by monopolizing industry resources, which leads to a low R&D resources allocation efficiency. In comparison, the R&D resources allocation efficiency of public enterprises in the competitive industry is higher than that in monopolized enterprises. R&D resources allocation efficiency is generally inversely proportional to the public owned level, and proportional to the market competition level. This study generates an important policy implication, that is, the social R&D resources allocation efficiency of China would be improved by disposing part of R&D resources monopolized by public research institutes and public enterprises to private enterprises.

Keywords: innovation quality; patent return; public enterprise; private enterprise; R& D resource; patent value (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/8/3107/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/8/3107/ (text/html)

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:gam:jsusta:v:12:y:2020:i:8:p:3107-:d:344815

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().