Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China

Lily H. Fang, Josh Lerner and Chaopeng Wu

The Review of Financial Studies, 2017, vol. 30, issue 7, 2446-2477

Abstract: Using a difference-in-differences approach, we study how intellectual property right (IPR) protection affects innovation in China in the years around the privatizations of state-owned enterprises (SOEs). Innovation increases after SOE privatizations, and this increase is larger in cities with strong IPR protection. Our results support theoretical arguments that IPR protection strengthens firms’ incentives to innovate and that private sector firms are more sensitive to IPR protection than SOEs.Received June 17, 2015; editorial decision November 23, 2016 by Editor Andrew Karolyi.

JEL-codes: O31 O34 O38 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (178)

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Working Paper: Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China (2016)
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