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

54 Pages Posted: 29 Nov 2016

See all articles by Lily H. Fang

Lily H. Fang

INSEAD - Finance

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Chaopeng Wu

Xiamen University - School of Management

Multiple version iconThere are 2 versions of this paper

Date Written: November 21, 2016

Abstract

Using a difference-in-difference 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.

Keywords: Patents; Legal Institutions; Development; China

JEL Classification: O31, O34, O38

Suggested Citation

Fang, Lily H. and Lerner, Josh and Wu, Chaopeng, Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China (November 21, 2016). Harvard Business School Entrepreneurial Management Working Paper No. 17-043; Harvard Business School Finance Working Paper No. 17-043. Available at SSRN: https://ssrn.com/abstract=2877179 or http://dx.doi.org/10.2139/ssrn.2877179

Lily H. Fang

INSEAD - Finance ( email )

Boulevard de Constance
F-77305 Fontainebleau Cedex
France

Josh Lerner (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Chaopeng Wu

Xiamen University - School of Management ( email )

No.422 Siming Nan Road
Xiamen, Fujian 361005
China

Register to save articles to
your library

Register

Paper statistics

Downloads
241
Abstract Views
1,063
rank
32,145
PlumX Metrics