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Investigating the real effect of China’s patent surge: New evidence from firm-level patent quality data

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  • Wu, Howei
  • Lin, Jia
  • Wu, Ho-Mou

Abstract

This paper examines whether there was a real improvement in patent quality or productivity with the patent surge in China. Based on the novel database we compiled, we demonstrate that accumulated patent stock measured using quality metrics was positively associated with the productivity of large and medium-size enterprises (LMEs). We also find that R&D investments by LMEs led to increases in patent quality. However, the estimated R&D-patenting elasticities in China are found to be lower than those estimated in developed countries. We offer some explanations and discuss their implications for policy considerations.

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  • Wu, Howei & Lin, Jia & Wu, Ho-Mou, 2022. "Investigating the real effect of China’s patent surge: New evidence from firm-level patent quality data," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 422-442.
    • Handle: RePEc:eee:jeborg:v:204:y:2022:i:c:p:422-442
    DOI: 10.1016/j.jebo.2022.10.004
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    More about this item

    Keywords

    Patent quality; Productivity; R&D; Large and medium-size enterprises; China;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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