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

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  • Lily Fang
  • Josh Lerner
  • Chaopeng Wu

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.

Suggested Citation

  • Lily Fang & Josh Lerner & Chaopeng Wu, 2016. "Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China," NBER Working Papers 22685, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:22685
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    More about this item

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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