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Patent strategies in the digital revolution: How businesses use digital technology patents to optimize resource allocation efficiency

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  • Lv, Xuejing
  • Zhao, Bosi
  • Cheng, Defang
  • Xia, Chenyang

Abstract

This study assesses how digital technology patents affect resource allocation efficiency in China's nonfinancial firms (2009–2021) using a benchmark regression model. It finds that both the quantity and quality of these patents significantly improve allocation efficiency, especially in highly digitalized sectors. The analysis suggests that patents enhance efficiency via better innovation but their impact varies across enterprise types. Recommendations are made based on these findings.

Suggested Citation

  • Lv, Xuejing & Zhao, Bosi & Cheng, Defang & Xia, Chenyang, 2024. "Patent strategies in the digital revolution: How businesses use digital technology patents to optimize resource allocation efficiency," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008651
    DOI: 10.1016/j.frl.2024.105835
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    Cited by:

    1. Wu, Xiaoming & Wu, Kai, 2025. "Intellectual property protection: How bankruptcy courts shape corporate technological innovation and patent quality," Finance Research Letters, Elsevier, vol. 79(C).
    2. Jinyue Zhang & Zhenglin Sun, 2025. "Can digital-empowered green finance enhance energy efficiency? Empirical evidence from China," Economic Change and Restructuring, Springer, vol. 58(4), pages 1-67, August.
    3. Liu, Lei, 2025. "How does regional judicial quality improvement enhance enterprises' capital allocation efficiency: Evidence from the establishment of circuit court," International Review of Financial Analysis, Elsevier, vol. 103(C).
    4. Han, Qifeng & Li, Chunhui, 2026. "Patent quality and enterprise digital transformation," International Review of Financial Analysis, Elsevier, vol. 109(C).
    5. Liu, Fengyun & Huang, Jingqian & Yan, Qu & Yao, Lu, 2025. "Does the timing of subsidized loans matter for clean energy technological innovation? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 407-425.
    6. Shi, Xiuping & Liu, Hao, 2025. "How does digital supply chain transformation enhance sustainable performance of renewable energy enterprises?," International Review of Economics & Finance, Elsevier, vol. 103(C).
    7. Zhang, Li & Song, Xinwei, 2025. "Managerial overconfidence and corporate digital transformation," Finance Research Letters, Elsevier, vol. 75(C).

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