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Patent quality, R&D investment, and the profitability of technology-based firms

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  • Chen, Hanjun
  • Qian, Long
  • Gu, Haohao
  • Chen, Qianqian
  • Zheng, Ke
  • Zhang, Yong
  • Dong, Sha

Abstract

This study examines the impact of patent quality on technology-based enterprise profitability using panel data from companies listed on China's Science and Technology Innovation Board (STAR market) and the Growth Enterprises Market from 2013 to 2022. The findings indicate that patent quality significantly enhances the profitability of these enterprises from an economic and legal perspective. The study explores the moderating role of research and development investment in the relationship between patent quality and profitability, identifying a negative moderating effect. Heterogeneity analysis indicates that the positive impact of patent quality on profitability is more pronounced in China's eastern region.

Suggested Citation

  • Chen, Hanjun & Qian, Long & Gu, Haohao & Chen, Qianqian & Zheng, Ke & Zhang, Yong & Dong, Sha, 2025. "Patent quality, R&D investment, and the profitability of technology-based firms," Finance Research Letters, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325001874
    DOI: 10.1016/j.frl.2025.106923
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    References listed on IDEAS

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    1. Qingjie Zhou & Mingyue Du & Zhenling Chen & Tianshun Miao & Guoge Yang, 2022. "Do R&D Subsidies Improve Operational Performance? New evidence from China," Prague Economic Papers, Prague University of Economics and Business, vol. 2022(5), pages 398-416.
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    Full references (including those not matched with items on IDEAS)

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