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The impact of ESG engagement on corporate patenting strategy

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  • Zhang, Xuehui
  • Miao, Le
  • Mu, Guoying
  • He, Mingwen

Abstract

Using a sample of Chinese firms, we examine whether firms involved in ESG tend to choose an offensive patenting strategy of developing new patents to compete head-on with competitors, or a defensive patenting strategy of building a patent wall around existing core patents, based on the perspective of intrinsic linkages between patents. Our findings suggest that ESG engagement drives a firm to adopt a defensive patenting strategy. The effect is more salient for state-owned firms, manufacturing firms, and large firms. Additional analyses suggest that the underlying mechanisms are government subsidies, media attention, and financing constraints.

Suggested Citation

  • Zhang, Xuehui & Miao, Le & Mu, Guoying & He, Mingwen, 2025. "The impact of ESG engagement on corporate patenting strategy," Finance Research Letters, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325005847
    DOI: 10.1016/j.frl.2025.107321
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    References listed on IDEAS

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    Cited by:

    1. Zhang, Taotao & Qin, Chuan & Lu, Zhaoying, 2025. "Market competitiveness and corporate ESG performance," International Review of Economics & Finance, Elsevier, vol. 101(C).

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