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Path analysis of intellectual property judicial protection: From court establishment to efficiency enhancement

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  • Wu, WenJun
  • Liu, Yaofei

Abstract

Against the backdrop of innovation-driven development and the strategy of building a strong intellectual property (IP) powerhouse, this paper takes the establishment of IP tribunals in Beijing, Shanghai, and Guangzhou in 2014 as a quasi-natural experiment. It constructs a multi-period Difference-in-Differences (DID) model to systematically examine the impact of IP judicial protection on firms' technological progress and its underlying mechanisms. The empirical results show that: First, the establishment of IP tribunals significantly enhances firms' total factor productivity (TFP). Second, judicial protection forms a transmission chain of "judicial protection - alleviation of financing constraints - improvement in production efficiency" by easing financing constraints. Third, the policy effect exhibits significant industry heterogeneity, with a more pronounced marginal promoting effect on high-tech firms (such as those in pharmaceutical manufacturing and specialized equipment industries), while having an insignificant impact on traditional firms.

Suggested Citation

  • Wu, WenJun & Liu, Yaofei, 2025. "Path analysis of intellectual property judicial protection: From court establishment to efficiency enhancement," Finance Research Letters, Elsevier, vol. 86(PG).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pg:s1544612325021099
    DOI: 10.1016/j.frl.2025.108856
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    References listed on IDEAS

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    1. Fan, Hongwei & Yin, Junming & Usman, Muhammad & Li, Zhengguang, 2024. "Intellectual property protection and total factor productivity of enterprises: A quasi-natural experiment of intellectual property courts," Finance Research Letters, Elsevier, vol. 70(C).
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