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How does the exclusive license stimulate firm’s subsequent innovation? The role of innovation financial input

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  • Zhang, Dongyang
  • Guo, Rui
  • He, Xiaodan

Abstract

We study the influence of an innovation policy tool, namely, an exclusive license on firm innovation. Based on an extensive dataset of Chinese high-tech firms, we show that exclusive licenses significantly promote firm innovation output. Further, from our results, we conclude that the most efficient duration of exclusive license policies on promoting innovation is roughly three years. Mechanism analysis also reveals that the positive effects of exclusive license on innovation come from stimulating firm innovation financial input. Our findings extend the literature on innovation drivers, and provide a useful reference for other emerging economies to formulate more effective innovation strategies.

Suggested Citation

  • Zhang, Dongyang & Guo, Rui & He, Xiaodan, 2022. "How does the exclusive license stimulate firm’s subsequent innovation? The role of innovation financial input," Research in International Business and Finance, Elsevier, vol. 60(C).
  • Handle: RePEc:eee:riibaf:v:60:y:2022:i:c:s0275531921002221
    DOI: 10.1016/j.ribaf.2021.101601
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