Intellectual Property Protection and the Innovation Capacity of Chinese Manufacturing Enterprises: A Quasi-Experimental Study Based on the Development of National Intellectual Property Demonstration Cities
DOI:
https://doi.org/10.54097/6w4ych88Keywords:
Intellectual Property Protection, Corporate Innovation Capabilities, Innovation-Driven Impact, Market Performance EffectAbstract
The economic benefits of intellectual property protection are closely tied to the design of the institutional framework, and the development of national intellectual property demonstration cities helps foster an external environment conducive to innovation. Based on data from Chinese A-share listed companies from 2008 to 2023, this paper treats the policy on the development of National Intellectual Property Demonstration Cities—enacted in 2011—as a quasi-experimental design. Using a multi-period difference-in-differences model, the study empirically examines the impact of intellectual property protection on the innovation capabilities of Chinese manufacturing firms. The research findings indicate that: (1) Intellectual property protection can enhance the innovation capabilities of Chinese manufacturing firms. (2) Tests of the mechanism reveal that intellectual property protection promotes the enhancement of innovation capabilities in manufacturing firms through two pathways: the innovation-driven effect, which increases R&D investment and improves patent quality; and the market performance effect, which expands market influence and improves financial performance. (3) Heterogeneity tests revealed that the role of intellectual property protection in enhancing the innovation capabilities of manufacturing firms is more pronounced south of the Hu-Huan-Yong Line and among “specialized, refined, distinctive, and innovative” enterprises.
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