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  • 2016
  • Working Paper

Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China

By: Lily Fang, Josh Lerner and Chaopeng Wu
  • Format:Print
  • | Language:English
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Abstract

Using a difference-in-difference approach, we study how intellectual property right (IPR) protection affects innovation in China in the years around the privatizations of state-owned enterprises (SOEs). Innovation increases after SOE privatizations, and this increase is larger in cities with strong IPR protection. Our results support theoretical arguments that IPR protection strengthens firms’ incentives to innovate and that private sector firms are more sensitive to IPR protection than SOEs.

Keywords

Privatization; Copyright; Innovation and Invention; China

Citation

Fang, Lily, Josh Lerner, and Chaopeng Wu. "Intellectual Property Rights Protection, Ownership, and Innovation: Evidence from China." NBER Working Paper Series, No. 22685, September 2016.
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About The Author

Josh Lerner

Entrepreneurial Management
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