The Effects Of Intellectual Property Protection On Chinese Enterprises' Innovation

Since 2012,China's economic growth has slowed down,GDP growth rate has continued to decline,and in 2018,GDP growth rate has dropped to 6.6%.Almost at the same time,China put forward the innovation-driven development strategy,trying to promote economic growth by encouraging innovation.However,the effective implementation of the innovation-driven development strategy is inseparable from the intellectual property system that is compatible with it.After the reform and opening up,China has gradually attached importance to intellectual property protection.On the one hand,China has established and improved the intellectual property legal system.In 2014,China initiated the fourth revision of the patent law;on the other hand,the enforcement of intellectual property rights is also constantly strengthening.In order to strengthen the enforcement of intellectual property rights,China decided to set up intellectual property courts in Beijing,Shanghai and Guangzhou in 2014.Overall,China's intellectual property protection is on the rise.So,is China's current intellectual property protection compatible with the innovation-driven development strategies?Does the strengthening of intellectual property protection promote China's technological innovation?Based on the GP index,this paper will scientifically measure the intellectual property protection of different regions of China,and on this basis,examine the impact of intellectual property protection on the innovation output and innovation efficiency of Chinese enterprises.In the research content,based on the endogenous growth model proposed by Romer(1990),and with reference to Yi et al.(2007),this paper introduces intellectual property protection into the innovation activities of R&D departments.In the context of domestic independent innovation coexisting with imitation innovation,this paper establishes corresponding theoretical models to deeply investigate the impact of intellectual property protection on enterprise innovation output and innovation efficiency,and put forward corresponding propositions.Secondly,using relevant data,this paper analyzes the current status of China's intellectual property protection and the characteristics of innovation input and innovation output at the national,regional and industry levels of China.Thirdly,referring to Ginarte and Park(1997)and the relevant literatures of some domestic scholars,this paper introduces the enforcement of intellectual property laws and scientifically calculates the value of intellectual property protection in the region level of China.Next,using the data of China' s industrial enterprises' scientific and technological activities from 2011 to 2013,this paper empirically analyzes the overall effect of intellectual property protection on enterprises' innovation output and the industry heterogeneity of this effect,then this paper further examines non-linear relationship effects of intellectual property protection on enterprises' innovation output,such as inverted U-shaped relationship and threshold effect.In addition,technical inefficiency of stochastic frontier models and TFP of R&D are respectively adopted to measure the enterprises' innovation efficiency.On this basis,this paper analyzes the impact of intellectual property protection on the innovation efficiency of enterprises.Finally,the last part summarizes the main conclusions of this paper,and puts forward corresponding policy suggestions according to the conclusions of this paper.The main conclusions of this paper are as follows:First,in general,the higher the level of intellectual property protection,the higher the innovation output of Chinese manufacturing enterprises.Using different metrics,different estimation methods,and considering possible enterprise-level missing variables,the empirical results are still robust.According to the technical level of different industries,we divide the total sample into two subsamples and perform regression separately.Comparing the two regression results,we found that for enterprises in the high-tech industries,intellectual property protection has a stronger influence on promoting the innovation output of enterprises.This paper further investigates the non-linear effects of intellectual property protection on enterprises' innovation output,including inverted U-shaped relationship test,non-linear relationship test of intellectual property protection interval and threshold effect test of intellectual property protection.Based on the results of three tests,this paper finds that with the improvement of the level of intellectual property protection,its role in promoting the innovation output of enterprises will gradually decrease.However,this non-linear influence relationship is not stable:when the innovation output is measured by the number of patent applications,the above law exists;when the innovation output is measured by the sales revenue of new products,it does not exhibit such a nonlinear relationship.Second,intellectual property protection will have a significant positive impact on the innovation efficiency of enterprises.Both the regression results of the stochastic frontier model and the regression results based on R&D TFP support this conclusion.When using the stochastic frontier model to examine the impact of intellectual property protection on enterprises' innovation efficiency,this paper found that patent data is not applicable to stochastic frontier models,while new product data is applicable.Using different metrics,different estimation methods,and considering the problem of possible missing variables,the empirical results are still robust.When adopting the R&D TFP to measure the innovation efficiency of enterprises and then examining the impact of intellectual property protection on the innovation efficiency of enterprises,this paper finds that both patent application data and the data of new products' sales revenue support the positive impact of intellectual property protection on enterprises' innovation efficiency.According to the technical level of different industries,we divide the total sample into two subsamples and perform regression separately.Comparing the two regression results,we found that the innovation efficiencies of enterprise in the high-tech industries are more sensitive to intellectual property protection.In addition,the robustness tests including considering the inclusion of the missing variables and the quantile regression method also confirm the robustness of the basic conclusion.