Research On Correlation Between Intellectual Property And Enterprise Performance

With the development of knowledge economy,China’s economy has stepped into what is now called a NEW Normal,in which economic growth driver increasingly relies on innovation-driven development.Therefore,the importance of intellectual property and innovation-driven factors is becoming obvious.The value of enterprises’ intangible assets exceeds tangible assets and becomes the main source of enterprises’ fortune in recent years.The days of market share gained by "price war" are gone forever.The new normal of future economic competition will be replaced and driven by intellectual property competition and innovation development.In the view of big data era,data’s dramatic update highly requires technology’s continually update.If the intellectual property from enterprise’s innovation cannot be better protected,innovation can be copied easily and quickly.The cost of innovation cannot be covered.Meanwhile,new product of higher price induced by higher innovation cost will lose market competition.Patent,as the core of property protection management,is the targeted factor to study property protection in this paper.TCM,as one of Chinese quintessence,it has the advantages of low cost,safety and efficiency,less side effect and special effect on human chronic diseases compared to synthetic compound of western medicine.R&D on traditional medicine is becoming a hot direction.With the trend of Nature Products,many organizations and enterprises start to pay attention TCM and registered the patents of TCM in advance.It is estimated that there are about more than 900 Chinese herb projects are applied and registered by foreign countries in abroad,and that 70%of TCM market share is occupied by foreign countries.Even these foreign enterprises output TCM product to China.The main reason for this is that patents application in China greatly fall behind,lack management experiences and personnel.In view of knowledge economy,big data era and status of TCM development,a sense of intellectual property protection is highly advocated.In view of enterprises management,there are a lot of researches focused on patents assets impact on enterprises’ performance and management in Euromerican developed countries by scholars abroad,which offered strong evidences.Most of the literatures studied mainly in innovation enterprises,which show that there is close relationship between intellectual property and enterprise performance.However,TCM is a kind of "experiencing medicine".If the result of previous can be applied in TCM is a question.Moreover,there are very few literatures studied the relationship between patent and performance in view of TCM.Therefore,it is deserved to further study the relationship between patents and TCM enterprises’performance.Based on condition above,to study the relationship between patent and enterprise performance in TCM,following the previous literatures and related theory,this paper sets up a theoretical model of patent quantity and quality’s influence on enterprise performance targeted at 2013-2017 data of 70 listed TCM companies.Take patent quantity and quality as explaining variable,enterprise’s revenue and Tobin’s Q as the explained variable.Controlled variable is also introduced which are asset,asset-liability ratio and established time.Based on reasonable hypothesizes proposed,a theoretical model is established.Conclusions of the empirical analysis by SPSS is as following:The relationship between total patent authorized quantity and enterprise performance is significantly positive correlated with hysteresis,which invent patent takes the most significance.The relationship between design patents quantity authorized and enterprise performance is significantly positive correlated with hysteresis.The relationship between utility patent quantity authorized and enterprise performance is not significantly positive correlated.Finally,based on conclusion of empirical analysis and current TCM status and problem,in view of patent quantity,quality hysteresis,thus bring forth some suggestions and countermeasures to promote enterprise’s performance.Considering positive correlation between total patent quantity and enterprise performance and the contribution of invent patent,it is recommended that the enterprise should increase and promote patent authorized quantity and quality by intellectual property sense,capital invested and talent introduction which provides strong competition for sustainable development.The enterprise should promote innovation patent achievement transferring ability.To gain more heterogeneous innovation source,enterprise internationalization is highly encouraged.The government should modify related laws and regulations of patent system,strengthen patent advocation to promote intellectual property protection sense and set up modern TCM data base.Furthermore,the enterprise should promote the input on design patent and strengthen brand building by traditional Chinese medicine culture.The innovation of this paper lies in as following.Firstly,research on intellectual property started in recent years and are in stage of formation.The study between intellectual property and company performance is not comprehensive enough.And most importantly,there are few studies on Traditional Chinese Medicine.Moreover,TCM played an important role in treating and mitigating the convid-19 in the beginning of 2020.The medicine used all have related patents and relevant TCM medicine manufacturers has attracted wide attention.Herein,this paper focuses on Traditional Chinese Medicine by empirical analysis,which will offer good reference in view of theoretical and theoretical and practical significance forChinese quintessence protection and for TCM enterprises’ decision on patent.