<p>In order to explore the impacts of China’s intellectual property protection on total factor productivity (TFP) and its influence mechanisms from micro-firm and middle-industry levels, based on the data of Chinese Industrial Enterprise Database from 2001 to 2013, we select four indicators to systematically measure the degree of intellectual property protection in each province, including the level of intellectual property protection law enforcement in the province, the average amount of compensation in provincial judicial judgments, the importance of the provincial party committee on intellectual property protection, and the actual impacts of intellectual property protection in the province. The micro-firm level research found that: (Acs and Patens <CitationRef CitationID="CR1">2012</CitationRef>) Intellectual property protection improved firm TFP significantly, and this conclusion still holds after a series of robustness tests (Aghion and Howitt <CitationRef CitationID="CR2">1992</CitationRef>). Intellectual property protection had a relatively significant role in promoting the TFP of technology-intensive firms, small and medium-sized firms, private firms, and non-coastal firms (Agostini et al. <CitationRef CitationID="CR3">2015</CitationRef>). Intellectual property protection mainly promoted firm TFP through three influence mechanisms: stimulating R&amp;D behaviors, relaxing financing constraints, and moderating market competition. The middle-industry-level study shows that intellectual property protection significantly contributed to the growth of industry aggregate TFP by improving the overall technological level of surviving firms. Based on analysis at micro-firm and middle-industry levels, we provide new empirical evidence for deepening understanding of the productivity effects of intellectual property protection.</p>

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Intellectual Property Protection and Total Factor Productivity: Evidence from China

  • Jingyan Zhao,
  • Wen Yue

摘要

In order to explore the impacts of China’s intellectual property protection on total factor productivity (TFP) and its influence mechanisms from micro-firm and middle-industry levels, based on the data of Chinese Industrial Enterprise Database from 2001 to 2013, we select four indicators to systematically measure the degree of intellectual property protection in each province, including the level of intellectual property protection law enforcement in the province, the average amount of compensation in provincial judicial judgments, the importance of the provincial party committee on intellectual property protection, and the actual impacts of intellectual property protection in the province. The micro-firm level research found that: (Acs and Patens 2012) Intellectual property protection improved firm TFP significantly, and this conclusion still holds after a series of robustness tests (Aghion and Howitt 1992). Intellectual property protection had a relatively significant role in promoting the TFP of technology-intensive firms, small and medium-sized firms, private firms, and non-coastal firms (Agostini et al. 2015). Intellectual property protection mainly promoted firm TFP through three influence mechanisms: stimulating R&D behaviors, relaxing financing constraints, and moderating market competition. The middle-industry-level study shows that intellectual property protection significantly contributed to the growth of industry aggregate TFP by improving the overall technological level of surviving firms. Based on analysis at micro-firm and middle-industry levels, we provide new empirical evidence for deepening understanding of the productivity effects of intellectual property protection.