China’s IPR regime and provincial patenting activity

Abstract

This paper examines whether regions in China with stronger IPR regimes have better patenting performance, and whether they exhibit positive spillovers on neighbouring regions’ patenting. The results affirm positive and significant effects on both regards. This is likely due to the fact that a stronger IPR regime with its accompanying hard and soft knowledge infrastructure facilitates knowledge sharing and exchange, hence promoting innovation efficiency. The negative spillover effect of neighbour’s patenting activity may reflect inter-regional R&D collaboration, where patents are appropriated only by some participants. The results are robust across specifications.