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Imports and Intellectual Property Rights on Innovation in China

Chu, Angus C. and Shen, Guobing and Zhang, Xun (2017): Imports and Intellectual Property Rights on Innovation in China.

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Abstract

In an open-economy R&D-based growth model with two intermediate production sectors, we find that strengthening intellectual property rights (IPR) has a positive effect on innovation in the sector that uses domestic inputs but both positive and negative effects on innovation in the sector that uses foreign inputs. We test these results using an empirical analysis of matching samples that combine Chinese provincial IPR data with industrial enterprises database and customs database.

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