Imported intermediate goods, intellectual property protection, and innovation in Chinese manufacturing firms

IF 4.2 2区经济学 Q1 ECONOMICS

Economic Modelling Pub Date : 2025-01-02 DOI:10.1016/j.econmod.2024.106960

Jie Xie , Jiayu Tian , Yong Hu , Quan Wang , Zhaoqiong Dai

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Abstract

As China continues to open up, its innovation output continues to grow. What role do imported inputs play in this circumstance? Based on an extended theoretical model and an empirical analysis using Chinese firm-level data, we found that firms using more imported inputs have higher innovation output. More imported inputs require government to improve the strength of intellectual property protection (IPP), which brings legal security for technology transfer and cooperation attached to imported inputs, accelerating innovation. However, we found that only when the strength of IPP is below a certain threshold, IPP enhances the positive impact of imported inputs on innovation output; when the strength of IPP exceeds this threshold, it hinders this positive impact. Kernel density analysis showed that China's average IPP strength remains below certain thresholds. Heterogeneity analysis was conducted based on innovation motivation, passthrough effects, and firm location. Finally, a multigroup multiperiod DID analysis confirmed our findings.

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来源期刊

Economic Modelling ECONOMICS-

CiteScore

8.00

自引率

10.60%

发文量

295

期刊介绍： Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.