Knowledge flows in technology-intensive publicly listed company - Evidence from Chinese patent citation data

Abstract

This empirical study utilizes patent citations from technology-intensive publicly listed companies in China between 2000 and 2019 to analyze the current state of knowledge flow within and among these companies. While capital markets are crucial for innovation, the extent to which publicly listed firms facilitate knowledge flow remains unclear. This research delineates the circulation of technological knowledge both intra- and inter-company, across similar and disparate industries, and between listed companies and non-listed innovative entities. The findings indicate a pronounced tendency among technology-intensive listed companies to cite their patents extensively. Self-citations comprise nearly 60 % of total citations, suggesting that technological knowledge primarily circulates within individual companies. Furthermore, the exchange of technological knowledge among different listed companies within the same industry is notably sparse, with only a fractional increase in the frequency of knowledge flows within the industry compared to across industry boundaries. Predominantly, the technological knowledge that technology-intensive listed companies acquire from non-listed innovative entities stems from domestic unlisted companies, with foreign entities and universities contributing to a lesser extent. When examining the spillover of technological knowledge to non-listed innovative entities, it is observed that other non-listed companies predominantly absorb such knowledge, with universities and individual innovators receiving lesser proportions. Finally, this study is significant as it provides empirical evidence on the flow of technological knowledge within and between publicly listed technology-intensive companies in China, revealing the dominance of self-citations and limited cross-company knowledge exchange. By analyzing patent citation data, this research provides valuable insights into the interactions between listed companies and non-listed innovative entities. The findings highlight the significant role of non-listed firms, universities, and foreign entities in shaping technological development. Strengthening these connections can further foster innovation and en hance knowledge diffusion across sectors.