Improving Innovation Quality in Responding to Rigorous Intellectual Property Logic in Emerging Economies? The Role of Subsidy Policy for Patenting Overseas and International Imprinting

Abstract

This study investigates the link between subsidy policy for patenting overseas (SPPO) and the innovation quality of emerging economy firms, focusing on the role of international imprinting. Through the theoretical lenses of institutional logics and imprinting, we hypothesize that SPPO, which embodies a rigorous intellectual property (IP) logic, enhances innovation quality, particularly in firms with international imprinting. Analysing Chinese listed firms in the computers, telecommunications and electronics sectors during 2004–2021 using matching and difference-in-differences techniques, we find that firms responding to SPPO show improved innovation quality. This effect is amplified by international imprinting at the board and organizational levels, both separately and jointly. These findings highlight that international imprinting enhances the effectiveness of government policy that embodies rigorous IP logic, offering valuable insights for managers and policymakers seeking to foster high-quality innovation in emerging economies.