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Does Enforcement of Intellectual Property Rights Matter in China? Evidence from Financing and Investment Choices in the High-Tech Industry

James S. Ang1; Yingmei Cheng1; Chaopeng Wu2

1 Florida State University · 2 Xiamen University

The Review of Economics and Statistics 2014

Abstract Using a unique and rich database of high-technology firms in China, we show that effective enforcement of intellectual property rights at the provincial level is critical in encouraging financing and investing in R&D. Better enforcement of intellectual property (IP) rights positively affects firms' ability to acquire new external debt and allows firms to invest in more R&D, generate more innovation patents, and produce more sales from new products. Our results suggest that facilitating financing and investing in R&D are the channels through which better IP rights enforcement can affect economic growth.

DOI
10.1162/rest_a_00372
Volume
96 (2)
Pages
332-348
Language
en
Export
BibTeX
Sources
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