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IP protection and green innovation in China: why firms respond differently

delete2026-08-06
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PRE
AI
K
Kaicheng Liao
Y
Yuchen Zhang
Z
Zhibin Lin
F
Feifei Xu
J
Jingwen Yi *
DOI:10.1007/s10490-026-10169-ydelete
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Abstract

Abstract

En 中文
Intellectual property (IP) protection is increasingly used as a policy instrument to promote green innovation, yet firms do not respond to stronger IP regimes in the same way. Drawing on dynamic capabilities theory, we examine how managerial shortsightedness, subjective perception of economic policy uncertainty (SEPU), and political resources shape firms’ ability to benefit from stronger IP protection. Using data from China’s A‑share listed firms (2008–2023) and China’s Intellectual Property Pilot and Demonstration City policy as a quasi‑natural experiment, we apply a staggered difference‑in‑differences (DID) design to identify causal effects. The results show that IP protection is not a uniform catalyst: firms with less managerial shortsightedness see clear gains in both the quantity and quality of green innovation, while those focused on short‑term performance capture far fewer benefits. Firms perceiving higher SEPU gain stronger IP protection benefits, suggesting that perceived policy uncertainty increases the value of IP protection as an institutional safeguard that stabilizes expected returns and reduces appropriation risk. This research advances understanding of institutional effectiveness and offers practical guidance for managers and policymakers.
Keywords:
Intellectual property protection
Green innovation
Managerial shortsightedness
Subjective perception of economic policy uncertainty
Political resources
Innovation policy

Journal

Asia Pacific Journal of Management cover
Asia Pacific Journal of Management
IF:
5.8
Papers:
1.1K
Citations:
4.6K

Organization

S
school of economics and management
Scholars:
635
Papers: 337
Citations: 0
I
Institute of Industrial Economics
Scholars:
2
Papers: 775
Citations: 7
B
business school
Scholars:
865
Papers: 577
Citations: 0
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