Exploring the optimal boundaries of intellectual property rights and environmental regulation for enhancing technological innovation: a perspective of boundary effects in China

Abstract

ABSTRACT This paper examines how the protection boundary of intellectual property rights and the implementation boundary of environmental regulation affect technological innovation from the perspective of boundary effects. We find that intellectual property rights, environmental regulation and technological innovation have an inverted U-shaped relationship, and there is a single optimal boundary value for each variable, forming a strong protection boundary and a weak protection boundary. We also find that choosing the appropriate boundary of intellectual property rights and environmental regulation can enhance technological innovation; intellectual property rights within the optimal boundary can extend its positive incentive effect on technological innovation. Environmental regulation uses intellectual property rights as the internal driving force, and with the help of intellectual property rights, continues to promote technological innovation. And the shielding effect of boundaries is greater than the intermediary effect. Our analysis of regional heterogeneity in intellectual property protection reveals that the integration of dual policy types is more effective in the eastern and central regions. Furthermore, the boundary of intellectual property protection in the eastern region surpasses that in the central region. It has important policy implications for promoting innovation system reform and coordinating high-quality economic development and high-level ecological environment protection.