How do patent trolls affect the technological innovation of Chinese enterprises? Evidence from enterprise patent survey data in China

Abstract

Based on the 2017 China Patent Survey data, this study examines how contact with patent trolls affects Chinese enterprises’ technological innovation. The results indicate that the presence of patent trolls in the market may be beneficial for stimulating Chinese enterprises’ awareness of intellectual property rights and improving their technological innovation, indicated by increased R&D investment and patent quantity. However, direct contact with patent trolls does not improve patent value. Such contact further negatively affects patent implementation, as demonstrated by a decreasing share of self-implemented patents and an increasing share of licensed patents. Our findings reveal a “patent troll infection” among enterprises, which hinders patented technology implementation.