Impact of intellectual property protection on the innovation efficiency in China’s hi-tech industry

Abstract

ABSTRACT A plethora of publications have discussed the correlation between intellectual property protection (IPR) and innovation capability; however, regarding the hi-tech industry in transition economies, the relationship remains unclear. Based on the data from 30 hi-tech industries in Mainland China during 2004–2016, the study used the SAR Tobit model to analyse the direct, mediating and moderating effects of IPR on China’s hi-tech industry’s innovation efficiency. The findings illustrated that both R&D efficiency and business transformation efficiency of China’s hi-tech industry have significant positive spatial correlation and spatial spillover effect. In addition, IPR significantly promoted R&D efficiency and business transformation efficiency. Market segmentation exerted a significant negative moderating effect between IPR and R&D efficiency, and a significant positive moderating effect between IPR and business transformation efficiency. The technology market development has an intermediary effect between IPR and two-phase innovation efficiency. In particular, the non-linear influence of IPR on business transformation efficiency is the hinge on the level of market segmentation. Ultimately, several possible policy suggestions are proposed.