Internet development and regional innovation efficiency: the moderating effect of intellectual property protection

Abstract

ABSTRACT Promoting innovation is a critical route to high-quality economic development. The objective of this study is to analyse the impact of internet development (INT) on regional innovation efficiency (RIE). Using the super-Epsilon-based measure model under metafrontier (M-Super-EBM), the RIE is evaluated based on panel data of 284 Chinese cities from 2010 to 2018. On this basis, we adopt a two-way fixed effect model to examine the role of INT on RIE. Additionally, we further construct a moderating model to probe the effect of intellectual property protection (IPP) in the influencing mechanism of INT on RIE. The empirical results show that China’s RIE displayed an upward trend during 2010–2018. Cities in coastal provinces had the largest RIE. The development of the internet significantly improves China’s RIE, and the promotion effect is mainly achieved by increasing innovative input and output. The synergetic effect of INT and IPP on RIE is significantly positive. Moreover, a U-shaped relationship is also validated between IPP and RIE. The estimated results remain valid after a series of robust checks. Hence, it is of immense significance to accelerate the internet application and strengthen the IPP intensity for the improvement of innovation efficiency.