Institutional regime shift in intellectual property rights and innovation strategies of firms in China

This study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of Chinese and Western firms operating in China. We argue that to the extent that Chinese firms have be...

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Main Authors: HUANG, Kenneth G. L., GENG, Xuesong, WANG, Heli
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Language:English
Published: Institutional Knowledge at Singapore Management University 2017
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Online Access:https://ink.library.smu.edu.sg/lkcsb_research/5139
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6138/viewcontent/InstitutionalRegimeShiftChina_2017_afv.pdf
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spelling sg-smu-ink.lkcsb_research-61382017-06-06T03:22:34Z Institutional regime shift in intellectual property rights and innovation strategies of firms in China HUANG, Kenneth G. L. GENG, Xuesong WANG, Heli This study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of Chinese and Western firms operating in China. We argue that to the extent that Chinese firms have been deeply embedded in China’s informal institutions,they are less responsive to formal institutional changes than Western firms operating in China. Using the major China patent law reform of 2001 as an exogenous event, we find results consistent with our key arguments: With the strengthening of the previously weak (utility model) patent protection, Chinese firms are less likely to apply for such patents to safeguard their innovations than Western firms. However, this difference becomes less pronounced in regions with higher quality intellectual property rights and legal institutions that foster research and development and innovation, and when Western firms gain longer operational experience in China.This study advances our understanding of the intricate interaction between formal and informal institutions and specifically how "stickiness" may arise in their substitutive relationship because of the embeddedness of firms in informal institutional environments.It also provides important implications for policy and innovation strategies for policy makers and firms in emerging economies. 2017-03-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/5139 info:doi/10.1287/orsc.2017.1117 https://ink.library.smu.edu.sg/context/lkcsb_research/article/6138/viewcontent/InstitutionalRegimeShiftChina_2017_afv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University China Emerging economy Innovation strategy Institutional change Intellectual property rights Asian Studies Intellectual Property Law Technology and Innovation
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic China
Emerging economy
Innovation strategy
Institutional change
Intellectual property rights
Asian Studies
Intellectual Property Law
Technology and Innovation
spellingShingle China
Emerging economy
Innovation strategy
Institutional change
Intellectual property rights
Asian Studies
Intellectual Property Law
Technology and Innovation
HUANG, Kenneth G. L.
GENG, Xuesong
WANG, Heli
Institutional regime shift in intellectual property rights and innovation strategies of firms in China
description This study develops a novel conceptual framework to understand the differential impact of formal institutional regime shift in intellectual property rights on the innovation and patenting strategies of Chinese and Western firms operating in China. We argue that to the extent that Chinese firms have been deeply embedded in China’s informal institutions,they are less responsive to formal institutional changes than Western firms operating in China. Using the major China patent law reform of 2001 as an exogenous event, we find results consistent with our key arguments: With the strengthening of the previously weak (utility model) patent protection, Chinese firms are less likely to apply for such patents to safeguard their innovations than Western firms. However, this difference becomes less pronounced in regions with higher quality intellectual property rights and legal institutions that foster research and development and innovation, and when Western firms gain longer operational experience in China.This study advances our understanding of the intricate interaction between formal and informal institutions and specifically how "stickiness" may arise in their substitutive relationship because of the embeddedness of firms in informal institutional environments.It also provides important implications for policy and innovation strategies for policy makers and firms in emerging economies.
format text
author HUANG, Kenneth G. L.
GENG, Xuesong
WANG, Heli
author_facet HUANG, Kenneth G. L.
GENG, Xuesong
WANG, Heli
author_sort HUANG, Kenneth G. L.
title Institutional regime shift in intellectual property rights and innovation strategies of firms in China
title_short Institutional regime shift in intellectual property rights and innovation strategies of firms in China
title_full Institutional regime shift in intellectual property rights and innovation strategies of firms in China
title_fullStr Institutional regime shift in intellectual property rights and innovation strategies of firms in China
title_full_unstemmed Institutional regime shift in intellectual property rights and innovation strategies of firms in China
title_sort institutional regime shift in intellectual property rights and innovation strategies of firms in china
publisher Institutional Knowledge at Singapore Management University
publishDate 2017
url https://ink.library.smu.edu.sg/lkcsb_research/5139
https://ink.library.smu.edu.sg/context/lkcsb_research/article/6138/viewcontent/InstitutionalRegimeShiftChina_2017_afv.pdf
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