說明分析案例patent premium in weak ipr countries

1、Patent Premium in Countries with Weak Intellectual Property Rights ProtectionMotivationIncreasing patenting activities in emerging economies (with weak IPR protection)Patenting activities have surged in China in the last ten yearsWeak IPR protection and possibly low patent premium in China Motivatio

2、nFirms that patented innovations are expected to earn almost 50% more on average than if they had not patented those innovations (Arora et al., 2008, Int J Ind Organ)This value increment is defined as patent premiumLittle large-scale quantitative research on patent premium due to technical difficult

3、iesEven less patent premium research has a focus on emerging economies with weak IPR protectionResearch questionsIs there patent premium for domestic firms and MNCs in China (weak IPR protection)?How does industry competition moderate the extent of patent premium for domestic firms and MNCs in China

4、?TheoriesCompetitive advantage and resource based viewA firm can achieve superior performance and build up its competitive advantage through its resourcesRival firms can erode a focal firms competitive advantage if they possess similar resources that pose threat to the focal firmSustainability of th

5、e focal firms competitive advantage will therefore be determined by whether rival firms are able to imitate such key resources and whether the focal firm can create barriers to such imitation So a focal firms resources need to meet certain conditions for the firm to achieve sustainable competitive a

6、dvantageCorner stones of competitive advantage (peteraf, 1993)Hypotheses developmentResource heterogeneityMNCs in general have superior technological capability than local firms in emerging economiesMNCs in general demonstrate foreignnessEx-post limit to competitionIsolating mechanisms needed for MN

7、Cs to limit rivals imitation to their superior technologiesPatent is an isolating mechanism, so is supposed to bring patent premium In countries with strong IPR protection, companies with superior technology may gain higher patent premiumIn countries with weak IPR protection, companies with superior

8、 technology may gain little patent premiumPatent may not be effective in preventing imitationPatent premium may be further compromised by lower causal ambiguity due to patent policyH1 and H2Ex-ante limit to competitionCompetitive advantage due to superior technologies would be weaker with weak ex-an

9、te limit to competitionIsolating mechanism is even more important with weak ex-ante limit to competition, particularly for companies without superior technologyH3 and H4HypothesesH1: Multinational Corporations (MNCs) in countries with weak IPR protection obtains insignificant patent premium.H2: Loca

10、l firms in countries with weak IPR protection obtains positive patent premium.H3: The patent premium of MNCs in countries with weak IPR protection increases with the intensity of competition.H4: The patent premium of local firms in countries with weak IPR protection increases with the intensity of c

11、ompetition.H5: The patent premium of local firms is higher than the patent premium of MNCs in countries with weak IPR protection . (to be tested)H6: Intensity of competition stimulates higher patent premium for local firms than for MNCs in countries with weak IPR protection. (to be tested)DataAnnual

12、 Survey of Industrial Enterprises, National Bureau of Statistics of ChinaCoverage:1999-2007; all state-owned firms and non-state-owned firms with more than RMB five million in revenueE.g. 146,251and 336,732 manufacturing firms in the dataset for the years 1999 and 2007, respectively50 firm-level sta

13、tistical indicators, including input, output, R&D expenditure, capital composition, employment, geographical location, the four-digit industry in which a firm operates, ownership status, and assets and liabilities.China Patent Abstract Database, State Intellectual Property Office (SIPO) of ChinaCove

14、rage: Over four million patent applications submitted to SIPO during the period of 19852009Information includes patent application and publication number, application and publication date, patent number, title, international patent classification (IPC) class, abstract, claims, legal status9DatasetNi

15、ne students assist manually matching firms in in the precision instruments and office machinery industry (a intensive patenting industry)Each firm was searched independently by two studentsDiscrepancy is further analyzed in the second round search to achieve the high accuracy Dataset for this study:

16、 3,244 firms in the industry; 947 patenting firms (677 domestic and 270 foreign); 2297 non-patenting firms (1,401 domestic and 896 foreign)Empirical strategyCalculation of TFPOlley and Pakes (1996, Econometrica)s estimatorLevinsohn and Petrin (2003, Rev Econ Stud)s estimator as robustness check Esti

17、mation of Patent premiumA matching estimator followed by difference-in-difference estimationfirm size (li,-1 ), ownership status (state i,-1, collective i,-1, private i,-1, HKMT i,-1 and foreign i,-1), year and four-digit industry dummies11Empirical strategyCalculate the Herfindahl index for each of

18、 the 24 four-digit industries every yearAverage the index for each industry Rank the averages12RankFour-digit industryAverage Herfindahl indexCompetition141110.022Strong241300.022Strong341420.024Strong441120.041Strong541190.042Strong641130.050Strong741280.058Strong841410.058Strong941220.071Strong104

19、1140.093Strong1141230.102Strong1241900.130Strong1341150.134Weak1441540.138Weak1541530.139Weak1641290.139Weak1741550.157Weak1841260.158Weak1941210.175Weak2041590.276Weak2141250.383Weak2241520.513Weak2341510.531Weak2441240.733WeakResults: General domestic and foreign firmst01234567General domestic .06

20、0*(.017).11*(.027).075*(.029).066*(.036).19*(.055).21*(.060).26*(.081).25(.20)N0 treated38428720612795633310N0 controls482734242355144894460024966General foreign .012(.024).028(.028).0072(.034).083(.049).016(.058).045(.062)-.040(.074).16(.12)N0 treated1631341057055392911N0 controls374928602123133096

21、565838014613Domestic and foreign facing strong and weak competitiont01234567Domestic, strong competition.056*(.020).12*(.029).10*(.032).067*(.042).24*(.063).18*(.052).18*(.066).034(.095)N0 treated3232421691007750279N0 controls417929792055126982853123863Domestic, weak competition-.020(.047).035(.072)

22、-.017(.064).084(.074).11(.077).26(.19)N/A1N/A1N0 treated60423323181272N0 controls648445300179116691116Foreign, strong competition.043*(.025).031(.028).030(.035).046(.040).093*(.048).11*(.059).024(.074).16(.13)N0 treated131112886047332310N0 controls2888222316791161844576328142Foreign, weak competition-.13*(.066).048(.093)-.077(.10).29(.22)-.34(.23)-.3