The impact of patent infringement litigation decisions on firms' innovation performance in China.

ABSTRACT: The judiciary protects the value of innovation through remedies such as injunctions and damages when patent rights are infringed, adjusting the expected returns on future innovation activities for firms. Based on data from 1,062 Chinese firms involved in Patent Infringement Litigations (PILs), this study uses three-way fixed-effects Poisson panel regression models to examine the dynamic impacts of a PIL win-or-lose decision on breakthrough and incremental innovation performance for plaintiff and defendant firms. The study finds that plaintiff micro and small-sized enterprises (MSEs) can only engage in short-term breakthrough innovation after winning a PIL. Plaintiff medium and large-sized enterprises (MLEs) tend to adopt the patent defence strategy after winning, while losing a case positi

SUBMITTER: Deng Y 

PROVIDER: S-EPMC11464761 | biostudies-literature | 2024 Oct

REPOSITORIES: biostudies-literature