Does Enforcement of Intellectual Property Rights Matter in China ...

Table 6: The effect of IP rights enforcement on patent output
The dependent variable is the number of innovation patents. For a detailed description of all variables, see Appendix 3. All
regressions include industry dummies as control variables. All independent variables are lagged by one year. The reported
coefficients in Column (1), (2), (4) and (5) are Poisson regressions. Column (3) and (6) present results obtained from the IV
regressions, with the instruments being the provincial number of Christian colleges by 1920 (Christian Colleges) and the dummy
which equals 1 when a province had a British concession during the late Qing Dynasty (British Settlement). Other covariates in the
first-stage regression are omitted for presentational convenience. The numbers in the parentheses are z-stat (t-stat) based on
standard errors adjusted for heteroskedasticity and the potential clustering of the residual at the provincial level. ***, **, * indicate
the coefficient is statistically different from zero at the 1-, 5-, and 10-percent level, respectively.
(1) (2) (3) (4) (5) (6)
Model Poisson Poisson
IV-Second
IV-Second
Poisson Poisson
stage: Poisson
stage: Poisson
Dependent variables Patent Patent Patent Patent Patent Patent
IPP1 9.550 4.530 9.748
(1.73)* (2.50)** (2.64)***
IPP2 0.339 0.310 0.373
(2.69)*** (6.17)*** (3.30)***
Corruption Control -0.076 -0.071 -0.203 -0.286
(-0.96) (-0.98) (-1.13) (-1.03)
Banking Development -0.110 -0.403 0.009 -0.104
(-1.11) (-2.16)** (0.09) (-0.71)
GDP Growth 4.521 6.151 3.355 5.181
(2.30)** (2.27)** (1.74)* (1.80)*
University -0.032 -0.049 -0.008 -0.011
(-1.11) (-1.64) (-1.01) (-1.21)
Metropolis 0.727 1.398 0.581 1.104
(1.96)** (2.83)*** (1.33) (1.89)*
Log(R&D Stock) 0.903 0.949 0.955 0.906 0.896 0.907
(7.08)*** (6.78)*** (6.38)*** (4.65)*** (7.81)*** (7.30)***
Log(Assets) 0.180 0.097 0.100 0.106 0.152 0.135
(1.65)* (1.10) (1.21) (1.54) (1.84)* (1.60)
Log(Firm Age) -0.069 -0.120 -0.036 -0.104 -0.209 -0.133
(-0.32) (-0.57) (0.18) (0.46) (1.07) (-0.63)
Constant -20.269 -13.687 -16.205 -14.573 -13.769 -13.995
(-3.21)*** (-4.89)*** (-4.68)*** (-5.09)*** (-7.63)*** (-7.55)***
Observations 14,374 14,374 14,374 13,316 13,316 13,316
Wald chi2 (Prob>chi2) 14538.37
(P=0.00)
23648.82
(P=0.00)
26924.07
(P=0.00)
19120.57
(P=0.00)
62345.51
(P=0.00)
54320.06
(P=0.00)
First Stage:
OLS
First Stage:
OLS
Dependent variables IPP1 IPP2
Christian Colleges 0.024 1.005
(16.31)*** (14.87)***
British Settlement 0.020 6.034
(7.28)*** (47.86)***
Observations 14,347 13,316
R-squared 18.97% 58.52%
Partial F-test of IVs 319.92 (p=0.00) 2670.00 (p=0.00)
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