The Effects of Intellectual Property Rights Protection on Technology Innovation:Empirical Analysis Based on Technology Trading Market and Provincial Panel Data in China

Using provincial panel data from 1997 to 2008,this paper regards the proportion of technology market turnover to local GDP as regional intellectual property rights protection level and employs system GMM estimation and threshold regression to empirically analyze the effect of intellectual property rights protection on technology innovation.The results show that the enhancement of intellectual property rights protection obviously promotes technology innovation;there is a complementary relationship between intellectual property rights protection and RD physical capital input and a substitutive relationship between intellectual property rights protection and RD human capital input;the levels of intellectual property rights protection in most of China have exceeded the threshold value and the enhancement of intellectual property rights protection cannot obstruct technology innovation.Therefore,China should enhance intellectual property rights protection to improve its indigenous innovation capacity.