Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis

Abstract

The development of a difference-in-differences estimator is a new move in patent policy evaluation research. However, such an estimator neglects the possibility that academic patent activities follow a spatial autoregressive process with respect to the dependent variable. The objective of this study was to propose a spatial difference-in-differences estimator accounting for possible spatial spillover effects. In this study, an empirical analysis of a sample of 31 Chinese provinces from 2010 to 2019 indicates that an incentive patent policy has a positive impact on the output and commercialization of academic patents, with positive effects also spilling over into neighboring provinces. This study further found that incentive patent policies play a placebo role in academic patent activities. Provincial patent policies are merely a proxy for other variables that characterize the systemic differences between provinces that implement patent policies and those that do not. Therefore, the promotion of academic patent activities cannot be attributed to policy incentives.

Spatial Interactions and the Commercialisation of Academic Patents: The Chinese Experience

“…This indicates that a university has made achievements in the commercialisation of academic patents, and it is easy to be imitated by other nearby universities, which will promote the development of academic patent commercialisation in these nearby universities. It can be seen that there is a positive spatial spillover effect in the commercialisation of academic patents between neighbouring universities (Gu, 2021b). These results demonstrate that neighbouring universities are interdependent, and that there are strategic interactions, rather than being independent of each other (Gu, 2012(Gu, , 2013.…”

High-Speed Rails and City Innovation System: Empirical Evidence from China

“…The spatial difference-in-differences (SDiD) model has been proven in previous studies to deal effectively with the abovementioned problems [77,78]. Therefore, in this study, we drew on the work of Heckert [75] and Gu [79] and modified the difference-in-differences equation as follows:…”

Spatiotemporal Difference-in-Differences: A Dynamic Mechanism of Socio-Economic Evaluation

“…In Gu [16] policy evaluation research, DID estimator is renewed as development in academic patent activities following a spatial autoregressive process with respect to the dependent variable. The DID is proposed as a spatial DID estimator to account for spatial spillover effects.…”

“…The traditional DID method ignores the geographical proximity and spatial spillover effects of academic patent activities. Gu [16] shows the spatial DID model is used to find out three treatment effects, that is, treatment effects based on patent incentive policies and spillover effects within the treatment and control groups. Spatial DID models, including the spatial dependence between adjacent provinces, effectively investigate the spatial spillover effects of policies.…”

“…Results of placebo tests[16].4)SXL-SDID> spmatrix create contiguity W if year == 2010 >spxtregress NGP treatafter PGDP NCU TSR NIE i.time,re ivarlag (W: DX)…”