Examining the Bidirectional Mechanism between Intellectual Property Protection and Regional Innovation: Evidence from China

Intellectual Property Protection (IPP) and regional innovation are pivotal drivers of economic growth and technological advancement across diverse geographical and cultural landscapes. This study investigates the bidirectional mechanism between IPP and regional innovation. Utilizing panel data from 260 Chinese cities from 2012 to 2021, our findings demonstrate that IPP has a significantly positive effect on regional innovation, and conversely, regional innovation exerts a significantly positive influence on IPP. This interaction reveals a bidirectional influence mechanism between them. These results highlight the sustained positive dynamic between IPP and regional innovation across various regional contexts within China. Notably, the study highlights the heterogeneities influenced by the comprehensive development index of intellectual property (CDIIP) and local intellectual property pilot policies. As regions advance in CDIIP, the bidirectional influence tends to diminish, whereas regions with targeted pilot policies experience intensified effects. This research provides practical implications for the formulation of effective IPP strategies and regional innovation incentive policies, offering significant insights for both policymakers and scholars in the field of knowledge economies.