Can the Establishment of Intellectual Property Demonstration Cities Stimulate Green Technology Innovation of Enterprises in China?

This study focuses on whether the policy of the Intellectual Property Demonstration Cities (IPDCs) in China impacts green innovation in enterprises. Employing the panel data from China’s A-share listed companies and a time-varying difference-in-difference approach, our empirical results demonstrate that IPDC policy can foster local enterprises’ green innovation significantly through two channels, exactly augmenting the enhancing judicial protection and stimulating R&D investment. However, such an impact is more pronounced for high-tech and non-state-owned enterprises. The study carries important policy implications for the Chinese government in promoting green technology innovation in enterprises.