Journal of Guizhou University of Finance and Economics ›› 2023 ›› Issue (05): 31-40.

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Intellectual Property Protection and Bias Technological Change

LIU Junting1, DONG Dandan1, LI Kaijie2   

  1. 1. School of Finance and Trade, Liaoning University, Shenyang, Liaoning 110036, China;
    2. School of International Business and Economics, Henan University of Economics and Law, Zhengzhou, Henan 450046, China
  • Received:2022-11-10 Online:2023-09-15 Published:2023-09-21

Abstract: Biasing on technological change that is a key variable affecting income distribution and economic growth, this paper constructs a theoretical model of intellectual property protection and technological progress bias under the framework of open trade, and then uses the normalized supply side system method to measure the technology progress bias of China's provinces. Combined with the data of 30 provinces in China from 2000 to 2017, this paper empirically analyzes the impact of intellectual property protection on technological progress bias, enriching the research of bias technical change.The results show that:(1) The improvement of intellectual property protection level can promote China's technological progress in favor of capital. The results are still robust with the instrument variable method, alternative explanatory variables, Probit panel estimation and PSM-DID estimation. (2) The impact of intellectual property protection on technological progress bias is heterogeneous. The impact of intellectual property protection on technological progress bias is stronger in provinces which are located in the central, western or with relatively low level of intellectual property rights. (3) From the perspective of impact mechanism, international trade is an important channel for intellectual property protection to influence technological progress bias, in which import trade plays a positive role, while export trade plays a negative inhibitory role.

Key words: intellectual property protection, international trade, technological progress bias

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