{
  "title": "China’s Rising IQ (Innovation Quotient) and Growth: Firm-level Evidence",
  "publication": "IMF Working Papers, December 22, 2016",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/chinas-rising-iq-innovation-quotient-and-growth-firm-level-evidence-44494",
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  "summary": "This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcome by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007.",
  "sections": [
    {
      "heading": "Summary and central question",
      "content": "- This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcomes by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007.\n- Authors: Hui He, Nan Li, Jing Fang\n- Date: December 22, 2016"
    },
    {
      "heading": "Key empirical findings",
      "content": "- Within-firm increases in patent stock are associated with increases in:\n  - firm size\n  - exports\n  - total factor productivity\n  - new product revenue share\n- Event-study evidence:\n  - First-time patentees are used as the treatment group.\n  - Non-patenting firms selected based on Propensity-Score Matching method are used as the control group.\n  - These event studies demonstrate similar positive effects following initial patent application.\n- State-owned enterprises (SOEs):\n  - On average have lower levels of productivity and are less innovative compared to their non-state-owned peers.\n  - Increases in patent stock tend to be associated with higher productivity growth among SOEs, especially for patents with lower innovative content.\n  - The stronger association for SOEs could reflect preferential government policies enjoyed by SOEs."
    },
    {
      "heading": "Methodology and data",
      "content": "- Time period covered: 1998-2007\n- Dataset: Combination of detailed firm balance sheet information with firm patent data.\n- Empirical approaches:\n  - Within-firm panel analysis linking patent stock changes to firm outcomes.\n  - Event studies using first-time patentees and Propensity-Score Matching to construct controls."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subject: Capital productivity, Economic sectors, Financial institutions, Production, Productivity, Public enterprises, Stocks, Total factor productivity\n- Keywords: Capital productivity, China, data combination, Growth, Innovation, leverage ratio, ownership status, Patent, patent scope, patent stock, patenting firm, production performance, Productivity, Public enterprises, R&D, SOE Reforms, state-owned enterprise, Stocks, Total factor productivity, WP\n\n---\n\n Content in this bundle\n\n- China’s Rising IQ\n  - China’s Rising IQ (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - China’s Rising IQ (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/chinas-rising-iq-innovation-quotient-and-growth-firm-level-evidence-44494"
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    "Authors: Hui He, Nan Li, Jing Fang",
    "Published: December 22, 2016",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475563139.001",
    "This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcomes by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007.",
    "Authors: Hui He, Nan Li, Jing Fang",
    "Date: December 22, 2016",
    "Within-firm increases in patent stock are associated with increases in:",
    "Event-study evidence:",
    "State-owned enterprises (SOEs):",
    "Time period covered: 1998-2007",
    "Dataset: Combination of detailed firm balance sheet information with firm patent data.",
    "Empirical approaches:",
    "Subject: Capital productivity, Economic sectors, Financial institutions, Production, Productivity, Public enterprises, Stocks, Total factor productivity",
    "Keywords: Capital productivity, China, data combination, Growth, Innovation, leverage ratio, ownership status, Patent, patent scope, patent stock, patenting firm, production performance, Productivity, Public enterprises, R&D, SOE Reforms, state-owned enterprise, Stocks, Total factor productivity, WP",
    "**China’s Rising IQ**"
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