How does intellectual property protection contribute to the digital transformation of enterprises?

This paper examines the effect of Intellectual Property Protection (IPP) on firm digital transformation (DT) using a three-dimensional panel dataset of Chinese-listed companies and cities from 2012 to 2020. Our findings reveal a significant and robust positive relationship between IPP and firm DT, even after addressing endogeneity concerns. Mechanism analysis demonstrates that IPP promotes firm DT by alleviating financing constraints and incentivizing research and development (R & D) investments. The results highlight the role of IPP in fostering an environment conducive to digital transformation and provide valuable insights for policymakers and firms aiming to enhance their digital capabilities.

Automated summary

This paper investigates the impact of Intellectual Property Protection (IPP) on firm digital transformation (DT) in China using a panel dataset from 2012 to 2020. The results show a significant and robust positive relationship between IPP and firm DT, even after addressing endogeneity concerns. Mechanism analysis reveals that IPP facilitates firm DT by alleviating financing constraints and encouraging research and development (R&D) investments. This research highlights the importance of IPP in creating an environment conducive to digital transformation and provides valuable insights for policymakers and firms aiming to enhance their digital capabilities.