Intellectual Property Policy and County Economic Growth: A Quasi-natural Experiment from the Intellectual Property Powering County Project

Abstract

As fundamental economic units, county economies play a crucial role in China's national economic system. However, it remains unclear whether intellectual property rights policies at the county level can promote economic growth. We used a quasi-natural experiment from the Intellectual Property Powering County Project (“the Project”) to measure their impact on county economic growth from 2009 to 2020, applying a multi-period difference-in-differences method. County economic growth indicators were measured using Enhanced Vegetation Index-calibrated nighttime light data from the Defense Meteorological Satellite Program and Visible Infrared Imaging Radiometer Suite. The findings demonstrated that the Project promoted economic growth significantly by incentivizing innovation, attracting high-tech and new-tech enterprises, and fostering brand creation. The Project also exhibited significant heterogeneity across districts and counties, along with spillover effects on economic growth in surrounding counties within approximately 80 kilometers.