Intellectual property system and urban green innovation: Evidence from China

Green innovation (GI) can enable win‒win style economic and ecological benefits. Using China's pilot scheme for the construction of the intellectual property protection (IPP) system as an example, this paper empirically tests the impact of IPP system reform on the GI level and its spatial spillover effect. The results show that IPP system reform has significantly promoted urban GI, indicating that a progressive reform model characterized by experimentalist governance is applicable to innovation policy practices in developing countries. The dynamic effect analysis shows that IPP system reform can be applied to continuously promote urban GI. The mechanism analysis shows that such use of IPP system reform can improve the level of urban GI by promoting investment and talent agglomeration, confirming the viewpoint of the institutionalist school. The heterogeneity analysis shows that IPP system reform plays a stronger role in promoting GI in peripheral cities than in central cities, in cities with lower rather than higher scientific and educational levels and in cities with weaker rather than stronger GI capacity. Consistent with the theory of institutional diffusion, IPP system reform has a significant spatial spillover effect, promoting GI activities in surrounding cities while working to improve the local GI level. This paper affirms the effectiveness of the pilot regional innovation policy with Chinese characteristics, with important theoretical significance.