Intellectual property rights protection and sustainable innovation performance: The mediating role of technology spillover

Abstract Despite extensive research into the factors driving sustainable innovation, there remains a significant gap in understanding the impact of intellectual property rights (IPR) protection. This study delves into how IPR protection influences sustainable innovation performance and explores the mechanism of technology spillover and the condition of absorptive capacity. Analyzing data from 266 firms in Vietnam, our findings indicate a positive correlation between IPR protection and technology spillover. Additionally, we find that technology spillover mediates the relationship between IPR protection and sustainable innovation performance. Interestingly, we show that absorptive capacity bolsters the relationship between technology spillover and sustainable innovation performance. These insights offer valuable additions to the existing literature on IPR protection and sustainable innovation literature. Implications for both theory and practice are discussed in detail.