The new patent law and enterprise digital technology Innovation: An analysis of regulatory effects based on financing constraints

This study investigates the impact of intellectual property (IP) protection on corporate digital technology innovation, using data from Chinese listed companies spanning from 2013 to 2022. It explores the context of the fourth amendment to the Patent Law. The findings indicate that IP protection plays a crucial role in fostering digital technology innovation within firms, while financing constraints negatively affect such innovation. Additionally, IP protection indirectly promotes digital technology innovation by easing financing constraints. Further analysis reveals that the effect of financing constraints on innovation varies significantly between high-tech and non-high-tech industries. Moreover, corporate leverage demonstrates a threshold effect in the relationship between IP protection and digital technology innovation, with the impact differing at various leverage levels.