INTELLECTUAL PROPERTY RIGHTS PROTECTION, VENTURE CAPITAL AND ENTREPRENEURSHIP IN THE AI INDUSTRY: EVIDENCE FROM INTELLECTUAL PROPERTY DEMONSTRATION CITIES

Based on a prefecture-level dataset of 258 cities from 2010 to 2019 and leveraging the quasi-natural experiment of China's Intellectual Property Demonstration Cities (IPDC) policy, this study employs the staggered difference-in-differences model to investigate how intellectual property rights protection shapes venture investment and AI entrepreneurship dynamics. The results show that IPDC policy significantly facilitates local AI entrepreneurship activities by amplifying venture capital inflows. The stimulating effect of IPDC policy on AI entrepreneurship is mediated by the location characteristics of cities. Spatial analysis reveals significant spillover effects, that is, neighboring cities within a 150 km radius benefit from IPDC policy implementation.