When data become protected assets: intellectual property protection and corporate digital innovation advantage

This study examines whether and how data intellectual property protection enhances corporate digital innovation advantage. Using Chinese listed firms from 2018 to 2024, we exploit the staggered implementation of data intellectual property pilots as a quasi-natural experiment and employ a multi-period difference-in-differences model. The results show that data intellectual property protection significantly strengthens corporate digital innovation advantage. Mechanism tests indicate that this effect operates by alleviating credit constraints and facilitating the aggregation and sharing of data knowledge. The effect is more pronounced among firms located farther from banks, firms in non-decline life-cycle stages, non-high-tech firms, and firms in regions with better-developed technology factor markets. Further analyses show that data intellectual property protection directly improves total factor productivity and operating profit growth, while stronger digital innovation advantage further amplifies these performance gains. This study provides firm-level evidence on the innovation and economic consequences of data property-rights institutions and offers policy implications for improving data property-rights systems and promoting high-quality digital innovation.