Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis

The development of a difference-in-differences estimator is a new move in patent policy evaluation research. However, such an estimator neglects the possibility that academic patent activities follow a spatial autoregressive process with respect to the dependent variable. The objective of this study was to propose a spatial difference-in-differences estimator accounting for possible spatial spillover effects. In this study, an empirical analysis of a sample of 31 Chinese provinces from 2010 to 2019 indicates that an incentive patent policy has a positive impact on the output and commercialization of academic patents, with positive effects also spilling over into neighboring provinces. This study further found that incentive patent policies play a placebo role in academic patent activities. Provincial patent policies are merely a proxy for other variables that characterize the systemic differences between provinces that implement patent policies and those that do not. Therefore, the promotion of academic patent activities cannot be attributed to policy incentives.