02180cas a2200265 a 4500 AALejournalIMF017309 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475563139 1018-5941 BD-DhAAL BD-DhAAL He, Hui. China's Rising IQ (Innovation Quotient) and Growth : Firm-level Evidence / Hui He, Nan Li, Jing Fang. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (41 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcome by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007. We find strong evidence that within-firm increases in patent stock are associated with increases in firm size, exports, and more interestingly, total factor productivity and new product revenue share. Event studies using first-time patentees as the treatment group and non-patenting firms selected based on Propensity-Score Matching method as the control group also demonstrate similar effects following initial patent application. We also find that although state-owned enterprises (SOEs) on average have lower level of productivity and are less innovative compared to their non-state-owned peers, increases in patent stock tend to be associated with higher productivity growth among SOEs, especially for patents with lower innovative content. The latter could reflect the preferential government policies enjoyed by SOEs. Mode of access: Internet Fang, Jing. Li, Nan. IMF Working Papers; Working Paper ; No. 2016/249 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/249/001.2016.issue-249-en.xml IMF e-Library