NEW PAPER – Pursuing justice or protecting local firms? Shenzhen courts move beyond judicial local protectionism

I have recently published a new research paper for the journal “R&D Management”, together with Antonio Crupi, Postdoctoral Research Assistant at the Institute of Management of Sant’Anna School of Advanced Studies and Zhang Yafeng from the Chinese Academy of Social Sciences of Beijing.

The title of the paper is “Pursuing justice or protecting local firms? Shenzhen courts move beyond judicial local protectionism” and is available at this link.

Here is some information on its contents.

Emerging economies represent a vivid market for firms worldwide who are massively investing in R&D. This tendency is generating an increase in the number of intellectual property (IP) registrations and is expanding the markets for IP. However, emerging economies tend to show unfair judicial systems, being unable to ensure IP rights protection, and to allow companies to benefit from their inventions. China is one of the most important emerging economies, and both domestic and foreign companies are investing a considerable amount of money in R&D and IP activities, especially in innovative cities such as Shenzhen.

In this study, we aim to investigate whether the Chinese judicial system, using the city of Shenzhen as our empirical context, is fair in protecting IP rights. We use data about IP litigations from 2014 to 2016, targeting the three most relevant outcomes: settlement, judgment, and the amount of damage awards recognized by the court.

The study shows no evidence that Shenzhen courts rule in favor of local firms, and the findings show consistency regarding settlement, the winning probability in judgment, and amount of damage awards. Accordingly, we derive managerial implications demonstrating that Shenzhen is a very international arena and firms act following the classic strategic theories of innovation appropriation.