Author(s)

Qishui Chi, Yu Liu

Corresponding Author

Qishui Chi

Abstract

In the era of rapid development of science and technology, more than half of patents, technological innovations and new products in mainland China are originated from small and medium-sized enterprises. However, due to the credit rating, enterprise size constraints, it’s hard for the vast majority of SMEs to finance their own development. The adoption of intellectual property securitization financing can enable these enterprises to overcome the obstacles of traditional financing methods. Based on the monthly time series data of patent licensing from January 2002 to May 2018 in China, this paper focuses on the structural changes in the technology financing market, and the underlying causes of such structural changes. In this paper, the sequential determination of breakpoints is used. This method can make the checked breakpoints have the same limit distribution as those obtained from the global program method. After finding breakpoints, this article further identifies the intrinsic relationship between endogenous structural changes and policy events. This study can provide decision-making reference for the government and enterprises in developing or utilizing the technology financing market in mainland China.

Keywords

Patent; structure change; Endogenous breakpoint; Technology financing