Evaluation of economic incentives for Chinese university patent transfers: Is increasing the inventor share rate more effective?

This article examines the effectiveness of economic incentive policies implemented by Chinese universities to promote university patent transfer (UPT) and technology diffusion, focusing on increases in faculty inventors' share rates of patent-related revenues. Using data from the top 35 Chinese universities by patent applications and employing propensity score matching regression models, the study finds that raising the inventor's share of equity (ownership stakes) positively influences invention disclosure rates at both the individual patent and faculty levels and enhances UPT performance, including licensing revenues and contracts. However, increasing the inventor's share of royalty payments does not significantly improve invention disclosures or overall UPT outcomes and may even have adverse effects at the university level. The findings suggest that while higher equity shares can motivate faculty inventors, the policy's impact varies across organizational levels, and a balanced, multifaceted approach is necessary for effectively encouraging high-quality invention disclosures and successful technology transfer in Chinese universities.