Technology breakthrough borders: impact of cross-border green patents on firms’ environmental performance

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International Review of Economics & Finance·2026-02-27·Peer-reviewed·View original paper ↗·Follow this topic (RSS)
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  • ✔ Peer-reviewed source
  • ✔ Published in indexed journal
  • ✔ No retraction or integrity flags

Overview

This study investigates the impact of cross-border green patents acquired by host-country firms on their environmental performance, utilizing data from Chinese listed firms. The research addresses a gap in the literature by examining whether and through what mechanisms international patent acquisition contributes to environmental performance improvements at the firm level. Cross-border green patents are conceptualized as critical conduits for technical knowledge transfer that can facilitate environmental improvements in recipient firms.

Methods and approach

The study employs empirical analysis on a dataset of Chinese listed firms to assess the relationship between cross-border green patent acquisition and environmental performance metrics. Mechanism testing is conducted to identify mediating pathways through which the patent effect operates. Heterogeneity analysis examines differential effects across firm subgroups stratified by industry technology intensity, regional environmental governance priorities, and firm maturity stage.

Key Findings

Cross-border green patents demonstrate a statistically significant positive effect on host-country firm environmental performance. Mediation analysis reveals three primary mechanisms: promotion of green technological progress, enhancement of executive-level green cognition, and importation of green intermediate goods. The positive effect exhibits pronounced heterogeneity, with magnified effects observed in technology-intensive industries, regions characterized by elevated environmental governance priorities, and firms in maturity stages of development.

Implications

The findings establish cross-border green patent acquisition as a substantive policy lever for improving environmental performance in host-country firms. This mechanism operates through both technological pathways and organizational cognitive dimensions, suggesting that effective utilization of international patent knowledge requires both technical absorption capacity and managerial environmental orientation. The heterogeneous effects indicate that policy interventions targeting cross-border green patent adoption should account for industry characteristics, regional governance contexts, and firm life-cycle stage to maximize environmental outcomes.

Disclosure

  • Research title: Technology breakthrough borders: impact of cross-border green patents on firms’ environmental performance
  • Authors: Shujie Yao, Zhenya Sun, Jing Fang, Yingjie Li
  • Institutions: China People's Police University, Chongqing University, Hangzhou Normal University, Liaoning University, Shandong University of Technology
  • Publication date: 2026-02-27
  • DOI: https://doi.org/10.1016/j.iref.2026.105060
  • OpenAlex record: View
  • Image credit: Photo by MR-PANDA on Pixabay (SourceLicense)
  • Disclosure: This post was generated by Claude (Anthropic). The original authors did not write or review this post.

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