Does a faster patent grant broaden innovation? evidence from China’s patent fast-track examination reform

As a major institutional innovation designed to improve the timeliness of patent-right confirmation, the patent fast-track examination system plays an important role in shaping firms’ innovation incentives. Using panel data on Chinese A-share listed companies, this study examines whether exposure to the patent fast-track examination system affects firms’ innovation boundaries and investigates the underlying mechanisms. The results show that exposure to the system significantly expands firms’ innovation boundaries, and this finding remains robust after a series of checks, including alternative variable definitions, controls for contemporaneous policy shocks, and corrections for potential selection issues. The effect is more pronounced for firms with stronger external knowledge infrastructure, greater innovation subsidies, higher human capital, and stronger innovation aspirations. Additional channel analyses suggest that policy exposure enhances firms’ innovation focus and strengthens their iterative innovation capability. In addition, the induced expansion of innovation boundaries is not associated with a rise in patent invalidation, but is accompanied by higher patent value and greater firm productivity, suggesting positive real economic consequences. These findings provide useful policy implications for improving patent examination institutions and fostering more exploratory innovation.