Purpose Based on the theories of ambidextrous innovation and dynamic capabilities, this paper examines both the theoretical and empirical aspects of the impact of intellectual property (IP) protection on firms' ambidextrous innovation and its underlying mechanisms. The findings offer new insights into the influence of IP protection on firms' ambidextrous innovation. Design/methodology/approach A conceptual model is proposed based on dynamic capabilities theory, and a DID approach with multiple time points is employed to explore the impact of IP protection on the ambidextrous innovation of listed firms in China from 2007 to 2022, along with the underlying mechanisms. Findings The findings indicate that IP protection significantly enhances firms' ambidextrous innovation capabilities, with the results remaining robust after various tests. Heterogeneity analysis reveals that the effect is more pronounced in non-state-owned enterprises and technology-intensive industries. Further investigation suggests that improving resource allocation efficiency and reducing perceptions of economic policy uncertainty(EPU) are key mechanisms driving the enhancement of ambidextrous innovation. IP protection fosters the positive transformation of ambidextrous innovation, with the enhancement of knowledge diffusion and diversification playing a pivotal role in this process. Originality/value First, building on previous research, this study constructs a conceptual model to examine the impact of IP protection on firms' ambidextrous innovation from the perspective of institutional stability. This approach offers a more comprehensive view of current IP protection studies. Second, by integrating intellectual property theory with dynamic capabilities theory, this paper expands the application of dynamic capabilities theory from the standpoint of IP protection, thereby enriching the theoretical connotations of dynamic capabilities.
Jiang et al. (Mon,) studied this question.