Surpassing Policy Thresholds: How R&D Investment Sparks Innovation Vitality Under Dual Incentives of Taxation and Intellectual Property?

Based on the panel data of 31 provinces in China from 2011-2022, the threshold model analysis shows that: regional R&D investment significantly improves the quantity and quality of innovation; low-tax incentives are most beneficial to quantity, and medium-tax incentives are most beneficial to quality; medium-intensity IP protection is optimal; low-tax in the south and medium-tax in the north are the best incentives; high R&D in neighboring regions inhibits local quality; and the quantity of innovation moderates the impact of R&D on quality. It provides a basis for precise regional innovation policies.