Based on the
data of 35 major cities in China, this paper examines the impact of the rising
housing prices on the innovation activities of Chinese A-share listed companies.
We find that the increase in housing prices significantly inhibit the number of
patent applications and the proportion of R&D expenditure of listed
corporations. In addition, we further consider the ownership structure, and
find that the impact of housing price on corporate innovation is more pronounced
in state-owned enterprises. This paper reveals the negative impact of a booming
real estate market on the real economy from the perspective of innovation in China.
JEL classification numbers：E44 G31 O32
Keywords: real estate markets, innovation, hosing