•We examine the sharp increase of foreign patent applications in China.•Drawing on industry level data from 19 countries and regions, we test the market covering and competition threat hypotheses.•We found… Click to show full abstract
•We examine the sharp increase of foreign patent applications in China.•Drawing on industry level data from 19 countries and regions, we test the market covering and competition threat hypotheses.•We found that foreign patent applications in China depend on the market decision and patent decision of competitor countries.•Foreign patent applications in China is also influenced significantly by the reform of the Chinese patent system.
               
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