TITLE:
The AI Patent Paradox in Healthcare: The Inhibitory Effect of Strategic Patent Applications on Corporate Digital Transformation
AUTHORS:
Kaixuan Wu, Hanyun Wei, Linhui Ni, Danqin Bei
KEYWORDS:
Artificial Intelligence, Healthcare Industry, AI Patents, Digital Transfor-mation, Patent Paradox, Resource Crowding-Out
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.13 No.10,
October
31,
2025
ABSTRACT: In the era of AI-driven healthcare digital transformation, patents are commonly perceived as indicators of a firm’s innovative capability. However, based on 2021-2023 data of Chinese A-share listed healthcare companies, this study finds that an increase in AI patent applications does not significantly advance firms’ digital transformation. On the contrary, when the share of patents in the highly abstract conceptual tier and the broad application tier is higher, the digitalization process is significantly inhibited. Mechanism tests reveal that this patent paradox stems from the resource-crowding-out effect of strategic patent filings, which is particularly pronounced in firms with stronger financing constraints. The study calls for a policy shift from “rewarding quantity” to “promoting practical implementation”, guiding firms back to the essence of technology.