The number of intellectual property rights cases brought before Chinese courts tripled between 2009 and 2013. Subsequently, China’s Leading Group of Overall Reform has established specific courts in Beijing, Shanghai and Guangzhou focusing on intellectual property. Transparency as well as the extent of judicial efficiency and independence will be important determinants in how effective these institutions are in protecting intellectual property rights and private returns to innovation. Strengthening patent rights and further rural financial development will be beneficial, but so will measures that encourage knowledge spillovers and reduce barriers to firm entry into rural sectors.