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Patent laws and innovation in China

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  • Yueh, Linda
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    Abstract

    This paper explores whether the patent laws and intellectual property rights (IPR) system in China have resulted in innovation during the reform period. Subject to criticism on account of imperfect enforcement, the patent law system has produced a stock of patents which has grown rapidly alongside economic growth. The success rate of patent applications is similar across the country despite the considerable regional disparities in income and in the level of innovation. This paper presents a simple model of patent production in China derived from the patent law system that also considers the relevant contextual factors that could influence innovation. The main innovation input of R&D personnel is found to be a significant determinant of patents. While per capita GDP increases the propensity to innovate across all regions, notable heterogeneity exists whereby the coastal, central and interior areas are associated with different factors that produce innovation and influence the innovation process. The paper concludes that China's imperfect IPR system is nevertheless generating innovation as the country develops and hinges on the key factor of researchers.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Review of Law and Economics.

    Volume (Year): 29 (2009)
    Issue (Month): 4 (December)
    Pages: 304-313

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    Handle: RePEc:eee:irlaec:v:29:y:2009:i:4:p:304-313

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    Web page: http://www.elsevier.com/locate/irle

    Related research

    Keywords: Intellectual property rights Patent laws Law and economics Innovation Economic growth China;

    References

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    1. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, vol. 12(3), pages 247-77, July.
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    8. Paul Klemperer, 1990. "How Broad Should the Scope of Patent Protection Be?," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 113-130, Spring.
    9. Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
    10. Borensztein, Eduardo & Ostry, Jonathan D, 1996. "Accounting for China's Growth Performance," American Economic Review, American Economic Association, vol. 86(2), pages 224-28, May.
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    14. repec:fth:harver:1473 is not listed on IDEAS
    15. Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
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    Cited by:
    1. Markus Eberhardt & Christian Helmers & Zhihong Yu, 2011. "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," CSAE Working Paper Series 2011-15, Centre for the Study of African Economies, University of Oxford.
    2. Huang, Can & Wu, Yilin, 2011. "State-led technological development: A case of China's nanotechnology development," MERIT Working Papers 013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Belton M. Fleisher & Mi Zhou, 2010. "Are Patent Laws Harmful to Developing Countries? Evidence from China," Working Papers 09-07, Ohio State University, Department of Economics.

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