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Propensity to patent, competition and China's foreign patenting surge

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  • Hu, Albert Guangzhou

Abstract

Foreign applications for Chinese patents have been growing by over 30% a year. This paper explores two hypotheses in explaining the foreign patenting surge in China: market covering and competitive threat. With foreign companies more deeply engaged with the Chinese economy, returns from protecting their intellectual property in China have increased. As domestic Chinese firms' ability to imitate foreign technology gains strength and competition between foreign firms intensifies in the Chinese market, such competitive threat creates an urgency for protecting intellectual property. Using a database that comprises China's State Intellectual Property Office patents and the U.S. Patent and Trademark Office patents, I find strong support for the competitive threat hypothesis. The estimates imply that competition between foreign firms in China can account for 36% of the annual growth of foreign patenting in China.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 39 (2010)
Issue (Month): 7 (September)
Pages: 985-993

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Handle: RePEc:eee:respol:v:39:y:2010:i:7:p:985-993

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

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Keywords: Foreign patenting China Competition Imports;

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Cited by:
  1. Prud'homme, Dan, 2012. "A statistical analysis of China's patent quality situation and larger innovation ecosystem," MPRA Paper 51619, University Library of Munich, Germany.
  2. Choi, Suk Bong & Lee, Soo Hee & Williams, Christopher, 2011. "Ownership and firm innovation in a transition economy: Evidence from China," Research Policy, Elsevier, vol. 40(3), pages 441-452, April.
  3. Huang, Can & Jacob, Jojo, 2012. "Determinants of quadic patenting: Market access, imitative threat, competition and strength of intellectual property rights," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  4. Dang, Jangwei & Motohashi, Kazuyuki, 2013. "Patent statistics: a good indicator for innovation in China? Assessment of impacts of patent subsidy programs on patent quality," MPRA Paper 56184, University Library of Munich, Germany.
  5. Markus Eberhardt & Christian Helmers & Zhihong Yu, . "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," Discussion Papers 11/16, University of Nottingham, GEP.
  6. 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).
  7. Keupp, Marcus Matthias & Friesike, Sascha & von Zedtwitz, Maximilian, 2012. "How do foreign firms patent in emerging economies with weak appropriability regimes? Archetypes and motives," Research Policy, Elsevier, vol. 41(8), pages 1422-1439.

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