Patent Laws and Innovation in China

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Patent Laws and Innovation in China

Author Info

Linda Y. Yueh

Abstract

This paper explores whether the patent law and intellectual property rights (IPR) system have resulted in innovation in China during the reform period. It appears that the patent laws have produced a stock of patents, where the success rates of patent applications are fairly uniform across the country. As the IPR framework does not vary across provinces, we asked which factors would explain innovation in China. We find the main determinants of patents to be R&D expenditure and foreign direct investment, but not the number of researchers, though the level of human capital matters. We conclude that the patent laws in China have been associated with innovation that has accompanied economic growth despite imperfections in the legal system.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 271.

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Date of creation: 2006
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Handle: RePEc:oxf:wpaper:271

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Find related papers by JEL classification:
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
K29 - Law and Economics - - Regulation and Business Law - - - Other
O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
K19 - Law and Economics - - Basic Areas of Law - - - Other

This paper has been announced in the following NEP Reports:

NEP-ALL-2006-09-23 (All new papers)
NEP-CNA-2006-09-23 (China)
NEP-DEV-2006-09-23 (Development)
NEP-INO-2006-09-23 (Innovation)
NEP-LAW-2006-09-23 (Law & Economics)
NEP-REG-2006-09-23 (Regulation)
NEP-SEA-2006-09-23 (South East Asia)
NEP-TRA-2006-09-23 (Transition Economics)

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