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

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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.

Suggested Citation

  • Hu, Albert Guangzhou, 2010. "Propensity to patent, competition and China's foreign patenting surge," Research Policy, Elsevier, vol. 39(7), pages 985-993, September.
  • Handle: RePEc:eee:respol:v:39:y:2010:i:7:p:985-993
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    Cited by:

    1. Diekhof, Josefine & Cantner, Uwe, 2017. "Incumbents' responses to innovative entrants: A multi-country dynamic analysis," ZEW Discussion Papers 17-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Manish Srivastava & Tang Wang, 2015. "When does selling make you wiser? Impact of licensing on Chinese firms’ patenting propensity," The Journal of Technology Transfer, Springer, vol. 40(4), pages 602-628, August.
    3. Xie, Zhenzhen & Li, Jiatao, 2015. "Demand Heterogeneity, Learning Diversity and Innovation in an Emerging Economy," Journal of International Management, Elsevier, vol. 21(4), pages 277-292.
    4. repec:bla:worlde:v:40:y:2017:i:11:p:2424-2454 is not listed on IDEAS
    5. Christian O. Fisch & Joern H. Block & Philipp G. Sandner, 2016. "Chinese university patents: quantity, quality, and the role of subsidy programs," The Journal of Technology Transfer, Springer, vol. 41(1), pages 60-84, February.
    6. Felix Groba & Jing Cao, 2015. "Chinese Renewable Energy Technology Exports: The Role of Policy, Innovation and Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 60(2), pages 243-283, February.
    7. Guan, Jiancheng & Zhang, Jingjing & Yan, Yan, 2015. "The impact of multilevel networks on innovation," Research Policy, Elsevier, vol. 44(3), pages 545-559.
    8. Huang, Can & Jacob, Jojo, 2014. "Determinants of quadic patenting: Market access, imitative threat, competition and strength of intellectual property rights," Technological Forecasting and Social Change, Elsevier, vol. 85(C), pages 4-16.
    9. Markus Eberhardt & Christian Helmers & Zhihong Yu, "undated". "Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion," Discussion Papers 11/16, University of Nottingham, GEP.
    10. Huang, Can & Wu, Yilin, 2012. "State-led Technological Development: A Case of China’s Nanotechnology Development," World Development, Elsevier, vol. 40(5), pages 970-982.
    11. Wunsch-Vincent, Sacha & Kashcheeva, Mila & Zhou, Hao, 2015. "International patenting by Chinese residents: Constructing a database of Chinese foreign-oriented patent families," China Economic Review, Elsevier, vol. 36(C), pages 198-219.
    12. Hu, Albert G.Z. & Zhang, Peng & Zhao, Lijing, 2017. "China as number one? Evidence from China's most recent patenting surge," Journal of Development Economics, Elsevier, vol. 124(C), pages 107-119.
    13. 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.
    14. 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.
    15. Uwe Cantner & Josefine Diekhof, 2017. "Incumbents' Asymmetric Responses to Environmentally Friendly Entrants in the Automotive Industry," Jena Economic Research Papers 2017-004, Friedrich-Schiller-University Jena, revised 13 Jul 2017.
    16. 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.
    17. Mila Kashcheeva & Sacha Wunsch-Vincent & Hao Zhou, 2014. "International Patenting Strategies of Chinese Residents: an analysis of foreign-oriented patent families," WIPO Economic Research Working Papers 20, World Intellectual Property Organization - Economics and Statistics Division.
    18. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    19. 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.
    20. repec:wsi:ijitmx:v:14:y:2017:i:03:n:s0219877017500158 is not listed on IDEAS
    21. repec:spr:scient:v:101:y:2014:i:1:d:10.1007_s11192-013-1191-5 is not listed on IDEAS

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