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

Listed author(s):
  • Hu, Albert Guangzhou

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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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
Contact details of provider: Web page: http://www.elsevier.com/locate/respol

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  1. Susanto Basu & David N. Weil, 1998. "Appropriate Technology and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 113(4), pages 1025-1054.
  2. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
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  7. repec:fth:harver:1473 is not listed on IDEAS
  8. Robert C. Feenstra, 1999. "Discrepancies in International Data: An Application to China-Hong Kong Entrepot Trade," American Economic Review, American Economic Association, vol. 89(2), pages 338-343, May.
  9. Robert Evenson & Daniel Johnson, 1997. "Introduction: Invention Input-Output Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 149-160.
  10. 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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