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Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion

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  • Markus Eberhardt
  • Christian Helmers
  • Zhihong Yu

Abstract

This paper analyses characteristics and determinants of the recent explosion of patent filings by Chinese firms both in China and the United States. We construct a firm-level dataset by matching USPTO and SIPO patents to Chinese manufacturing census data for the period 1999-2006. Using this integrated firm-level dataset, we show that the patent explosion is accounted for by a tiny, highly select group of Chinese companies in the information & communication technology (ICT) equipment industry. This handful of ICT companies accounts for nearly all Chinese USPTO patent filings as well as the vast majority of domestic SIPO patents despite there being a larger number of Chinese companies distributed across a wider range of industries that seeks patent protection domestically. Our empirical analysis further suggests that firms patenting in both US and China are considerably younger, larger and substantially more export-oriented than firms patenting exclusively in China. Our study contributes to the debate on China’s innovative prowess and its potential to transition from an imitator to an innovator economy.

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  • 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.
    • Handle: RePEc:csa:wpaper:2011-15
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    Cited by:

    1. Naudé, Wim & Szirmai, Adam & Lavopa, Alejandro, 2013. "Industrialization Lessons from BRICS: A Comparative Analysis," IZA Discussion Papers 7543, Institute of Labor Economics (IZA).
    2. Kyriakos Drivas & Claire Economidou & Konstantinos N. Konstantakis & Panayotis G. Michaelides, 2022. "Technological Leaders, Laggards and Spillovers: A Network GVAR Analysis," Open Economies Review, Springer, vol. 33(2), pages 231-269, April.
    3. Prud'homme, Dan, 2012. "How certain indigenous innovation and other patent policies hamper innovation in China," MPRA Paper 51710, University Library of Munich, Germany, revised Dec 2012.
    4. Prud'homme, Dan, 2012. "Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China," MPRA Paper 43299, University Library of Munich, Germany, revised Dec 2012.
    5. Taoran Chen & Zhibo Tan & Xiaobo Zhang, 2022. "Does female labor scarcity encourage innovation? Evidence from China's gender imbalance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(2), pages 418-447, April.
    6. Ulrich Schmoch & Birgit Gehrke, 2022. "China’s technological performance as reflected in patents," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(1), pages 299-317, January.
    7. Siping Luo & Mary E. Lovely & David Popp, 2013. "Intellectual Returnees as Drivers of Indigenous Innovation: Evidence from the Chinese Photovoltaic Industry," NBER Working Papers 19518, National Bureau of Economic Research, Inc.
    8. Zi‐Lin He & Tony W. Tong & Yuchen Zhang & Wenlong He, 2018. "Constructing a Chinese Patent Database of listed firms in China: Descriptions, lessons, and insights," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 579-606, September.
    9. Tan, Zhibo & Zhang, Xiaobo, 2016. "Does female labor scarcity encourage innovation?: Evidence from China’s gender imbalance:," IFPRI discussion papers 1540, International Food Policy Research Institute (IFPRI).
    10. Lee Branstetter & Guangwei Li & Francisco Veloso, 2014. "The Rise of International Coinvention," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 135-168, National Bureau of Economic Research, Inc.
    11. 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.
    12. Stefano Comino & Fabio Maria Manenti, 2015. "Intellectual Property and Innovation in Information and Communication Technology (ICT)," JRC Research Reports JRC97541, Joint Research Centre.
    13. Stuart J.H. Graham & Cheryl Grim & Tariqul Islam & Alan C. Marco & Javier Miranda, 2018. "Business dynamics of innovating firms: Linking U.S. patents with administrative data on workers and firms," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(3), pages 372-402, September.
    14. Wan-Hsin Liu, 2013. "The role of proximity to universities for corporate patenting: provincial evidence from China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 273-308, August.
    15. Paul Conway, 2016. "Achieving New Zealand's productivity potential," Working Papers 2016/01, New Zealand Productivity Commission.

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    Keywords

    China; firm; patents;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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