A great wall of patents: What is behind China's recent patent explosion?

Hu, Albert G. Z.; Jefferson, Gary H.

doi:10.1016/j.jdeveco.2008.11.004

Cited by 415 publications

(224 citation statements)

References 23 publications

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“…We refer to this type of imitation as e¢ cient imitation e t . 36 In the case of (b), another domestic 34 In Section 5.1, we consider a more general speci…cation b A t (i) = e A t (i) + g A t 1 + (A t 1 A t 1 ). 35 A parameter condition (P1) to be stated below will ensure that f t < 1.…”

Section: Imitation and Intellectual Property Rightsmentioning

confidence: 99%

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Stage-dependent intellectual property rights

Chu

Cozzi

Galli

2014

Journal of Development Economics

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Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal intellectual property rights (IPR) protection is stage-dependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, the country implements strong IPR protection to encourage domestic innovation. Therefore, the growth-maximizing and welfare-maximizing levels of patent strength increase as the country evolves towards the world technology frontier, and this dynamic pattern is consistent with the actual evolution of patent strength in China. We are very grateful to the anonymous Referees and Patrick Francois (the Editor) for their insightful comments that have improved the manuscript signi…cantly. We also would like to thank Elias Dinopoulos, Rachel Gri¢ th, Oleksandr Talavera, Fabrizio Zilibotti, and seminar participants at

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Section: Imitation and Intellectual Property Rightsmentioning

confidence: 99%

“…35 A parameter condition (P1) to be stated below will ensure that f t < 1. 36 We call this e¢ cient imitation because it raises the level of technology in the industry. individual is randomly chosen as an imitator, who has the ability to imitate existing foreign technologies in the industry.…”

Section: Imitation and Intellectual Property Rightsmentioning

confidence: 99%

Stage-dependent intellectual property rights

Chu

Cozzi

Galli

2014

Journal of Development Economics

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“…As surveyed by Griliches (1990), patent application is one of the most popular yet debated indices of innovation output that is often used to infer the knowledge spillover. Hu and Jefferson (2009) reported that increased presence of FIEs seems to have contributed to the recent surge of patent application in China, but interpret such effect mostly as the opportunistic behavior by domestic firms to hold patent to preempt competition, rather than knowledge spillover. Another measure of innovation is the new product development.…”

Section: Where Do Spillovers Manifest?mentioning

confidence: 99%

How do Chinese industries benefit from FDI spillovers?

Ito

Yashiro

et al. 2012

China Economic Review

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Recently, Foreign Invested Enterprises (FIEs) in China have increased their investment in not only production activity but also R&D activity. This paper examines the impact of spillovers from such activities on two types of innovations by Chinese domestic firms: Total Factor Productivity (TFP) and invention patent application, using comprehensive industry and province-level data. We evaluate such spillovers according to FIEs' ownership structure, the origin of foreign funds, and the type of their activity: R&D, and production. We find an interesting asymmetry between spillovers to TFP and patent application：while we do not find significant intra-industry spillovers from FIEs, which is in line with previous studies, we find robust inter-industries spillover on TFP. On the other hand, we find substantial intra-industry spillovers promoting invention patent application but no evidence of inter-industries spillovers. Furthermore, whereas spillovers from FIEs to Chinese firms' TFP stem from their production activities, the source of spillovers to invention patent application is mostly through their R&D activity. Our findings indicate a need for multi-dimensional evaluation on the role of FDI in developing countries.Keywords: China, FDI spillovers, R&D, Innovation JEL classifications: O12;O3;F23;O53 This paper is one of the products of DRC-RIETI joint research. We are grateful to Masahisa Fujita, Masayuki Morikawa and participants of the DRC-RIETI joint workshop at RIETI and DRC for their valuable comments. Remaining errors are those of the authors. The opinions expressed in this paper do not reflect those of RIETI or DRC of the State Council,

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“…9 The State Intellectual Property Office of the People's Republic of China has the larger number of solar PV patent filings among others patent offices. However, there are some quality problems related to a significant number of Chinese patents, with most being due to policies regarding foreign direct investment rather than R&D (Reuters 2011;Hu andJefferson 2009). 10 MITEI (2015) analyzes the possibilities and different technology paths available and in research for solar PV. cardinal in order to promote infrastructure in the country (Ferraz 2015;Pepitone 2016;Vazquez 2015).…”

Section: The Current Brazilian Framework To Promote Renewablesmentioning

confidence: 99%

Internalizing a novel industrial chain through public financing: the importance of compatibility between technology, local content criteria and objectives in the impaired Brazilian solar expansion

Andreão¹,

Vázquez²,

Hallack³

2017

Blucher Engineering Proceedings

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The Brazilian Development Bank (BNDES) has been the main source of funding for wind generation. Its main financing program (Finem) is considered a success in its attempt to promote wind generation in Brazil. Finem is linked to a local content policy that aims to internalize novel industrial chains. It was expected from solar generation to go down a similar successful path, using the same promotion and financing mechanisms as wind power generation. However, this has not been verified. There are several delayed solar power plants and most of them are unlikely to go into operation on schedule, which relates to the maintenance of a national solar PV industry at an underdeveloped state. Therefore, we analyze the incompatibility between technology, the financing methodology (local content requirements) and objectives. For that we: compare solar and wind technical and economic differences; describe the incentive mechanism; and show the results for both sources, relying on data and analysis currently available. For an insertion of solar PV in the matrix and an internalization of this industrial chain in the country, objectives, methodology and technology must be harmonious. Brazil has to decide between a larger deployment of solar PV with imported panels; or a long-term objective with multiple policies towards a reasonable internalization of the chain. A local content criterion aimed at services rather than items might be a third option. Keywords - ResumoO Banco Nacional de Desenvolvimento Econômico e Social (BNDES) tem sido a principal fonte de financiamento para a geração eólica. Seu principal fundo de financiamento (Finem) é considerado um sucesso em sua tentativa de promover a geração eólica no Brasil. O Finem está ligado a uma política de conteúdo local que visa internalizar novas cadeias industriais. Esperava-se um resultado similar da geração solar fotovoltaica (FV), usando os mesmos mecanismos de promoção e financiamento da geração eólica. No entanto, isso não foi verificado. Existem várias usinas solares com a construção atrasada e é improvável que a maioria delas entre em operação no prazo, o que se relaciona com a manutenção de uma indústria nacional de energia solar FV em um estado subdesenvolvido. Assim, analisamos a incompatibilidade entre tecnologia, metodologia de financiamento (requisitos de conteúdo local) e objetivos. Para isso vamos: comparar as diferenças técnicas e econômicas de solar FV e eólica; descrever o mecanismo de incentivo; e mostrar os resultados para ambas as fontes, de acordo com os dados e análises mais atuais. O Brasil tem que decidir entre uma maior implantação de solar com painéis importados; ou um objetivo de longo prazo com políticas de múltiplos âmbitos para uma internalização razoável da cadeia. Um critério de conteúdo local baseado em serviços em vez de itens pode ser uma terceira opção. Internalizing a novel industrial chain through public financing: the importance of compatibility between technology, local content criteria and objectives in the impaired Brazilian sol...

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A great wall of patents: What is behind China's recent patent explosion?

Abstract: Patenting in China has been growing at an annual double-digit rate over

Cited by 415 publications

References 23 publications

Stage-dependent intellectual property rights

Stage-dependent intellectual property rights

How do Chinese industries benefit from FDI spillovers?

Internalizing a novel industrial chain through public financing: the importance of compatibility between technology, local content criteria and objectives in the impaired Brazilian solar expansion

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