Prud'homme, Dan (2012): Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China. Published in: European Union Chamber of Commerce in China Publications , Vol. 1, No. August 2012 (August 2012): pp. 1-229.
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Abstract
This study’s statistical analysis shows that patent quality and innovation in China deserve improvement, and an in-depth legal, management science, and economic analysis in the study shows that various patent-related policies and practices actually hamper patent quality and innovation in China. Over 50 recommendations for reform are provided. The study is divided into four chapters, summaries of which are as follows:
Chapter 1: Although China became the world leader in quantity of domestically filed patent applications in 2011, the quality of these patents needs improvement. Also, while certain innovation in China is rising, the country’s actual innovation appears overhyped by some sources.
Chapter 2: There appears to be an overly heavy focus on government-set quantitative patent targets in China, which can hamper patent quality and innovation. This overemphasis involves over 10 national-level and over 150 municipal/provincial quantitative patent targets, mostly to be met by 2015, which are also linked to performance evaluations for SoEs, Party officials and government ministries, universities and research institutes, and other entities.
Chapter 3: China has a wide-range of other policies, many of which are at least partially meant to encourage patents, that can actually discourage quality patents, and highest-quality patents in particular, and innovation. Examples of these policies include a variety of measures with requirements for “indigenous intellectual property rights” that are linked to financial incentives (many of which are unrelated to government procurement); a range of other government-provided financial incentives for patent development (e.g. certain patent filing subsidies); inappropriate inventor remuneration rules; discriminatory standardisation approaches; and a wide range of others.
Chapter 4: There are a host of concerns surrounding rules and procedures for patent application review and those for enforcement of patent disputes that can hamper building of quality patents and innovation in China. These include concerns about abuse of patent rights, difficulties invalidating utility models, and a wide range of other issues.
Item Type: | MPRA Paper |
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Original Title: | Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China |
English Title: | Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China |
Language: | English |
Keywords: | China's innovation; indigenous innovation policies; innovation incentives; patent quality; China's patent targets; China's patent policy; Dan Prud'homme; patent enforcement |
Subjects: | O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D K - Law and Economics > K1 - Basic Areas of Law > K11 - Property Law O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights K - Law and Economics > K2 - Regulation and Business Law L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation K - Law and Economics > K3 - Other Substantive Areas of Law O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O34 - Intellectual Property and Intellectual Capital O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O39 - Other D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior ; Transaction Costs ; Property Rights D - Microeconomics > D0 - General > D03 - Behavioral Microeconomics: Underlying Principles O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives |
Item ID: | 47617 |
Depositing User: | Dan Prud'homme |
Date Deposited: | 16 Jun 2013 17:44 |
Last Modified: | 30 Sep 2019 06:05 |
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Retrieved from http://ip.thomsonreuters.com/content/patented-china-ii CONSULTATIONS: 2011, October 28- Meeting with SIPO Commissioner Tian Lipu, other senior SIPO officials, and European Chamber representatives 2012, January 19- Consultations with a member of the European Chamber 2012, January 19- Consultations with members of the European Chamber 2012, February 15- Consultations with several professional services’ consultants in Shanghai 2012, February 20- Consultations with an expert at the EU IPR SME Helpdesk 2012, March 6- Consultations in Shanghai with several R&D managers of large multinational companies involved in the European Chamber 2012, March 13- Consultations with several European Chamber members in Shanghai 2012, March 15- Consultations with Dr. Oliver Lutze, Co-Chair of the European Chamber’s IPR Working Group & IPR Working Group Chair in Shanghai, in Shanghai 2012, March 16- Consultations with Dr. Oliver Lutze in Shanghai 2012, March 20- Consultations with Vice Chair of the European Chamber’s IPR Working Group in Shanghai and Associate at Taylor Wessing, in Shanghai 2012, March 23- Consultations on SMEs’ internationalisation in China with a DG Enterprise representative 2012, March 23- Consultations with Paul Ranjard, Chair of the European Chamber’s Working Group in Beijing; Doug Clark, Vice Chair of the European Chamber’s Working Group in Shanghai; and Dr. Oliver Lutze 2012, March 31- Consultations with Dr. Oliver Lutze in Shanghai 2012, April 17- Consultations with several members of the European Chamber in Shanghai 2012, April 12, 18- Consultations with several Chinese companies in the nutrition and machinery industries 2012, April 18- Consultations with Dr. Oliver Lutze in Shanghai 2012, April 24- Consultations with Lin Xu in Shanghai 2012, April 25- Consultations with certain Chinese R&D managers, Shanghai 2012, May 7- Consultations with Lin Xu in Shanghai 2012, May 8- Consultations with Qu Xiaoyang, Vice Chair of the European Chamber’s IPR Working Group in Beijing 2012, May 8- Consultations with Dr. Oliver Lutze in Shanghai 2012, May 9- Consultations with several members of the European Chamber 2012, May 9- Consultations with Dr. Oliver Lutze in Shanghai 2012, May 14- Consultations with a representative in the telecom industry in the Chamber’s IPR Working Group 2012, May 15- Consultations with members of the European Chamber in Shanghai 2012, May 17- Consultations with several members of the European Chamber’s R&D Forum 2012, May 17- Consultations with members of the IPR Working Group 2012, May 17- Consultations with Lin Xu 2012, May 23- Consultations with Dr. Oliver Lutze in Shanghai 2012, May 24- Consultations with members of the IPR Working Group 2012, June 11- Consultations with Dr. Oliver Lutze in Shanghai 2012, June 12- Consultations with Elliot Papageorgiou, Executive & Partner at Rouse Legal (China), in Shanghai 2012, June 13- Consultations with Christine Yiu, Senior Associate, Bird & Bird, in Shanghai 2012, June 15- Consultations with a patent attorney based in the US 2012, June 27- Consultations with members of different working groups of the European Chamber 2012, July 10- Consultations with Elliot Papageorgiou in Shanghai 2012, July 12- Consultations with Elliot Papageorgiou in Shanghai 2012, July 13- Consultations with Christine Yiu in Shanghai 2012, July 14- Consultations in Shanghai with a member of the European Chamber 2012, July 14- Consultations with Elliot Papageorgiou in Shanghai 2012, August 2- Consultations with a member of the European Chamber in Shanghai 2012, August 2, 3, and 8- Consultations with three individuals, one based in Beijing and the other two based in Shanghai 2012, August 9- Consultations (via phone) with SIPO LAWS, POLICIES, OTHER MEASURES, AND COURT OPINIONS (*NOTE: This is not an exhaustive list of all such measures referenced in the study, see Table 14 for other measures) Anhui Intellectual Property Office. (2011, November 17). Anhui’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.ahipo.gov.cn/dt2111111175.asp?DocID=2111116610 Beijing Intellectual Property Bureau, & Beijing Development and Reform Commission. (2011, August 24). Notice on launching Beijing’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.bjipo.gov.cn/zcfg/zlgh/201202/t20120207_25714.html Beijing MoF, & Beijing Municipal Bureau of Quality and Technical Supervision. (2006, November 13). Beijing administrative measures of the special subsidiary funds for the formulation (revision) of technology standards. Retrieved from http://www.bjtsb.gov.cn/infoview.asp?ViewID=2711 Beijing People’s Government. (2009, May 6). Advices on implementation of Beijing intellectual property strategy compendium. Retrieved from http://www.gov.cn/gzdt/2009-05/06/content_1305629.htm Canton Fair. (2002). Measures for complainants and settlements of infringements of intellectual property rights. Retrieved from http://www.cantonfair.org.cn/cn/service/ipp/detail.aspx?oid=11062 Chengdu High-Tech Industrial Development Zone [CDHT]. Investing in China – Government policies. Retrieved from http://www.chengduhitech.co.uk/Guide/Government_Policies.asp Chint vs. Schneider on patent infringement Chongqing Legislative Affairs Office. (2011, November 30). A State Council notice directing all government entities to remove any mention of linkages between indigenous innovation policy and government procurement within regulatory documents. Retrieved from http://www.cqfzb.gov.cn/Pro_General/ContentShow.aspx?ProID=49&myid=8655 Chongqing Municipal People’s Government. (2011, October 27). Chongqing’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.cqipo.gov.cn/templet/default/ShowArticle.jsp?id=5421 Criminal Law of the P.R.C Department of Foreign Trade and Economic Cooperation of Guangdong Province, & Department of Finance of Guangdong Province. (2011, June 14). Notice on good performance of the construction fund for Guangdong export bases of agricultural, light industry and textile products for the year of 2011. Retrieved from http://www.gddoftec.gov.cn/admin/UploadFile/2011621161019379.pdf Department of Science and Technology in Shanxi. (2009, August 13). Launch drafting Shanxi intellectual property strategy compendium. Retrieved from http://www.shanxigov.cn/n16/n1611/n3539/n7299/n20244/8365727.html Development and Reform Commission of Guangxi Zhuangzu Autonomous Region, & Science and Technology Office of Guangxi Zhuangzu Autonomous Region. (2011, August 8). Guangxi Zhuangzu autonomous region’s 12th Five Year Plan on science and technology development. Retrieved from http://gov.gxsti.net/zwgk/zxtz/613832.shtml European Community, & Government of the PRC. (2000, January 11). Agreement for scientific and technological cooperation between the European Community and the government of the People’s Republic of China. Official Journal of the European Communities. Retrieved from http://ec.europa.eu/world/agreements/downloadFile.do?fullText=yes&treatyTransId=784 Fourth Plenary Session of the Fifteenth Central Committee of Communist Party of China. (1999, September 22). Decision of the Central Committee of the Communist Party of China on major issues concerning the reform and development of state-owned enterprises. Retrieved from http://cpc.people.com.cn/GB/64162/71380/71382/71386/4837883.html Fujian Province People’s Government. (2010, January 30). Advices on implementation of national intellectual property strategy compendium. Retrieved from http://baike.baidu.com/view/3357924.htm Gansu Intellectual Property Office. (2011, March 22). Gansu’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.gsipo.gov.cn/zcfg/detail.php?n_no=38287&dir=/%D5%FE%B2%DF%B7%A8%B9%E6/%C6%E4%CB%FB Gansu Prisons Bureau, & Gansu Intellectual Property Department. (2009, October 1). Measures for the rewards and recognition of the invention, creation and technical innovation of prisoners within the period of execution (trial). Retrieved from http://www.sipo.gov.cn/mtjj/2009/200908/t20090803_471159.html Gansu Province People’s Government. (2010, June 18). Notice on launching Gansu intellectual property strategy compendium. Retrieved from http://www.gsipo.gov.cn/zscqzl/detail.php?n_no=36798 Government of Xinjiang Uygur Autonomous Region. (2010, April 19). Notice on launching intellectual property strategy compendium of Xinjiang Uygur autonomous region. Retrieved from http://www.akss.gov.cn/childsite/kjj/index.php?option=com_content&view=article&id=360:2010-05-10-09-03-45&catid=46:2009-04-21-01-31-28&Itemid=77 Guangdong Intellectual Property Office. (2012, March 27). Intellectual property strategy compendium of Guangdong province (2007-2020). Retrieved from http://www.sipo.gov.cn/twzb/gdyjbkbys/bjzl/201203/t20120327_659900.html Guangdong Province People’s Government. (2011, August 10). Guangdong’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://zwgk.gd.gov.cn/006939748/201108/t20110823_269558.html Guangdong Provincial People’s Congress. (2010, February 29). News conference on promulgation and implementation of provincial independent innovation regulations. Retrieved from http://www.npc.gov.cn/npc/xinwen/dfrd/guangdong/2012-02/29/content_1693676.htm Guangxi Zhuangzu Autonomous Region People’s Government. (2009, December 23). Notice of advices on launching Guangxi Zhuangzu autonomous region intellectual property strategy compendium. Retrieved from http://www.gxipo.net/zcfg/zl/554850.shtml Guizhou Intellectual Property Office. (2009, February 14). Intellectual property strategy compendium of Guizhou province (2006-2015). Retrieved from http://www.jsip.gov.cn/news/ztbd/ztbdcs/ztbdpd9/200902/20090214_51568.html Guizhou Intellectual Property Office. (2011, October 13). Guizhou’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.chinagzpp.cn/Article/ShowArticle.asp?ArticleID=1110 Guo Ke Fa Huo, (2008, No 172). MOST, MoF, & SAT. (2008, April 14). Key high-tech fields with state support. Retrieved from http://www.wjkc.gov.cn/E_ReadNews.asp?NewsID=485 Hainan Intellectual Property Office. (2010, July 6). Intellectual property strategy compendium of Hainan province. Retrieved from http://www.hipo.gov.cn/list.asp?id=2883 Hainan Intellectual Property Office. (2011, December 27). Hainan’s 12th Five Year Plan on patent development. Retrieved from http://www.hipo.gov.cn/list.asp?id=3165 Hebei Intellectual Property Office. (2011, June 10). Hebei’s 12th Five Year Plan on patent development. Retrieved from http://218.12.44.17/content.jsp?code=40170382-3/2011-00104&name Hebei Province People’s Government. (2009, June 22). Advices on implementation of National intellectual property strategy compendium. Retrieved from http://2010.hebstd.gov.cn/?thread-64-1.html Heilongjiang Province People’s Government. (2011, May 22). Notice on launching Heilongjiang intellectual property strategy compendium (2011-2020). Retrieved from http://baike.baidu.com/view/7153606.htm Henan Intellectual Property Office. (2008, November 23). Intellectual property strategy compendium of Henan province. Retrieved from http://www.hnpatent.gov.cn/patentwebsite/show.do?method=show&id=3577 Henan Intellectual Property Office. (2010, December 20). Henan’s 12th Five Year Plan on intellectual property development. Retrieved from http://hnszscqzlw.cn/ArticleShow.asp?id=89 Hubei Intellectual Property Bureau. (2011, July 29). Hubei’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.hbipo.gov.cn/upfile/20100729011527652.doc Hubei Province People’s Government. (2010, August 11). Intellectual Property strategy compendium of Hubei province. Retrieved from http://www.xinhuanet.com/chinanews/2010-08/25/content_20711850.htm Hunan Intellectual Property Office, & Development and Reform Commission of Hunan Province. (2012, May 7). Hunan’s 12th Five Year Plan on patent development. Retrieved from http://www.sipo.gov.cn/dtxx/zlgzdt/2012/201205/t20120507_687187.html Hunan Province People’s Government. (2010, March 27). Intellectual Property strategy compendium of Hunan province. Retrieved from http://news.163.com/09/0327/11/55DK0BOK000120GU.html Intellectual Property Office of Jiangsu Province. (2011, November 2). Jiangsu’s 12th Five Year Plan on patent development. Retrieved from http://www.jsip.gov.cn/laws/bmgfxwj/201112/20111216_70465.html Intellectual Property Office of Jiangxi Province. (2011, April 6). Call for comments on Jiangxi province intellectual property strategy compendium. Retrieved from http://zl.ncinfo.gov.cn/readnews.asp?id=2292 Intellectual Property Office of Liaoning. (2011, November 15). Liaoning’s 12th Five Year Plan on patent development. Retrieved from http://www.lnipo.gov.cn/zscqjweb/zsweb/informationShow.jsp?sectorId=yewgh&infoId=bb45458632fb1d2c0133a58bdb5901b8 Intellectual Property Office of Yunnan Province. (2011, March 24). Yunnan’s 12th Five Year Plan on intellectual property (patent) development. Retrieved from http://www.ynipo.gov.cn/newsview.aspx?id=3074 Intellectual Property’s Office of Liaoning. (2011, June 8). Intellectual Property strategy compendium of Liaoning province. 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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/47617 |
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