Zheng Liang* and Lan Xue
China Institute for Science and Technology Policy (CISTP),
School of Public Policy and Management,
Tsinghua University, Beijing 100084, P.R. China
E-mail: liangzheng@tsinghua.edu.cn
E-mail: xuelan@tsinghua.edu.cn
*Corresponding author
Abstract: This paper first reviews the evolution of China's IPR system with an
emphasis on the patent system, which is mainly shaped by three forces
including the transition to a market economy, the opening of the domestic
market and the national initiatives for cultivating indigenous innovative
capabilities. Then by using some unique data both at the national level and firm
level, it analyses the patenting behaviours and strategies of foreign
multinationals in China in comparison with local firms, which has yielded
some interesting findings. First of all, the patent deployment of multinationals
in China is mainly market-oriented and strategic. Although the negative
perception of China's IPR system has led multinationals to act defensively,
they have been able to adapt to the Chinese system and maximise their
economic benefits, in addition to gaining competitive advantages. Also, while
multinationals' patenting in China has created some obstacles for local firms to
catch-up, it has also forced some of them to find new ways to innovate and
develop their own capabilities.
Keywords: China's IPR system; patent system; multinationals; patenting
behaviours; patent strategies.
Keeping critical intellectual property completely out of a joint venture.
Charging for intellectual property up front.
map out critical stakeholders in and around the joint venture
ssign relationship responsibilities at multiple levels of the organization
developing interaction protocols
The CEO of a leading global insurer, for example, often teaches management practices at the Central Party School.
failures might have been avoided if the CEOs of the parent companies and the joint ventures’ future management teams had spent time collectively developing business plans and preparing for changes in market dynamics.
agree on key business priorities, such as volume versus value, channels, products, and target customer segments.
provide for direct reporting lines to their CEOs
assigned responsibility for China to a member of their management boards
When a European transportation company made China its second home market, for example, it elevated its China president to the global management board and sent its global CEO to China at least six times a year to meet with the joint-venture partners.
Resource constraints: energy and raw materials.
Mismatch in investment and imbalance in consumption.
Income disparity.
Weakness in capacity for domestic innovation.
Production structure is not rational: too much heavy industry, not enough service.
Agriculture foundation is thin and weak.
Urban/rural development is not coordinated.
Employment system is imbalanced.
Social contradictions are progressively more apparent.
Obstacles to scientific development continue to exist and are difficult to remove.
Most planners are pushing for tripling of the average wage for factory workers during this 5 year plan
Article 7 of the AML prohibits business operators operating in industries pertinent to the national economy and national security from using their market power to harm the interests of consumers. Article 7 also stipulates that these business operators must conduct their businesses “honestly and trustworthily and exercise self discipline”
Article 17(5) of the AML prohibits business operators from abusing their dominance by bundling the sale of commodities without a valid reason or imposing unreasonable terms within a transaction.
Having a middle manager deal with a China project on a full-time basis and having his destiny interwoven with the China project (i.e. no China project = no job) may mean the deal will proceed regardless of whether it makes sense or not.
Having an export manager deal with a China project on a part-time basis will mean that the project may have a lower priority than it deserves
“A man who cannot say yes is useless, a man who cannot say no cannot be trusted”
Six Secret Formulas from Private
Equity to Boost Company Performance
1.
Break the existing “satisfactory underperformance”
2.
Develop a blueprint detailing how to turn initiatives into
results
3.
Accelerate performance by implementing a rigorous program
4.
Reward generously for managers to think and act like owners
5.
Manage working capital aggressively and discipline capital
expenditures
6.
Foster a results-oriented mind-set
equipment manufacturing; shipbuilding; automobiles; iron and steel; non-ferrous metals; building materials; petroleum and chemicals; light industry; and textiles
seven strategic industries:
energy-efficiency and environmental protection; new-generation information technology; biology; high-end equipment manufacturing; renewable energy; new materials; and new-energy cars. The Plan aims to improve Chinese companies' competitiveness in the world market.
Companies active in the industries identified for special treatment by Chinese central planning should be aware that the Plan may result in increased subsidization by the Chinese government in these areas, affecting trade flows and product competitiveness.
People are serious talking about 15-20% rises for the next five years,
Andy Xie, ex-Morgan Stanley economist, wrote an excellent essay some months ago predicting a 400% increase in unskilled / semi-skilled Chinese worker wages over the next 10 years.
The Chinese Govt, Labour Bureaus and Unions will no longer have the same passive role in facilitating low wages or suppressing workers demands