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.
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.