By Johannes Liegsalz
The safety of highbrow estate rights (IPRs) is a contentious factor in constructing and rising economies. whereas international locations like China are usually reluctant to bolster IPRs, industrialized international locations bitch approximately welfare losses of their markets because of overseas counterfeiting and piracy. during this context, Johannes Liegsalz empirically analyzes the felony framework and the commercial relevance of patents within the People’s Republic of China. His effects express that IPRs play an important position in modern China and they have a favorable influence on overseas alternate flows and overseas direct investments.
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Additional info for The Economics of Intellectual Property Rights in China: Patents, Trade, and Foreign Direct Investment
Forward citations. Along with information on backward patent and non-patent literature citations, it is of interest how often a patent is cited by other patents. More frequently cited patents embody inventions of greater importance for the development of a technological area – similar to quotations across scientific publications. Trajtenberg (1990), for example, demonstrated the relation between forward citations and the value of an invention. 32 Global annual patent applications per applicant.
While the grant ratio of all SIPO applications of non-residents varies between 50% and 80%, the rate for domestic applicants increased from around 20% in the early years up to 50%. A separate analysis for SIPO patents that were filed at the EPO or USPTO shows clearly higher grant ratios of between 60% and 90%, which supports the assumption of more patentable inventions being filtered in the two subgroups. , Bosworth and Yang (2000) or Fai (2005)). The comparison of the four foreign countries with the highest application figures brings further interesting facts to light.
The examination times for the three groups show a similar development. 39 The previously described patent characteristics reveal interesting patterns as well. While the patent family size for all SIPO patent applications is quite stable at roughly four applications in all jurisdictions, this number decreases for the subgroups, from about ten in 1990 to less than six equivalent patents in 2002. The decrease for the US and EP groups can be explained by the high share of foreign applicants within those groups and an increasing share of patents that are only filed in a few countries, including China – one of the important emerging markets.