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2019 | Book

China’s Intellectual Property Regime for Innovation

Risks to Business and National Development

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About this book

This book evaluates the risks that China’s intellectual property (IP) regime poses to innovation. China's IP regime has been heavily criticized as potentially stifling innovation. However, the country’s innovation capabilities have risen significantly and major reforms have recently been made to its IP regime. How risky, really, is China's IP regime for innovation? This book investigates this question at different units of analysis based on a multidisciplinary assessment involving law, management, economics, and political science. Specifically, it critically appraises China's substantive IP laws, measures for boosting patent quantity and quality, measures for transmitting and exploiting technological knowledge, new experimental IP measures, and China's systems for administering and enforcing IP. Practitioners and scholars from various backgrounds can benefit from the up-to-date analysis as well as the practical managerial tools provided, including risk assessment matrices for businesses and recommendations for institutional reform.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
This book evaluates the risks that China’s intellectual property (IP) regime poses to innovation. The regime has been heavily criticized in recent years as potentially stifling innovation. In fact, disputes over China’s allegedly inadequate IP regime and IP “theft” have contributed to one of the biggest trade wars in modern history. However, at the same time, China’s innovation capabilities have risen significantly and major reforms have recently been made to the country’s IP regime. How risky, really, is China’s IP regime for innovation? This book evaluates this important and timely question based on a multidisciplinary analysis involving law, management, economics, and political science.
Dan Prud’homme, Taolue Zhang
Chapter 2. Statutory IP Laws
Abstract
China has established a relatively complete legal infrastructure for IP protection over the past 30 years. During this time, China’s IP laws and regulations have become increasingly conducive to innovation rather than mere imitation. Many of these aspects of China’s IP regime are currently broadly in line with international standards. However, there are some important exceptions to this trend discussed in this chapter.
Dan Prud’homme, Taolue Zhang
Chapter 3. Chinese Patenting Trends and the Role of the State
Abstract
This chapter looks at trends in Chinese patent quantity as well as Chinese patent “quality”, which is one way to measure the extent to which patents reflect innovation. The role of the Chinese state in influencing patent quantity and quality is also explored.
Dan Prud’homme, Taolue Zhang
Chapter 4. IP Measures for Transmission and Exploitation of Technological Knowledge
Abstract
The ability of technological knowledge to be efficiently created and shared among different economic agents in a NIS is a fundamental determinant of the ability of an economy to sustainably generate innovation (Freeman in Technology Policy and Economic Performance: lessons from Japan. Pinter Publishers, London, 1987; Lundvall in National systems of innovation: towards a theory of innovation and interactive learning. Pinter Press, London, 1992; Nelson National innovation systems: a comparative analysis, Oxford University Press, UK, 1993). Mechanisms for transmission and exploitation of technological knowledge are central to this process.
Dan Prud’homme, Taolue Zhang
Chapter 5. New/Experimental IP-Related Measures
Abstract
The growth of Internet-intensive and other emerging industries in China has posed new challenges to governance of IP, to which the Chinese state has proactively responded. The Chinese state has recently attempted to regulate corresponding business models and other commercial activities in a way that ensures healthy competition and safeguards the public interests while also not restricting innovation.
Dan Prud’homme, Taolue Zhang
Chapter 6. Administration of IP Rights
Abstract
A relatively complex state system for administering IP rights has been developed in China since the 1980s. This chapter provides a brief overview of this system and offers a general assessment as to how it has functioned to enable innovation and entrepreneurship in China.
Dan Prud’homme, Taolue Zhang
Chapter 7. IP Enforcement
Abstract
Many improvements have been made to China’s IP enforcement system over the past few decades. However, noteworthy challenges still remain: China could benefit from an even higher quality IP enforcement system that is more time and resource friendly to rights holders, transparent, and creates a stronger deterrent effect against IP infringement/misappropriation. This chapter evaluates the efficiency and effectiveness of China’s IP enforcement system, including how it may be influencing innovation, based on statistical analysis, literature review, and legal analysis.
Dan Prud’homme, Taolue Zhang
Chapter 8. Implications for Businesses
Abstract
As illustrated throughout this book, although China’s current IP regime poses a range of risks, i.e., hazards and costs, to various actors participating in the country’s NIS, firms are often most directly and significantly impacted. In this chapter, we set-forth several basic tools that firms can use to manage these risks. We first discuss a few novel frameworks that integrate risk management tools with IP management concepts. We then discuss general best practices for managing IP in China.
Dan Prud’homme, Taolue Zhang
Chapter 9. Implications for Policymakers
Abstract
In this chapter, we provide recommendations about ways to reform China’s IP regime to make it more conducive to innovation. While many reforms could be suggested, we highlight reforms we believe are most important to addressing the issues discussed in Chaps. 27. These recommendations can serve as the basis for further discussions between academics and policymakers and other actors actively involved in China’s NIS.
Dan Prud’homme, Taolue Zhang
Chapter 10. Conclusions
Abstract
This book provides a timely and up-to-date evaluation of the risks that China’s IP regime poses to innovation. Our central finding is that China’s IP regime for innovation has improved notably over time, and therefore is more conducive to innovation than many believe, but it still poses noteworthy risks. The presence of these risks may, to varying degrees, negatively influence the innovation activities of both foreign and domestic firms, as well as other stakeholders participating in the innovation process. In turn, this poses a larger set of risks to China’s national development. More specifically, we argue that China still needs to address six intertwined IP-related challenges to become a high-income country. We explore each of these intertwined challenges in detail through the lens of several different aspects of China’s IP regime. We argue that China’s IP regime could benefit from additional reforms that we recommend. We believe the country is capable of building a world-class IP regime in the near future that can help it avoid the middle-income trap and become an innovation powerhouse.
Dan Prud’homme, Taolue Zhang
Correction to: China’s Intellectual Property Regime for Innovation
Dan Prud’homme, Taolue Zhang
Backmatter
Metadata
Title
China’s Intellectual Property Regime for Innovation
Authors
Prof. Dan Prud’homme
Prof. Dr. Taolue Zhang
Copyright Year
2019
Electronic ISBN
978-3-030-10404-7
Print ISBN
978-3-030-10403-0
DOI
https://doi.org/10.1007/978-3-030-10404-7