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ROLES OF INTELLECTUAL PROPERTY IN DEVELOPING COUNTRIES-CASE STUDY OF PATENTS ANALYSIS IN CHINA
Abstract
Patent area is one among the intellectual property right areas, China issued different and numerous patents during the eighteen years ago. China is a country which issued domestically and no locally the most number of patents but patents distribution in China is unequal in provinces, autonomous regions and municipalities' cities of China. This study investigates the roles of issuing many numbers of patents in economic development of China. Gravity model and endogenous growth model are applied in analyzing data. With gravity model, we use the balanced panel data with fixed effects estimation in analyzing the roles of foreign patents in economic development of China. Those two panel data techniques are selected through Hausman test. With time series data set and endogenous growth model, through R-squared test, pooled OLS regression model or linear regression model is the best estimation in investigating the positive impacts of patents in provinces, cities and regions economic development; in studying the roles of foreign patent on economic the development of China (national level). This study uses STATA as its analysis tool. The patent protection is considered as a very important variable in economic development of China's autonomous regions, municipalities and provinces since granted patent numbers define autonomous regions, municipalities and Provinces' GDP with the perfect significant statistical possibility value of zero% and with increase of 7%. In China's autonomous regions, municipalities and Provinces, the number of patent protections is the main intellectual property right protection and it is very important due to its positive influence on the expansion of China's economy in autonomous regions, municipalities and Provinces.
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Nowadays China is considered to be the fastest growing country among the developing countries economy of the world. To get the contribution of free trade area in encouraging China’s exports that affects positively the Chinese economy, this paper investigated and analysed the volume of China’s trade in the last fifteen years (2000-2014). The aims of this study are to analyse and examine the role exports flows of China, and to examine the relationship between exports flows and free trade area agreement based on ACFTA membership of China since 2002. The exports flows from China to 200 countries are examined in order to see how more China exported to other member countries in helping this economic cooperation to achieve its objectives of promoting trade. Through the use of the gravity model and panel data techniques, it was found out that the relationship between China Exports and Gross Domestic Products of trading partners is positive with the increase in percentage of 85 percent while the Gross Domestic of China increases with 37 percent. Country’s export sector is a very important factor in its economic development especially in developing countries.
There is a popular belief that Chinese imports have devastated US and European manufacturing and contributed to rising inequality. Somewhat paradoxically, the consensus amongst empirical economists is that trade has not been a major cause of rising wage inequality (although this is largely based on datasets predating China's rise). We argue that both views have underestimated the positive impact of Chinese trade on technical change. We examine the impact of the growth of Chinese imports innovation and IT diffusion using a panel of over 23,000 European establishments through 2007. We correct for endogeneity using natural experiments such as China's entry into the World Trade Organization. We find that Chinese import competition led to both within firm technology upgrading, and between firm reallocation of employment towards more technologically intensive plants. These effects are growing over time as Chinese trade volumes rise, accounting for about 25% of technology upgrading in the most recent years. These results suggest that trade with low wage countries appear to have potentially large beneficial impacts on technical change as recent theories suggest.
Using newly collected patent assignment data for late nineteenth- and early twentieth-century Germany and a standard econometric approach from the international trade literature—the gravity model—we demonstrate the existence of border effects on a historical technology market. We show that the geographic distance between assignor and assignee negatively affected the probability of patent assignments, as well as the fact that a state or international border separated the two contracting parties. Surprisingly, we show that the effect of a state border within Germany was nearly as large as the effect of an international border.
This paper studies intellectual property rights (IPRs) and innovation in developing countries. A model is developed to illustrate the trade-off between imitating foreign technologies and encouraging domestic innovation in a developing country's choice of IPRs. It is shown that innovations in a developing country increase in its IPRs, and a country's IPRs can depend on its level of development non-monotonically, first decreasing and then increasing. Empirical analysis, with a panel of data for 64 developing countries, confirms both the positive impact of IPRs on innovations in developing countries and the presence of a U-shaped relationship between IPRs and economic development.
This paper examines the growth of technological capability in the telecommunication industry in China. We apply a modified version of Lee and Lim's [Lee, K., Lim, C., 2001. The technological regimes, catch-up and leapfrogging: findings from the Korean industries. Research Policy, vol. 30.] model of technological learning and catching-up. Using the three cases of the Shanghai Bell, the CIT-led R&D consortium, and indigenous companies such as Huawei, we analyze how the catching-up in the telecommunication industry occurred. We find that the important factors in the catch-up are the strategy of “trading market for technology,” the knowledge diffusion from Shanghai Bell both to the R&D consortium and to Huawei, and industrial promotion by the government. As a condition for successful catch-up, the paper points out that the technological regime of the telephone switches is featured by a more predictable technological trajectory and a lower cumulativeness. These conditions and strategies helped the Chinese firms to achieve a stage-skipping catch-up, namely, by skipping the stage of analogue electronic switches to jump to digital electronic switches.
This article examines the construction of a system of dynamic relationship between invention patent; utility model patent; external design patent and technological advantages by using vector autoregression (VAR) model. Through the application of Granger causality analysis, it has been found that there exists a unilateral Granger causality between invention patent; utility model patent and external design patent. This indicates that invention patent has the effect of promoting the growth of other types of patents and that it is able to foster technological advances in China. Through analysis using impulse response analysis and variance decomposition method, it is found that utility model patent and external design patent are able to promote technological advancement, although, the promotional effort of invention patent is not obvious.
We build a multi-sectoral North–South trade model to analyze international intellectual property rights (IPR) protection. By comparing the Nash equilibrium IPR protection standard of the South (the developing countries) with that of the North (the developed countries), we find that the former is naturally weaker than the latter. Moreover, we show that both regions can gain from an agreement that requires the South to harmonize its IPR standards with those of the North, and the North to liberalize its traditional goods market. This demonstrates the merits of multi-sectoral negotiations in the GATT/WTO.
We develop a model to analyze one mechanism under which stronger intellectual property rights (IPR) protection may improve the ability of firms in developing countries to break into export markets. A Northern firm with a superior process technology chooses either exports or technology transfer through licensing as its mode of supplying the Southern market, based on local IPR policy. Given this decision, the North and South firms engage in Cournot competition in both markets. We find that stronger IPR would enhance technology transfer through licensing and reduce the South firm's marginal production cost, thereby increasing its exports. Welfare in the South would rise (fall) if that country has high (low) absorptive capacity. Excessively strong IPR diminish competition and welfare, however. Adding foreign direct investment as an additional channel of technology transfer sustains these basic messages.
This paper presents an index of patent rights for 110 countries for the period 1960–1990. The index is used to examine what factors or characteristics of economies determine how strongly patent rights will be protected. The evidence does indicate that more developed economies tend to provide stronger protection. But the underlying factors which influence patent protection levels are the country's level of research and development (R&D) activity, market environment, and international integration, which are correlated with its level of development. The results qualify, however, that R&D activity influences patent protection levels after a nation's research sector reaches a critical size. An implication of this is that to raise patent protection levels in weakly protecting countries, it is important to foster a significant research base in those countries and thereby create incentives for protecting patent rights.