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IP Measures for Transmission and Exploitation of Technological Knowledge

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China’s Intellectual Property Regime for Innovation

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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.

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Notes

  1. 1.

    Rogers (1995) defines technological diffusion as the adoption of a technology within a society, organization (such as a firm), or group of individuals. Stewart (1987) is careful to distinguish technological diffusion (the process of adoption of technology in the market) from technology transfer (exchange of knowledge and legal rights to produce a new product).

  2. 2.

    Full text of the measure (in Chinese) available from http://www.gov.cn/zhengce/content/2019-03/18/content_5374723.htm.

  3. 3.

    For more information on other IP and technology issues related to China’s laws on JV’s and foreign investment see USTR (2018).

  4. 4.

    According to Article 7 of the SAIC Provisions, several factors need to be taken into account when determining what constitutes an essential facility: the reasonable substitutability of the IPR, the adverse impact of refusal to license on competition or innovation in the relevant market or on consumers’ or the public’s interests, whether the IP licensing will cause unreasonable damage to the IP holder, among potentially other factors.

  5. 5.

    US government reports look at some of these, and some other, controversial Chinese FTT policies and indigenous innovation policies. See, for example, BEA (1999), CECC (2010), Linton et al. (2010), Hammer et al. (2011).

  6. 6.

    Yet other, arguably less significant policies include: restrictions on IP resulting from government-funded research, overly strict sufficiency of disclosure and inventiveness requirements for biopharmaceutical patents, insufficient patent linkage, subsidies for indigenous patents, and the burdensome requirements in the High and New Technology Enterprise (HNTE) tax scheme. See Prud’homme et al. (2018) for a discussion.

  7. 7.

    Full text of the measure (in Chinese) available from: http://www.npc.gov.cn/npc/xinwen/2019-03/15/content_2083532.htm.

  8. 8.

    The corresponding Chinese text reads as follows: “…行政 机关及其工作人员不得利用行政手段强制转让技术.” (emphasis added).

  9. 9.

    Calculations using data from National Statistical Yearbook 2016 (http://www.stats.gov.cn/tjsj/ndsj/2016/html/2013EN.jpg).

  10. 10.

    See Art. 45, Section 1, LPTSTA.

  11. 11.

    See Art. 45, Section 2, LPTSTA. This parallel system in the LPTSTA stipulates a higher and more ambitious standard of remuneration in favor of inventors and scientists than that required in China’s Patent Law.

  12. 12.

    This being said, the situation in Europe may not be as comparable to China given differences in levels of knowledge accumulation, technological development, and efficiency of the triple helix.

  13. 13.

    Transaction value in technology markets in China rose dramatically from RMB 476.4 billion in 2011 to RMB 983.6 billion in 2015. Calculations using data from National Statistical Yearbook 2016 (http://www.stats.gov.cn/tjsj/ndsj/2016/html/2001EN.jpg).

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Authors and Affiliations

  1. EMLV Business School, Léonard de Vinci Pôle Universitaire, Paris, France

    Dan Prud’homme

  2. Law School of Tongji University, Shanghai, China

    Taolue Zhang

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  1. Dan Prud’homme
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  2. Taolue Zhang
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Correspondence to Dan Prud’homme .

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Prud’homme, D., Zhang, T. (2019). IP Measures for Transmission and Exploitation of Technological Knowledge. In: China’s Intellectual Property Regime for Innovation. Springer, Cham. https://doi.org/10.1007/978-3-030-10404-7_4

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