Outlook

Abstract

The protection of proprietary IP in China remains a challenging task. It will require several more years and a revolutionary rethink before China develops into a strong appropriability regime. The increasing number of patent applications in China by domes-tic firms underlines the importance of IP generation by local firms to protect their innovation portfolios. The Chinese government continually invests in innovation and has strategically placed it at the center of its 5-year development plan. However, as long as the Chinese IPR regulations and enforcement remain weak, IP protection will remain one of the highest priorities for industrial firms in China. If China continues its innovation efforts, whilst also reinforcing its intellectual property system, it will become an innovation powerhouse within the next two decades.