Abstract
The impact of IP policies (IPPs) in China has attracted much attention, especially in the context of an upsurge in patent applications and grants. This chapter introduces and analyzes the IP Demonstration City (IPDC) Program in China. Following interviews with government officers from local IP offices in various IPDCs, we have identified the effects of the IPDC Program, which include an increase in IP creation, the growth of IP-related industries, the improvement of both companies’ IP awareness and the governments’ IP administrative system, and potentially an increase in the inflow of foreign direct investment. However, at the same time we have found that the effect of the program within many provinces appears to be relatively limited, although it may be stronger in less-developed provinces. Furthermore, the marginal economic return of the current IPDC Program decreases as more IPDCs are introduced, although in the long term a greater number of IPDCs may eventually generate more general nationwide economic returns. In order to understand how different localities implement and benefit from central-level IP-conditioned government programs in China, we have conducted a brief case study of the cities of Changji and Quanzhou and analyzed the policies implemented by local governments to achieve and maintain IPDC status.
Zhang Yafeng (corresponding author), PhD candidate and researcher, Institute of Policy and Management, Chinese Academy of Sciences
Liu Haibo, Professor, Institute of Policy and Management, Chinese Academy of Sciences
Jin Zongzhen, Assistant Professor, China National Institute of Standardization
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Notes
- 1.
On a separate note, some recent studies have examined the strength of IP cultivation and protection in different regions of China. For example, one study calculated an index of the levels of IP in different areas of China since 2009 according to the output of IP, the level of IP market movement, comprehensive performance of IP (macroeconomic value, social progress performance, and enterprise development performance) and possibilities for IP creation (Wang 2014). Furthermore, in recent years, SIPO has conducted annual studies on ‘patent strength’ and IP development (SIPO 2012a, b, 2013).
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- 9.
This means that those cities with high performances do not have to wait until the third year of the term of ‘cultivation in demonstration’ to apply for the IPDC title.
- 10.
See Economic Daily, available at: http://paper.ce.cn/jjrb/html/2015-03/23/content_235022.htm.
- 11.
The cigarette lighter industry used to be a main pillar industry of Wenzhou in the 1980s and 1990s, and the output represented 95 % of the Chinese market at its peak. Export volume reached 80 % of the total sales in China, and the export volume of lighters with a metal shell made up to 70 % of the world market. In 1994, the U.S. passed the Child Resistance Law (‘CR’), which required lighters sold under USD 2 to be installed with a child resistance device. Although the technology is not complex, the patent is owned by foreign companies. Therefore, companies have to pay high licensing fees if they want to export to those countries where the CR has been passed. However, with the payment of such fees, the lighter manufacturers in China lost their cost advantage and were squeezed out of the international market. The main lesson of this case is that many companies in China, to their detriment do not own patents, or even do not know what IP is, let alone how to use IP.
- 12.
Xinjiang Intellectual Property Office. Available at: http://www.xjipo.gov.cn/Article/ShowArticle.aspx?ArticleID=14385.
- 13.
Source: Fujian Intellectual Property Office. Available at: http://www.fjipo.gov.cn/html/12/25/6628_20151231958.html.
- 14.
Source: Fujian Intellectual Property Office. Available at: http://www.fjipo.gov.cn/html/12/25/6628_20151231958.html.
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Acknowledgements
The authors wish to thank Dan Prud’homme from IP Key for his constructive suggestions for revising this paper. We also thank Song Hefa and Li Zhenxing from the Institute of Policy and Management and Liu Jie from SIPO for their help. We also want to express our thanks to the officers from the IP offices of Guangzhou, Shenzhen, Chengdu, Changsha, Zhengzhou, Wenzhou, and Harbin.
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Appendices
Appendices
1.1 Appendix A: Evaluation Index for IP Demonstration Cities
Objective indicators
1st class indicator | No. | 2nd class indicator | Score (100) |
|---|---|---|---|
Creation (15) | 1 | Number of valid invention patents per 10,000 people | 4 |
2 | Number of granted invention patents per 1 billion RMB of regional GDP | 3 | |
3 | Rate of invention patents granted | 4 | |
4 | Rate of utility patents deemed to be waived | 2 | |
5 | Rate of designs deemed to be waived | 2 | |
Utilization (20) | 6 | Number of registered patent license contracts per 100 industrial companies above the designated size | 4 |
7 | Rate of invention patents whose life ≤3 years | 5 | |
8 | Rate of utility patents whose life ≤3 years | 4 | |
9 | Rate of designs whose life ≤3 years | 3 | |
10 | Number of companies who reach the national IP management standard per 100 industrial companies above the designated size | 4 | |
Protection (20) | 11 | Number of cases of patent infringement disputes per 100 industrial companies above the designated size | 10 |
12 | Number of settled patent forgery cases per 100 industrial companies above the designated size | 5 | |
13 | Number of professional law enforcement officers per 100 industrial companies above the designated size | 5 | |
Management (30) | 14 | Special fund for IP per 100 industrial companies above the designated size per 100 Chinese invention patent applications | 4 |
15 | Rate of special expenditure for IP | 6 | |
16 | IP management ability | 10 | |
17 | Number of full-time administrative staff per 100 industrial companies above the designated size | 10 | |
Service (15) | 18 | Rate of invention patent applications via agencies | 3 |
19 | Rate of utility patent applications via agencies | 2 | |
20 | Rate of design applications via agencies | 2 | |
21 | Number of local patent agencies per 100 Chinese invention patent applications | 4 | |
22 | Number of services for IP | 4 |
Institution establishment indicators
1st class indicator | 2nd class indicator | No. | 3rd class indicator | Score (100) |
|---|---|---|---|---|
Establishment of an IP administrative system (35) | Government’s emphasis (7) | 1 | Government’s regular research and plan concerning IP work | 2 |
2 | City leaders’ collective learning on the topic of IP | 2 | ||
3 | IP work is included in the government’s annual evaluation index system | 1 | ||
4 | IP coordination mechanism | 2 | ||
Regulation construction (5) | 5 | IP regulation construction | 5 | |
Working system (13) | 6 | Public administration and law enforcement ability | 8 | |
7 | Condition of directly controlled organs | 2 | ||
8 | Condition of IP management institute at county level | 3 | ||
Expenditure Investment (10) | 9 | Rate of IP expenditure on general budget expenditure | 5 | |
10 | Amount of government IP expenditure | 2 | ||
11 | Structure of government IP expenditure | 3 | ||
Establishment of IP culture and talent (12) | Publicity work (6) | 12 | Job condition for publicity and government information | 0.5 |
13 | Large scale promotional activities | 1.5 | ||
14 | Number of news reports | 1.5 | ||
15 | Condition of website construction | 1.5 | ||
16 | Annual expenditure on publicity | 1 | ||
Talent work (6) | 17 | Condition of IP education and training | 2 | |
18 | Cultivation, introduction, policy and activity for IP talents | 2 | ||
19 | Number of IP talents | 1 | ||
20 | Annual expenditure on talent work | 1 | ||
Establishment of IP awareness and ability in companies (20) | Policy document (3) | 21 | Condition of policies for supporting companies | 3 |
Work on pilot and demonstration, or superior firms (7) | 22 | Number of national firms and superior companies | 1 | |
23 | Number of provincial pilot/demonstration companies and superior companies | 1 | ||
24 | Number of local pilot/demonstration companies and superior companies | 1 | ||
25 | Measures or activities of pilot/demonstration companies and superior companies | 2 | ||
26 | Annual expenditure of pilot/demonstration companies and superior companies | 2 | ||
Standard implementation work (6) | 27 | Number of companies which reaches the national standard | 1 | |
28 | Number of companies which participate in implementing the national standard | 1 | ||
29 | Measures or activities for implementing the national standard | 2 | ||
30 | Annual expenditure for implementing the national standard | 2 | ||
Trusteeship work (4) | 31 | Number of companies participating in trusteeship | 1 | |
32 | Measures or activities about trusteeship | 2 | ||
33 | Annual expenditure on trusteeship work | 1 | ||
Law enforcement work and assertion of IP rights (17) | Administrative enforcement (10) | 34 | Work condition of patent administrative enforcement | 8 |
35 | Annual expenditure on patent administrative enforcement | 2 | ||
Right assertion and reported complaints (7) | 36 | Condition of capacity for assisting with rights assertion | 2 | |
37 | Condition of work for assistance with rights assertion | 2 | ||
38 | Condition of reported complaints | 1 | ||
39 | Annual expenditure for right assertion assistance and reported complaints | 2 | ||
Work on special themes (11) | Theme 1: improve the patent quality (11) | 40 | Issued policies and evaluation index | 3 |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Theme 2: patent information analysis (11) | 40 | Condition of issued policies | 3 | |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Work on special themes (11) | Theme 3: design industry (11) | 40 | Condition of issued policies | 3 |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Theme 4: IP service industry (11) | 40 | Condition of issued policies | 3 | |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Theme 5: patent navigation industry (11) | 40 | Condition of issued policies | 3 | |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Theme 6: IP financing service (11) | 40 | Condition of issued policies | 3 | |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Work on special themes (11) | Theme 7: Industrialization of patented technology (11) | 40 | Condition of issued policies | 3 |
41 | Measures or activities for promoting work | 5 | ||
42 | Annual expenditure | 3 | ||
Other work (5) | All except the above | 43 | Condition of issued policies | |
44 | Measures or activities for promoting work | |||
45 | Annual expenditure |
Special work indicators
1st class indicator | 2nd class indicator | No. | 3rd class indicator | Score (10) |
|---|---|---|---|---|
Special work (10) | Special measures and excellent achievements | 1 | Special measures | 5 |
2 | Excellent achievements | 5 |
1.2 Appendix B: List of IPDCs
City level | No. | 1st Batch | 2nd Batch | 3rd Batch | 4th Batch |
|---|---|---|---|---|---|
Vice provincial city | 1 | Wuhan, Hubei | Xiamen, Fujian | ||
2 | Guangzhou, Guangdong | Ningbo, Zhejiang | |||
3 | Shenzhen, Guangdong | Changchun, Jilin | |||
4 | Chengdu, Sichuan | ||||
5 | Hangzhou, Zhejiang | ||||
6 | Jinan, Shandong | ||||
7 | Qingdao, Shandong | ||||
8 | Harbin, Heilongjiang | ||||
9 | Nanjing, Jiangsu | ||||
10 | Dalian, Liaoning | ||||
11 | Xi’an, Shanxi | ||||
Prefectural city | 1 | Chansha, Hunan | Dongguan, Guangdong | Foshan, Guangdong | Haidian, Beijing |
2 | Suzhou, Jiangsu | Wuxi, Jiangsu | Changzhou, Jiangsu | Mianyang, Sichuan | |
3 | Nantong, Jiangsu | Zhuzhou, Hunan | Yichang, Hubei | Minxing, Shanghai | |
4 | Zhenjiang, Jiangsu | Taizhou, Jiangsu | Anyang, Henan | Huizhou, Guangdong | |
5 | Zhengzhou, Henan | Weifang, Shandong | Zhongshan, Guangdong | Xiqing, Tianjin | |
6 | Luoyang, Henan | Zibo, Shandong | Chaoyang, Beijing | Deyang, Sichuan | |
7 | Dongying, Shandong | Hefei, Anhui | Xiangtan, Hunan | Jiangbei, Chongqing | |
8 | Yantai, Shandong | Jiaxing, Zhejiang | Panzhihua, Sichuan | ||
9 | Fuzhou, Fujian | Nanyang, Henan | Nanchang, Jiangxi | ||
10 | Quanzhou, Fujian | Huzhou, Zhejiang | |||
11 | Wenzhou, Zhejiang | Changji, Xinjiang | |||
12 | Wuhu, Anhui | Xinxiang, Henan | |||
13 | Guiyang, Guizhou | ||||
County level city | 1 | Changshu, Jiangsu | Jiangyin, Jiangsu | Jimo, Shandong | |
2 | Kunshan, Jiangsu | Danyang, Jiangsu | Haimen, Jiangsu | ||
3 | Zhangjiagang, Jiangsu | Ningguo, Anhui | |||
4 | Yiwu, Zhejiang |
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Zhang, Y., Liu, H., Jin, Z. (2016). A Study on the Effects of Intellectual Property Policies in China: Evidence from China’s ‘IP Demonstration City’ Program. In: Prud’homme, D., Song, H. (eds) Economic Impacts of Intellectual Property-Conditioned Government Incentives. Springer, Singapore. https://doi.org/10.1007/978-981-10-1119-1_11
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