Vapor
The world is awed by China's rapid and robust growth in IP. But few recognize the primary driving force beyond this phenomenon.
Recently,
the China National Intellectual Property Administration (CNIPA)
released yearly statistics on IP in its first-quarter press conference
of 2021 in Beijing. All major statistics met expectations in 2020,
indicating another step upward for China's IP system. [1]
Summary of the Key Data[2]
According to the statistics released:
During the period 2016-2020, the total amount of China's IP pledge reached 709.5 billion yuan (about 109.8 billion dollars), double the amount of 2011-2015. The added value of patent-intensive industries reached 11.5 trillion yuan (about 1.78 trillion dollars).
In 2020, China's patent and trademark pledge financing projects reached 12,039, an increase of 43.8% year-on-year; the total amount of pledge financing reached 218 billion yuan (about 33.7 billion dollars), an increase of 43.9% year-on-year.
In 2020, the structure of Chinese
domestic invention patents' quality had improved. 281,000 invention
patents maintained for more than ten years, accounting for 12.3% of the
total, an increase of 1.0% from the previous year.
From January to November 2020, China's exports of intellectual property royalties amounted to 7.47 billion dollars, a year-on-year increase of 24.2%, achieving the most significant growth in 2016-2020.
The
value of Chinese IP has increased a lot. This change can tell from IP
owners' willingness to maintain patents and the possibility of using IP
as collateral for a loan, i.e., IP pledge.
Also, recently
China has stopped funding applications for intellectual property rights.
It now focuses on strengthening support for subsequent
commercialization, application, administrative protection, and public
services.[3]
Then the question comes to, what brings China's IP system to this new height?
Planned Economy Thinking
To
answer this question, we cannot underestimate the influence of planned
economy thinking. Following were the targets set by China's 2014-2020
plan of guidance in the field of IP (excerpted from chart 4 in the book
"Innovation's Crouching Tiger").
In March 2021, CNIPA
just released the new plan. But looking retrospectively at this
2014-2020 plan reveals the secret driving force for China's IP solid
growth.
Are you surprised to see such concrete targets?
These
indices serve as government officials' Key Performance Indicators
(KPIs) to evaluate their performance in each planning cycle. As pointed
out in the book "Innovation's Crouching Tiger," according to the
national targets, the governments at the provincial and municipal levels
plan their corresponding sub-targets and allocate resources to reach
them.
This mechanism explains why all significant targets can
meet expectations in 2020, bringing the Chinese IP system to a new
height. Such solid growth is also creating numerous investment
opportunities by commercializing intellectual property.
More strategy for IP-related investment in China
Interested? Read more about developments in China's IP ecosystem by visiting our blog at ICTiger2020.com, or Facebook at ICTiger2020 for related news updates. Contact author at Jili_ICT@springip.com.
[1]https://english.cnipa.gov.cn/art/2021/1/27/art_2509_156421.html
[2]https://www.cnipa.gov.cn/col/col2521/index.html
[3]https://www.cnipa.gov.cn/art/2021/1/22/art_53_156324.html
Source:iprdaily.com
Author:Jili Chung, Josie Chen, and Jonas Hou
Editor:IPRdaily-Vapor