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What can explain the Chinese patent explosion?

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Listed:
  • Markus Eberhardt
  • Christian Helmers
  • Zhihong Yu

Abstract

We analyse the ‘explosion’ of patent filings by Chinese residents, both domestically and in the USA during the early 2000s, employing a unique data set of 374,000 firms matching patent applications to manufacturing census data. Our analysis reveals that patenting is highly concentrated among a small number of firms, operating in the information and communication technology (ICT) sector. Although increases in patent filings by these companies are partly driven by increased R&D intensity, our analysis suggests that the explosion of patent filings at the Chinese patent office is driven by factors other than underlying innovative behaviour, including government subsidies that encourage patent filings directly.

Suggested Citation

  • Markus Eberhardt & Christian Helmers & Zhihong Yu, 2017. "What can explain the Chinese patent explosion?," Oxford Economic Papers, Oxford University Press, vol. 69(1), pages 239-262.
    • Handle: RePEc:oup:oxecpp:v:69:y:2017:i:1:p:239-262.
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    File URL: http://hdl.handle.net/10.1093/oep/gpw042
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    Citations

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    Cited by:

    1. Hong Li, 2023. "Innovation and financial performance: An assessment of patenting strategies of Chinese listed firms," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1693-1712, April.
    2. Dai, Xiaoyong & Wang, Mengqi, 2024. "Unintended effects of tax incentives on firms’ strategic patenting," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 1-24.
    3. Jiafeng Gu, 2021. "Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    4. Wenlong He & Zi-Lin He & Tony W. Tong, 2020. "Ownership Change and Firm Innovation: The Mediating Role of Interest Alignment," Strategy Science, INFORMS, vol. 5(1), pages 17-38, March.
    5. Carsten Fink & Bronwyn H. Hall & Christian Helmers, 2018. "Intellectual Property Use in Middle Income Countries: The Case of Chile," NBER Working Papers 24348, National Bureau of Economic Research, Inc.
    6. Yutao Sun & Cong Cao, 2021. "Planning for science: China’s “grand experiment” and global implications," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-9, December.
    7. Tetsugen Haruyama & Ken-ichi Hashimoto, 2020. "Innovators and imitators in a world economy," Journal of Economics, Springer, vol. 130(2), pages 157-186, July.
    8. Siping Luo & Mary E. Lovely & David Popp, 2017. "Intellectual returnees as drivers of indigenous innovation: Evidence from the Chinese photovoltaic industry," The World Economy, Wiley Blackwell, vol. 40(11), pages 2424-2454, November.
    9. Stephane Ruiz-Coupeau & Björn Jürgens & Michaela Keßelring & Victor Herrero-Solana, 2020. "Sustainability in Mineral Exploration—Exploring Less Invasive Technologies via Patent Analysis," Sustainability, MDPI, vol. 12(22), pages 1-18, November.
    10. Guopei Fang & Holger Görg & Aoife Hanley & Haiou Mao, 2022. "Foreign Divestment – Crisis or Chance for China's Innovation Edge?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(6), pages 1-33, November.
    11. Wu, Howei & Lin, Jia & Wu, Ho-Mou, 2022. "Investigating the real effect of China’s patent surge: New evidence from firm-level patent quality data," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 422-442.
    12. Xiaoying Li & Yin-Fang Zhang & Laixiang Sun, 2018. "Industry Agglomeration, Sub-National Institutions and the Profitability of Foreign Subsidiaries," Management International Review, Springer, vol. 58(6), pages 969-993, December.

    More about this item

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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