Relying on patents, Chinese companies are still 20 years behind

Researchers at the China Private Science and Technology Promotion Committee recently revealed at the 2013 China Corporate Legal Conference that the number of patents of some large Chinese companies is as many as several thousand or tens of thousands per year, but compared with patent countries such as the United States and Japan, Chinese companies The level of “profit-making by patents” still lags behind for about 20 years.

This situation reflects a series of problems, indicating that China's protection of intellectual property rights needs to be improved; it still needs to work hard to transform patents into real productivity, promote technological innovation and industrial progress; it also reveals that we only focus on the number of patents, neglect the quality of patents, The problem of patent efficiency is not valued, and the defects of Chinese enterprises' excessively concentrated patents in the country and neglecting to go to the world and go abroad. According to reports, the main source of revenue for many US companies is intellectual property rights. The average US intellectual property transaction reached US$370,000. In the top ten IP litigation cases in the US, the average compensation amount was US$990 million. Professionals believe that the income generated by Chinese intellectual property rights to enterprises is almost negligible. The average amount of patent damages of domestic companies does not exceed RMB 500,000. On the basis of intellectual property transactions, the average domestic company is less than RMB 50,000.

Patents are of great importance to a country's economy, especially to the development of China's economy at this stage. We say that the four wheels of economic growth, or four elements, are human resources (labor supply, education, discipline, incentives, etc.), natural resources (land, minerals, fuel, environmental quality, etc.), capital (machines, factories). , roads, etc.) and technology (science, engineering, management, entrepreneurship, etc.). The general rule is that a country's rapid development period before reaching the middle income stage relies mainly on human resources, natural resource advantages, and capital investment to promote economic growth. In the end, it is still a large investment mode of capital funds, resources and energy, and labor resources. The long-term equilibrium of the neoclassical growth model has shown that if economic growth relies solely on capital accumulation and capital investment, and there is no technological change, then economic growth and improvement in living standards will eventually stagnate. The growth of a developed market economy depends on labor, capital growth and technological innovation. In fact, the huge source of growth in production potential in Europe, North America and Japan is the trickle of never-ending inventions and technological innovations. One of the secrets of the success of the developed countries across the middle-income trap is technological innovation and innovation.

From the perspective of the entire Chinese economy, including the eastern developed regions, human resources are encountering the turning point of Lewis, the labor dividend is disappearing; natural resources have become scarce and exhausted, not only the advantages are gone, but also become the shortcomings and constraints of China in the future. The unsustainability of capital investment has been exposed, and a large amount of investment has no demand support, which can only cause a great waste of overcapacity. The successful experience of advanced economies tells China that success in spanning the middle-income trap must rely on technological innovation and progress.

However, technological change and innovation have two characteristics. First of all, technological change is an output of the economic system with large investment and high risks. The advent of new pharmacies is inseparable from the fact that pharmaceutical companies have spent hundreds of millions of dollars on research and testing; smart and fortunate people can make huge returns, even like Microsoft's Bill Gates, become a billionaire with billions of dollars; But there are also many failed inventors or companies that end up in a hollow space.

Secondly, technological innovation and innovation are a kind of public goods, and they are items that are “non-compatible”. This means that it can be used by many people at the same time without being afraid of being wasted by some people. At the same time, the cost of producing such an invention is expensive, but the cost of copying it is low. These characteristics of technological change have led to serious market failures, which means that it is sometimes difficult for inventors to obtain reasonable returns from their inventions because others can easily replicate these inventions. Moreover, the more basic research, the higher the degree of market failure. Therefore, the government must pay more attention to ensure that those inventors have enough motivation to engage in research and development. The government must pay more attention to and protect intellectual property rights, spare no effort to protect patents and copyrights, and provide sufficient market returns for those creative activities.

China is in the critical period of getting out of the middle-income trap. It is an absolute flaw in the Chinese economy that Chinese companies have profited from patents for 20 years. The stamina and sustainability of China's economic development rely on technological change and innovation to move forward. This kind of hard injury is not cured, and the prospects for China's economic development are worrying.

In all economic fields where competition is strong, the invisible hand of the market can be fully utilized, but technological innovation, invention and creation must rely on the government's tangible hand to protect patent rights and copyrights. This is related to the success of the Chinese economy in its complete transformation.

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