The Economics of Intellectual Property Rights in China Patents, Trad

The protection of intellectual property rights (IPRs) is a contentious issue in developing and emerging economies. While countries like China are often reluctant to strengthen IPRs, industrialized countries complain about welfare losses in their markets d

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GABLER RESEARCH

Johannes Liegsalz

The Economics of Intellectual Property Rights in China Patents, Trade, and Foreign Direct Investment With a foreword by Prof. Dietmar Harhoff, Ph. D.

RESEARCH

Bibliographic information published by the Deutsche Nationalbibliothek The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available in the Internet at http://dnb.d-nb.de.

Dissertation Ludwig-Maximilians-University Munich, 2010

1st Edition 2010 All rights reserved © Gabler Verlag | Springer Fachmedien Wiesbaden GmbH 2010 Editorial Office: Ute Wrasmann | Jutta Hinrichsen Gabler Verlag is a brand of Springer Fachmedien. Springer Fachmedien is part of Springer Science+Business Media. www.gabler.de No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the copyright holder. Registered and/or industrial names, trade names, trade descriptions etc. cited in this publication are part of the law for trade-mark protection and may not be used free in any form or by any means even if this is not specifically marked. Cover design: KünkelLopka Medienentwicklung, Heidelberg Printed on acid-free paper Printed in Germany ISBN 978-3-8349-2371-4

Foreword The importance of intellectual property rights in industrialized countries, as well as in emerging economies, has been increasing considerably over the past two decades. An important event in the course of this development was the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Especially regarding the economic development of the People's Republic of China (PRC), intellectual property rights have attracted the attention of scientists and decision-makers in business and public policy. While China meets the basic legal requirements of a well-developed system for the application and examination of intellectual property rights, the enforcement of these rights still proves to be a major issue. Academic research regarding China's IPR system is still sparse. Moreover, there are considerable gaps in the literature. In previous academic studies, the examination process at the Chinese State Intellectual Property Office (SIPO) has not been researched thoroughly. Moreover, the fundamental relationship between international trade flows, foreign direct investment and the design of the patent system in the People's Republic is in need of more detailed analysis. In his dissertation, Johannes Liegsalz tackles three specific questions immediately related to this nexus. He applies multivariate econometric methods to different data sets which were assembled specifically for the purpose of this thesis. The first chapter of the thesis analyzes the duration of the examination process for patent applications at the SIPO. The second chapter provides new results which deepen the understanding on the relationship between patent rights and export