Domestic Patents Strengthen China's Technological Independence

In recent years, China has replaced the USA as the world’s leading patent nation. However, while the number of patent applications continues to rise, the average contribution of a Chinese patent to innovation is declining – as is the growth rate of top patents, which are crucial for technological progress. At the same time, domestic inventions are increasingly shaping the direction of innovation in China. This is shown by a recent study conducted by ZEW Mannheim in cooperation with the University of Toronto, the Central University of Finance and Economics in Beijing and Goethe University Frankfurt. This development has implications for China’s economic growth and reveals potential effects of Chinese policy.

“The contribution of foreign knowledge – especially from the USA – to Chinese innovation has recently declined significantly. This points to growing independence on the part of China,” explains Professor Philipp Boeing, co-author of the study and researcher in the ZEW Research Unit “Economics of Innovation and Industrial Dynamics.” “While patent applications from abroad and applications from foreign-invested enterprises in China now account for only a small share, the majority of applications to the Chinese Patent Office come from Chinese private companies and universities. For comparison: In China, the share of foreign patent applications was recently just 10 per cent – whereas in the USA it is around 50 per cent.”