The world has been awed by China's rapid and robust growth in IP, but few recognize the primary driving force behind this phenomenon.
Recently, the China National Intellectual Property Administration (CNIPA) released yearly statistics on IP in its 2021 Q1 press conference in Beijing. All major statistics met expectations in 2020, indicating another step forward for China's IP system. *
Summary of the Key Data**
According to the statistics released:
The value of Chinese IP has increased a lot. This change can be seen from IP owners' willingness to maintain patents and the possibility of using IP as collateral for a loan, i.e., IP pledge.
China has recently stopped funding applications for intellectual property rights. It now focuses on strengthening support for subsequent commercialization, application, administrative protection, and public services. ***
Then we wonder, "what has brought China's IP system to this new height?"
Planned Economy Thinking
To answer this question, we cannot underestimate the influence of planned economy thinking. The chart below illustrates the targets set by China's 2014-2020 plan of guidance in the field of IP (excerpted from chart 4 in Innovation's Crouching Tiger).
CNIPA recently released the new action plan in March 2021, but looking retrospectively at this previous action plan from 2014-2020 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 Innovation's Crouching Tiger, the governments at the provincial and municipal levels plan their corresponding sub-targets and allocate resources to reach these targets according to the national targets established.
This system explains why all significant targets can be met in 2020, bringing the Chinese IP system to new heights. Such solid growth is also creating numerous investment opportunities by commercializing intellectual property.
Interested in learning more strategies for IP-related investment in China?
Read more about developments in China's IP ecosystem by visiting our blog at ICTiger2020.com or by following us on Facebook @ICTiger2020 for related news stories. Contact the author at Jili_ICT@springip.com.