China and Patents

There is a recent article in Science detailing the growth of patents in China. This should be another chilling call to the US Government bercause it clearly shows a long term trend that China does not only want to be the factory to the world but the leading innovator.

First the long term growth of patents is shown below:



















This is a compelling demonstration of a strong and vibrant environment for new products. This means that the Chinese not only have the capability but have the intellectual property to build a competitive threat to the US. In addition as Science states this is being done in the private sector in China, not Government controlled. Strange that China is more free market than the US.

A closer look over the last decade gives some understanding of the strategic areas of interest and their growth as shown below:



















Finally on an annual basis in 2008 we have the following showing detailed percents.



















As Science states:

Three key trends stand out. First, the increasing dominance of private firms over individuals, universities, and state-affiliated institutes suggests a fundamental shift in contribution to China's innovation landscape toward the private sector as China liberalizes its markets. Second, the surge in patents granted to domestic Chinese entities versus foreign entities across the 12 major science and technology classes suggests a rise in China's indigenous innovative capabilities, which have been well established in regions of major economic and social developments, such as Beijing, Shanghai, Tianjin, Guangdong, and Jiangsu. Third, the evening-out of regional RSTA suggests that scientific and technological capabilities have systematically diffused inward across the provinces to enhance China's overall innovative capacity. Although this pattern contrasts with previous empirical evidence from the United States suggesting that diffusion of knowledge and innovation are geographically localized and concentrated in major cities rather than outside, it could provide some validation to the goals of the Chinese government's policy to coordinate and develop the central and interior regions. Such a centrally enforced strategy has the potential to promote innovation diffusion.

Not only is this a platform for innovation diffusion but it is a highly efficient model for economic progress.