Case studies of Chinese firms' experiences with intellectual property-conditioned state incentives
by Dan Prud'homme; Xingle Long
International Journal of Technology, Policy and Management (IJTPM), Vol. 19, No. 3, 2019

Abstract: This paper explores how useful China's intellectual property (IP)-conditioned state incentives - especially subsidies and awards tied to patenting requirements - are to improving Chinese firms' competitiveness. Based upon three short case studies derived from interviews with Chinese firms in Jiangsu province, we reach several tentative conclusions. First, the incentives provide external resources that can directly and indirectly help firms improve their competitiveness. Second, the incentives may be particularly useful for firms facing significant patent thickets. Third, the incentives are not always sufficiently funded or accessible. Fourth, the state sometimes precludes the incentives from covering the costs of in-licensing foreign-owned IP and technology, which can be counterproductive to the state's ultimate objective of helping Chinese firms catch up with foreign incumbents. Overall, we conclude that Jiangsu's IP-conditioned state incentives somewhat help indigenous firms improve their competitiveness, but could be more optimally formulated and administered.

Online publication date: Fri, 26-Jul-2019

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