China's Innovation Landscape

Abstract

The People’s Republic of China has experienced three decades of sustained, strong annual economic growth as it transitions from a centrally planned economy to a free market. Currently the world’s second largest economy, China recognizes scientific and technological innovation as an increasingly important strategy to fuel the next phase of its productivity growth. However, the drivers and trajectories of China’s scientific and technological growth remain underinvestigated. To understand elements of China’s innovative activities, particularly in science and technology, an analysis of comprehensive patent data provided by the State Intellectual Property Office (SIPO) of China is presented here. A rapidly growing, domestic, private-sector and geographic diffusion of capacity mark the first two decades of China’s patent system. These findings have implications for policy and strategy.

Keywords: Innovation and Patents, Science, Technology, Geographic Diffusion, China

JEL Classification: O31, O32, O33, O34, O38