Research On Dynamics Amongest IP Protectionism, Technology Spillover In China

Ever since the social and economic openness of China in 1990, the inflow of foreign capital has been increasing significantly.Date back to 1979, there are barely foreign direct investment projects to be found in China, within a few decades, China once has become the country whose amount of FDI ranked only after the US. The average growth rate of FDI was up to 13%. Such an rapid influx of FDI provides necessary financial resource for china as a powerhouse of international trading. The nation also enjoyed the spillover of such money inflow, which lightened the hope for technology advancement as well as innovation.The internationalization of intellectual property rights protection to developing countries mean that they need enhance the level of intellectual property rights protection, even reach to the same level with developed countries in the end Comparing to developed countries, the ability of innovation of developing countries is very weak, due to this reason, strengthen the intellectual property rights protection of developing countries, it will bring great effects to their economy and development. But what are the effects are they good or bad, we have no idea. This question also is the most concerned question for the countries such as CHINA.The essay will discuss issues rose from IP protectionism, approaching by analysing the different investment strategies and studying on the dynamics between the FDI and social well-beings. A comparable model of an enterprise in development country verus a counterpart in developing country is employed. It is assumped under the condition of IP protectionism exsits, how the technology spillover derived by FDI influences the social well-beings.Consequently,the data generated from China was explored to justify the influence of the intellectual protection technology,which confined to the overflow of China FDI technology and social welfare.Basing on the data sourced from the Chinese statistical yearbook, 15 hi-tech industries were analysed,and the outcomes show as following:①remarkable direct proportion between the technological absorbability of the country and the technology volume is existed; Technological productivity and technological absorbability have a positive effect on the economic growth.②due to the intellectual property , the researched and developed ability of domestic enterprises has been enforced, and it become the vital factor of technological progress of high-tech industry of our country. Therefore,it depict that the currently adopted intellectual property right protection system has promoted the domestic-investment researches and develops effectively ability.③generally, the IPP system depress the overflow effect and the benefits highlighted by the restriction of the pirate, moreover,the controll of senior professionals can lead to the less possibility of overflow to a certian extent④China's IPR protection at this stage in general, lower FDI technology spillover effect.⑤From the absorption of foreign direct investment in technical expertise, strengthen technological progress, the need for adequate stock of human capital.Lastly, based on what have been discussed, this essay attempts to provide prescriptions on reforming china's current IP related policies.