Intellectual Property Protection In China, Foreign Direct Investment

The level of Intellectual Property Right Protection can improve the technological innovation capacity, the quantity and qulity of FDI..Intellectual Propery includes copyright,patent right,ownship of trademark,trade secret. Intellectual Property Right Protection is to keep the owner of Intellcetual Property far away from violation. Based on Ginarte and Park index this paper measures the level of Chinese Intellectual Propery legislation, then counts the degree of law enforcement from four sides: human resourse of law enforcement, national law-based consciousness, the level of economical development, international factors. Lastly this paper calculates the actual IPP index of China between the year of 1984 and 2005.We get the conclusion that there have a positive relationship between IPP index and the flow of FDI after Correlativity,Cointegrate and Granger test.We establish five multiple Linear Regression Model, in which the dependent variable is the contractual flow of FDI of five representative industrys, and independent variables are seven factors that influence the zone choice of foreign corporations. The results indicate the reactivity of knowledge intensive industry' FDI to IPP is more sensitive than labor intensive industry', and the electronic equipment manufactury industry is the most in three representative industry of knowledge intensive industry.Finally, some political advices about how to improve the quantity and quality of FDI are proposed, such as perfect industry legislation, establish system of value assessment and contributive, set up protection fund, improve level of enforcement, and corporation creates special management system.