The Effects Of The Intellectual Property System On China’s Economic Growth

Since the reform and opening up, China has made remarkable achievements ineconomic construction, but with the total economy growing, the low level ofindustrial technology and the problem of poor quality of laborers in our country havebecome increasingly prominent, it has seriously hampered the sustainabledevelopment of China’s economy. The21st century is the era of the knowledge-basedeconomy, without the accumulation of knowledge and technological innovation,China will not be able to control your own destiny. Effective intellectual propertyprotection system is very important to promote the creation of new knowledge andnew technology, therefore, objective, comprehensive, in-depth study of theintellectual property system and analyzing its impact on the role of economic growthhave major implications for the long-term development of China’s economy. In thispaper, based on a new theory of economic growth, we explore the impact of theintellectual property system for China’s economic growth and make some empiricalanalysis tests.In the new theory of economic growth, a country’s economic growth rate isdetermined by the core technological progress endogenous variable, and technologicalprogress is deeply influenced by the intellectual property system and policy, so theintellectual property system is therefore indirectly through the impact of technologicaladvances on Economic Growth. There are two main intellectual property system onthe role of technological progress: First, the intellectual property system can promotethe technological innovation of domestic enterprises In three respects:1. Encouragingenterprises to carry out technological innovation;2. Playing a role in safeguarding theenterprise technological innovation in the three stages of the technology research,product development, commercialization;3. Ensuring the sound development of domestic technological innovation. Second, the intellectual property system canpromote developing national trade products trade, foreign direct investment andtechnology trade three channels from developed countries for technology transfer andstrong intellectual property system dynamic gains for developing countries ininternational trade is far higher than the static costs.In the empirical analysis part, First of all,China’s gross domestic product andpatents granted two variables are selected to establish the measurement model andsample data to an empirical test and the results confirmed the constant improvementof the intellectual property system in China has a positive effect on economic growth;Next, the total imports and exports of high-tech products and the patent grant amounttwo variables are also selected to establish the measurement model and sample data toan empirical test and the results also confirmed the improvement of the intellectualproperty system is conducive to the advanced foreign technology transfer to thedomestic.In the experience of international intellectual property protection part, focus ofour analysis are the function of Intellectual property system in the economic take-offin the post-World War II in Japan and the rapid development of the pharmaceuticaland software industries in India and the successful experience of the two countries forthe construction of China’s intellectual property system has referential significance.Finally, combining the actual situation of China’s intellectual property systemconstruction, we discusses some of the outstanding problems of China’s intellectualproperty system in operation and practice, and put forward several proposals forreform to improve China’s intellectual property system.