How IPR Protection Influences China’s TFP And The Corresponding Empirical Analysis

Generally speaking, the total factor productivity has key effect on long-run development to national economy while the improvement of total factor productivity relies on technology progress and institutional innovation, especially regarding the set up of legislation about intellectual property protection. A highly effective intellectual property protection system plays a vital role not only on protecting and stimulating domestic R & D innovation activities, but also on foreign technology spillovers, it can be institutional arrangement and secure for knowledge accumulation and technology progress.This thesis is based on the theory of endogenous economic growth that is driven by knowledge, starts with a theoretical perspective that reviews the influence of intellectual property protection of TFP and two conduction mechanisms, followed by an empirical research which applies data samples of national data and provincial panel data.The empirical analysis results are as follows:Under current Chinese strength of intellectual property protection, the performance of Chinese R&D capital stock is not as expected, meanwhile the international technology spillovers act as an important external driving force for Chinese technological progress; Strengthening intellectual property protection will assist accelerating Chinese independent innovation, but would inhibit international technology spillover to some extent. Test of provincial panel data model illustrates further that regional economic developments in China are explicitly different, and the sources of promoting local productivity are not same as well. According to the results of econometrical analysis, this thesis holds the views that, the government should put more efforts on the construction and utilization of IPR protection system, in order to guide innovation and ease the dependency on foreign technology. The construct of IPR protection system is a long-term task, which demands equality confronted with law issues. From a long-term perspective, the accomplishment of IPR system would stimulate the formalizing of innovative mechanism, which would be turned into internal force for economy development. IPR protection, however, would lead to diversity in a short term regarding its influence on different regions that standing on uneven technological fundaments and developing phases. Accordingly, it is absolutely essential to inspire effectiveness of the functioning of IPR protection system to developed regions, so that motivating the nation’s progress and exploration on sophisticated technology; as to the less developed regions, it is of considerable importance to deeply regulate transaction standards of intellectual property, improve the transaction efficiency, and promote the floating and diffusion of advanced knowledge as well as technology, by combining the stage characteristics of local economy developments and rationally introducing subsidy policies. In the course of constructing IPR protection system that is internationally concerned, it should be fundamentally centered by local protection, subsequently deepen the communication and cooperation with international intellectual property by rules of being active, controllable, and gradual so as to fulfill the collaboration of the long- run benefits and China’s current requirement for technology progress.