The Study On Patent Production Mechanism In China’s Listed Companies

With the advent of the knowledge-based economy, whether macro level of nations or micro level of enterprises, intellectual property rights have been increasingly concerned. The enhancement of intellectual property rights consciousness can promote economic development and improve the market competitiveness. Patent is one of embodiment and expression of the independent intellectual property rights. In order to gain advantages in the increasingly fierce competition environment, enterprises have to take part in patent production and technological innovation, constantly develop new products and new processes, constantly increase products’functionality and use, and continuously improve products’appearance, design and color, etc. According to the statistics of patent statistical bulletin 17,2011 from the State Intellectual Property Office, we can find that the average economic benefits of enterprises which have applied for patents is obviously better than that of all enterprises, and is more better than that of enterprises which have not take part in patent production and patent application. Now that patent has so much charm, the study on patent production mechanism in listed companies has practical significance.At first, this paper summarizes and reviews the related research about the patent production influence factors and the knowledge production function by means of literature. Secondly, according to the general form of the knowledge production function proposed by Griliches(1979), in combination with the Cobb-Douglas production function, and ultimately the paper will deduce the model of patent production mechanism which we have to study. And, through theoretical analysis this paper will determine the influence factors of patent applications, namely R&D capital and personnel investment, market power, firm size, managers’ heterogeneity, ownership concentration, equity balance degree and the proportion of state-owned shares. Thirdly, this paper will select listed companies from the Shanghai and Shenzhen stock market as samples, due to the heterogeneity of enterprises; we will divide the selected samples into high, medium and low technology three categories on the basis of the index of R&D intensity, and conduct the descriptive statistical analysis about product applications and its influence factors of listed companies of different kinds of technology by use of measurement methods and multivariate statistical methods, then analyze the patent production characteristics of the different types of listed companies. Fourthly, using the actual data, the paper will empirically test the model of patent production mechanism in different types of companies according to panel data model. The empirical results show that R&D capital investment, skilled workers, firm size, equity balance degree and the general managers’education level has a role in promoting the patent applications of listed companies in each technology type, but the extent of the promoting effect is not the same; ownership concentration and the proportion of stated-owned shares can inhibit the patent production activities of listed companies in each technology type, but the inhibition strength is different. Market forces has the promoting effects to patent applications of listed companies in the high and low technology type, but has the blocking effects in the medium technology type, the reason may be that after obtaining market power, listed companies of different kinds of technology pay attention to something different. Finally, this paper will put forward some countermeasures to promote patent productions in various types of listed companies on the basis of front research.