The Effects Of IPR On Technological Catch-up

There is a mutual determinant relationship between intellectual property rights and technology, intellectual property rights were born together with modern technology. It is well known that the degree of intellectual property rights protection in different provinces of China depends on how to enforce the law not the law itself. The purpose of this essay is to explore the influencing process of intellectual property rights protection on technological catch-up. This article points in four directions. After the measurement of the degree of intellectual property rights protection and the TFP growth rate, we find that intellectual property rights protection and the TFP growth rate behave inverted U-curve characteristics and there is one optimal level of intellectual property rights protection when taking China as a whole.Our technological catch-up hypothesis suggests that, the intellectual property rights protection acts two opposite directions on the pace of realization of technological catch-up. We gain this conclusion by constructing panel data model of 30 provinces between the year 2000 and the year 2012. Intellectual property rights protection improves TFP growth rate by stimulating innovation as well as blocks the rate of technological advance by hindering the diffusion of patented technology. The way intellectual property rights protection blocks the rate of technological catch-up has something to do with that province’s relative technology level compared with Shanghai. It also means that lagging behind in productivity level provides a quite strong circumstance for subsequent technological catch-up of that province, by making use of "after-advantage to develop", less developed province may realize technological catch-up.According to the scientific and technological level of year 2000,30 provinces are divided into two groups, backward areas and developed areas. We find that the less developed in technology and the stronger the protection of intellectual property rights, the slower the technological catch-up rate, taking the possibility of catch-up into consideration. This result reminds us that the technological leaders should tighten the protection of intellectual property rights, and vice versa.Other institutional category such as FDI plays an unexpected role in improving technological catch-up. From year 2000 to year 2012, the introduction of FDI did not significantly promote regional technological catch-up speed in China. Furthermore, when detect the effect of FDI on catch-up rate in backward area, we find it significantly negative. It reminds us that quality is as important as quantity when introducing FDI.Based on the empirical analysis, this paper puts forward some significant suggestions. Gradually improve the level of legislation, academic research and enforcement about intellectual property rights, China will present higher TFP growth rate. Every province has its choice to determine the level of intellectual property rights, but taking relative technological development level into consideration is in need. It is not necessary that knowledge diffusion appear together with intellectual property rights infringement. Technological diffusion needs to take on more responsibilities in the technology system.