Adjustment of patent law and the independent innovation

Abstract

So far, the patent law in China has changed for three times, which made the strategy focus from the introduction of foreign advanced technology to enhance the ability of independent innovation. This paper add FDI technology spillover as a mediating variable in the process of analyzing the relationship between patent protection strength and the capability of independent innovation. Selecting domestic, foreign and Hong Kong, Macao and Taiwan three types of data of five high-tech industries from 1998 to 2011 as sample for the study, and using regression analysis to test the hypothesis. The results indicates that, strength of protection has a significant positive impact on enhancing the capability of independent innovation in China. FDI technology spillover plays a mediation role in the relationship between the strength of patent protection and the capability of independent innovation. Moreover competition has mediating effect between strength of patent protection and ability of independent innovation. However, Demonstration & Imitation and flow of human resource do not have mediating effect. Forward vertical spillovers of FDI have mediating effect, but the backward associated mediating effect was not significant.