Abstract
China’s expanding patent applicants reflects the results of the innovation catch-up strategy, but there have been persistent doubts about patent bubbles. Using SADF, GSADF and BSADF tests, this paper found that the phenomenon of the patent bubble is not common during the observation period in China’s listed companies from 2007 to 2019, and different degrees of patent bubbles occurred only in four industries. China’s technology market is still in the stage of innovation accumulation and catch-up.
Highlights
Innovation is the primary driving force for development, and protecting intellectual property rights means protecting innovation
This study proposed index I (R&D input per unit patent), which is measured by the ratio of the R&D investment of an enterprise in a certain period and the number of one-period lag patent applications
The current state of patent development is not enough to support the transition of China's economy to high-end sectors
Summary
Innovation is the primary driving force for development, and protecting intellectual property rights means protecting innovation. Since 2011, the number of patent applications from China received by SIPO has been ranked first in the world, which reflects the achievement of China's patent system and innovation strategy. Under the innovation incentive from the government, the research and development efficiency of enterprises or research institutions is low, and the patent application motivation is distorted, leading to a large number of low-quality patents flooding the market, and the trend of patent bubble is continuously intensified [1,2]. The development goal of the Chinese technology market changes to achieve the balanced development of patent quantity and quality. The 14th Five-Year Plan and the 2035 Vision Goals outline the goals for the development of domestic science and technology innovation for China, emphasizing the development of high-value invention patents and squeezing out the patent bubble. This study makes a detailed investigation on the existence, degree, birth time and death time of patent bubbles from the industry level in China
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