Foreign patents surge and technology spillovers in China (1985–2009): Evidence from the patent and trade markets

Abstract

The paper investigates the determinants of foreign patent surge and the effects of technology spillovers in China based on an industry-level sample of 19 countries and regions from 1985 to 2009. We explore two hypotheses to explain the increasing foreign propensity to patent and the effects of technology spillovers in China, the market covering hypotheses and competitive threat hypotheses. The results show strong support for the competitive threat hypothesis. However, the foreign patenting surge in China does not mean China has more access to outsource advanced technology; on the contrary the technology spillover from foreign countries in China is limited. The paper investigates the determinants of foreign patent surge and the effects of technology spillovers in China based on an industry-level sample of 19 countries and regions from 1985 to 2009. We explore two hypotheses to explain the increasing foreign propensity to patent and the effects of technology spillovers in China, the market covering hypotheses and competitive threat hypotheses. The results show strong support for the competitive threat hypothesis. However, the foreign patenting surge in China does not mean China has more access to outsource advanced technology; on the contrary the technology spillover from foreign countries in China is limited.