’Patent pool’ initiatives in manufacturing clusters in Zhejiang

Abstract

SummaryBased on a case study of the IPR (Intellectual Property Rights) pool in the lock industry, Wenzhou, Zhejiang Province, China, this paper examines the formation and operation in which producers collectively take action in regularization and management of innovative knowledge in small firmdominated manufacturing clusters there. The study compares this emerging collective IPR management with patent pools in advanced economies, especially the United States, and explores the characteristics of the IPR Pool in Zheijiang manufacturing clusters. First, the essential rationale for collective action lies with the need for the survival and further development of the emerging rudimentary industry, as compared to mature or well-developed industries. Second, innovative knowledge regulated to protect the IPR pool is substitutive rather than complementary, and informal rather than formally granted by the IP administration as in advanced economy counterparts. Third, the local producers association plays a major role in institutional development for IPR regulation, while patent pools in the United States are alliances of members with no geographical proximity ties. The Zhejiang IPR pools example provides the necessary steps for latecomer manufacturing clusters to learn about intellectual assets and fair competition.