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* * * In terms of sheer quantity, the patent production in China has recently gaining momentum in absolute count and the patenting propensity has similarly increased. The number of patent applications per billion yuan of real RD expenditure nearly doubled between 1986-2007 while the number of patent grants has more than tripled. The fact that patent growth outstripped real RD expenditure and consequently the patent boom is mainly attributed to the flow of foreign direct investment (FDI) and China’s patent law amendments as Hu Jefferson (2009) suggested. ? The substantial surge in patent production of China is not limited to domestic application and grants but is also evident in international patenting. China’s patent application to USPTO increases ten times within the two recent decades, and is most conspicuous from 1997 on (Ma, Lee, and Chen, 2009). In addition, the number in patent grants has moved up the rank. China’s patents granted by USPTO in year 2002 amount to 289, ranked 21 worldwide, while the number increase to 1225, ranked 12 worldwide. Comparing to other comparable emerging market such as the BRIC countries (namely, Brazil, Russia, India and China), China has the best performance. According to USPTO (2009), during the period 1963-2008, the total counts of BRIC’s utility patent grants are 2094, 2409, 4080 and 5162, respectively. However, our pilot study indicate that FDI does not relate to patent production, whether USPTO nor China patents. Similar to the results of Schneider (2005) who used USPTO data. * Figure 1 shows the trend of international patent production in China from 1981-2007. In 1981, the count for patent grants is two, and the count by 2007 is 1113. It’s apparent that the production has a significant take-off since 1997. While the annual growth rates during the period 1997-2007 fluctuate, overall, there is a significant positive time trend. The cumulative annual growth rate is 34% between 1981and 2007, and such rate between 1997 and 20
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