IPRs Fuel Momentum for Economic Development

China's economy continued steady expansion in the first half of 2017 with GDP up 6.9 percent year on year on the basis of comparable prices to about 38.149 trillion yuan, according to the latest data released by the National Bureau of Statistics (NBS). In the first six months, the added value of high technology industry and equipment manufacturing industry increased by 13.1% and 11.5% respectively while the manufacturing industry accelerated its steps to mid-to-high end level. Meanwhile, the IPR exports in the first half of 2017 maintained rapid growth, amounting to 14.94 billion yuan, up 458.4%.

"These achievements show that the innovation-driven development strategy has already begun to show early results and the IPR has been playing a growing role in stimulating economic growth. Innovation and IPR are now the biggest growth drivers to keep the economy perform within the reasonable range," says Professor Li Shunde, from the Institute of Law under the Chinese Academy of Social Sciences.

Statistics show that in the first six months of 2017, several Chinese enterprises enjoyed medium-to-high speed growth of revenues and profits. It is worth noting that most of them are enterprises with an IPR advantage. Take ZTE Corporation as an example, it filed more than 1,000 patent applications via the PCT in the first half and its operation profits amounted to 3.294 billion yuan, up 564.83%. In the meantime, ZTE’s growth rate in digital broadband market paced the world while its market share of optical networks ranked world top two. Huawei, hoarding 60,000 patents in total at home and abroad, also boasted its share of steady growth in the first six months of 2017 with its operating margin hitting 11%.

According to professor Li, innovation is the first driven force for development and enterprises are the biggest innovators. The continuous activity of enterprises and other innovators, the sustainable improvement of IPR quality and quantity, the continuous enhancement of high value patents are major driving forces for fast development of high technology industry and equipment manufacturing industry.

Statistics from SIPO show that in the first half of 2017, China granted 209,000 patent applications for invention, 160,000 of which were granted to domestic filers. The PCT applications received by SIPO climbed to 21,600 and up 16% year on year, 20,000 of which were filed by domestic applicants, up 15.3% year on year. As of the end of June 2017, China was in possession of 1,227,000 invention patents (not counting those originated from Hong Kong, Macau and Taiwan). Every 10,000 Chinese owned 8.9 invention patents.

Li says that strengthening IPR protection inspires growth of innovation-based economy. After years of continuous efforts in improving policy-making and legislations for IPR protection, China has initially built a strong, vast and efficient IPR protection work pattern, which effectively triggers the social innovation and injects energy for economic growth. "Sustainable enhancement of innovation environment, continuous improvement of IPR quality and quantity are the internal motivations for steady economic growth. China should continuously strive to protect IPR and inject powerful energy for social and economic development during the 13th Five-Year period, "stresses Li.

Source: China IP News