The Myth of State-mandated Patent Targets at Golden Networking's China Leaders Forum 2012

Aug. 28, 2012 - PRLog -- (August 16, 2012, New York) China filed more than 1.6 million patent applications in 2011, but only 32 per cent met the highest threshold for patent quality. What’s missing in this picture? Experts and practitioners will discuss China’s impressive innovation potential at upcoming China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", New York, October 2nd  (http://www.ChinaLeadersForum.com).
As reported by The Irish Times’ Michael Martina, China’s ambitious drive to produce millions of new patents in the next few years, as part of a switch from a “made in China” to a “designed in China” economic model, will curtail innovation standards, a European study warned.

China is seeking to transform itself from being the world’s factory floor into a global pioneer by setting ambitious state- mandated patent targets – a goal that has already resulted in the country surpassing the United States last year in patent filings.

“This explosion [of patent applications] has come with a price in terms of the quality and mix of patents. This is not in the right direction,” European chamber secretary general Dirk Moens said.

In some cases, financial incentives and performance evaluations for state-owned firms, officials and academics drive the filing of low-quality patents as they seek to meet quotas – two million annually by 2015 under one national plan.

In addition to inventions, China also gives patents for designs and “utility models”, incremental developments that can advance an existing product but rarely result in technological breakthroughs.

The United States does not use utility-model patents, though some developed countries, such as Germany, do.

Sixty-five per cent of patent applications filed by medium and large-sized Chinese state-owned enterprises in recent years have been for the lower-end design or utility-model patents, making them among the country’s least effective innovators, the study said.

“One cannot drive or ‘force’ creativity, but only nurture it, whereas creativity leading to breakthroughs of the type that typically produce the highest quality patents at best comes in spurts,” it said, noting that at least 20 countries have greater innovation potential than the world’s second largest economy.

China Leaders Forum 2012, "Will the Chinese Tiger Come Roaring Back After the Crisis?", October 2nd, New York City, will provide attendees with the responses to the above-mentioned questions and the most up-to-date review of where the Asian giant stands and the challenges and opportunities for businessmen looking to expand their business with China when others only see growth contraction. Recognized experts, regulators, and strategists, will return to China Leaders Forum 2012 in its fourth edition to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.

China Leaders Forum 2012 is produced by Golden Networking (http://www.chinaleadersforum.com), the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.