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IPR "deficit" besets Chinese firms
www.chinanews.cn 2006-04-20 09:19:37
Chinanews, Apr.20 - The Boston Consulting Group's (BCG) latest research
report shows that the proportion of Chinese enterprises' spending on
innovation, research and development almost equals 300 times that of
their share of global patents, and intellectual property right (IPR)
"deficit" has become an unavoidable puzzle for them when participating in
international competition.
This report quotes statistics from the Organization for Economic
Cooperation and Development (OECD) that Chinese companies' expenditure on
R&D had increased from 20-odd million yuan (US$2.5 million) in 1991 to
nearly 200 million yuan in 2004, and the ratio of their R&D investment to
GDP almost doubled. At the same time, their share of patents in the US,
Japan and Europe only reached 0.17%, 0.04% and 0.19% respectively.
Ralph Eckardt, leader of BCG's Intellectual Property Strategy Practice,
said at a press conference convened in Beijing that half of China's
products are exported to the US and Japan, however, its IPR protection in
these main trade partner countries is quite weak, which means Chinese
companies' tremendous R&D investment is very likely to face the risk of
losses.
According to the report, Chinese companies' annual patent applications
within the country rose from 90,000-odd in 1998 to over 280,000 in 2004.
In contrast, their patent applications in the US, Japan and Europe in
2004 were only about 1,800, 400 and 260 respectively.
BCG Senior Vice President and Director David Michael said that Chinese
companies must recognize that patent applications in China cannot protect
their intellectual property overseas. To compete with powerful
international enterprises, Chinese companies must develop their own IPR
portfolios and strategies.
It is time for Chinese companies to carry out IPR-oriented overseas
merger and acquisition, and such a move is no threat to any country.
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