Xinhua News has reported that on February 4, 2013, China’s central government has published a guideline on its website urging enterprises to make more efforts to improve and innovate.
The government will soon issue policies and provide support in tax, finance, and other areas to help enterprises innovate, Hu Jie, managing partner at Advance China IP in Guangzhou, tells Asia IP. “I do consider the guideline as useful especially for enterprises whose development largely relies on technology and innovation.”
The guideline has set a goal of establishing market-oriented “technology innovation systems” that combine research, development and production inside enterprises by 2015. The guideline wants more R&D investment spent by large- and medium-sized industrial enterprises increasing to 1.5% of their major revenues.
The guideline also states that toplevel enterprises should work to reach the same level of innovation as their international peers and double the amount of patent applications, because China’s innovation is poor and lacks core technology with IPR.
Nevertheless, Hu says “a very positive picture is expected ahead” because not only is the government urging innovation within the country, enterprises and research organizations, but China’s private sector, which accounts for 70% of China’s GDP, also stresses innovation and high-tech development.
While the long-term future is bright, the short term goals are also reachable, Hu says. “Statistics released by the State Intellectual Property Office indicated a 50% boost in patent application from 2011 to 2012. Also, as the Chinese economy is expected to maintain a stable growth in the next few years, the goal of doubling the amount of patent applications will probably be reached earlier than expected. The other goal regarding 1.5% of enterprise revenues for R&D will hopefully be achieved by 2015.”
In addition to the government support, IP agencies should contribute more to IP education and influence IP legislation in order to have a better regime, says Hu.
