An investigation of patent-intensive industries and government development strategy: evidence from China

Abstract

Purpose The number of patents in China has grown rapidly in recent years. The purpose of this paper is to investigate how patents impact economic development in China. Design/methodology/approach This paper developed an empirical model by using panel data of 42 China's patent-intensive industries to investigate the economic contribution made by Chinese patent-intensive manufacturing industries. Findings This paper found that the intensity of valid patents is strongly positively related to economic growth. The intensity of yearly added patents presented an inverse U-shaped and a U-shaped curve with the economy made by China’s patent-intensive industries. The correlativity mainly depended on whether the patent intensity converges near the economic indicators. Meanwhile, from the perspective of input–output efficiency, for China’s patent-intensive industries, R&D institutes were overinvested, followed by R&D intensity and R&D staff. Originality/value Investigating patent influence on economic development is quite complex research. Existing studies have mainly focused on patent protection in legal systems, but have not provided a definitive answer to what the real influence is. This study sought to narrow this gap from the patent economy perspective.