Roles Of Intellectual Property In Developing Countries And Its Influencing Factors

The right on intellectual property is among crucial public policies and a key factor of both technology and Science in World.The intellectual property right plays a crucial role in technology transmission and development inside and outside of countries and it is a science and technology indicator.Patent area is one among the intellectual property right areas and China issued different and numerous patents during the eighteen years ago,and it is considered by WIPO as the first country issued the significant number of Patents to residents and non-residents people.The aim of this thesis is to examine empirically the factors of intellectual property right protection and its positive impacts in promoting China's economy.That empirical examination is done via three parts as follows:the first part is about to analyze the effects of the domestic granted patent protection on economic growth of China's autonomous regions,municipalities and provinces,the second part analyzes the factors which influence the foreign patents protection in China and evaluate effects of the granted foreign patent protection on economic growth of China as a developing country,and the third part analyzes effects of intellectual property right on the whole economic growth of China.This thesis is significant to developing of global countries especially ones with low income level of economy,in showing their decision and policy makers how the granted patents influence the economic growth,which enhances the learning of the relationship between intellectual property rights and foreign direct investment inflows,economic growth,openness through the investigation based on data from People's Republic of China.The researcher shows an example of Rwanda Patent application in order to show the readers that the least developed countries in world have a problem in intellectual property right field.It also helps the decision and policy makers to know how the intellectual property rights should help in economic growth improvement.It is very useful to investors,creators,and innovators in getting their roles in improving economy of their countries.It is also significant to the researcher as she gets experience in conducting empirical research analysis and gets a PhD degree and also to University and students in terms of being reference for future researches about Intellectual Property Rights and their impact on economic growth.China as an emerging country has objective of changing its economy from a manufacturing based economy to knowledge based economy.This transition is from"Made in China" to "Invented in China".This objective will be achieved through strength intellectual property protection rights.Another factor that influences the country's economy is the international trade.The literature has shown that the developing countries trade more with the developed countries.More studies demonstrated that the geographic distance influences international trade flows between different countries and it was investigated that the geographic distance between trading partners negatively affects trade volume values as well as foreign patents of country due to costs for transactions and information of both patenting and trading activities.The intellectual property right is a legal right granted by a government to promote creative and innovation output by making sure that an inventor obtains the benefits of his/her inventions or works.There are different kinds of intellectual property rights such as trade mark,copyright,patent,trade secrets,and geographical indications but this research work is considering only patent protection.The patents are internally and externally protected through Domestic and foreign/abroad patents protections respectively.Those patents are of three kinds such as utility model,design and invention patents.This research work analyzes the effects of those three granted patents applications on economic growth and also evaluates the impacts of geographic distance and other factors effecting foreign patents applications in China.The case study of China was chosen because it is considered to be the fastest growing country among the developing countries' economy and its patent application is very strong as it was ranked by Global Innovation Index.China was ranked twenty second country overall the world,and ranked as the first country which filed most number of IP in World in 2015 by WIPO.China is a country which issued domestically and no locally the most number of patents and patents distribution in China is unequal in provinces,autonomous regions and municipalities' cities of China,this study investigates the causes of that inequality of patents distributions and the roles of issuing many numbers of patents in economic development of China.In order to achieve the researcher's objectives,this thesis answers seven research questions with corresponding six hypothesizes.Gravity model and endogenous growth model are applied in analyzing data.With gravity model,we use the balanced panel data with fixed effects estimation in analyzing the roles of foreign patents and random effects model estimation in studying the influencing factors of more foreign patent numbers(considering two GDP of patent holders)on/in economic development of China.Those two panel data techniques are selected through Hausman test.With time series data set and endogenous growth model,through R-squared test,pooled OLS regression model or linear regression model is the best estimation in investigating the positive impacts of patents in provinces,cities and regions economic development;in studying the roles of foreign patent on economic the development of China(national level);and in analyzing patents effects in economy of Rwanda.Time series Prais-winsten regression model is used in investigating which foreign patent kind and which domestic patent kind is most important in China economic development.STATA is used as analysis tool.The main variables used in this dissertation are Gross Domestic Products of China,China's exports and imports values,the number of granted patents provided by China through State Intellectual Property Office of The People's Republic of China(SIPO)database,human capital,and Foreign Direct Investment inflows for 1998 to 2015 and distance between countries in analysis of non residents granted patents.This research work also considers China as its sample size as developing country and granted patents as the main intellectual property rights protection.The sources of used data mainly are from Chinese online database such as China bureau of statistics,and its state intellectual property rights office.This thesis results are divided into four regression models and they are concerned with the connection between domestic granted patents at national,and at regional and provincial levels,foreign granted patents,existing three sorts of domestic patents and economic expansion of China.The factors which influence the variation of China's autonomous regions,municipalities and provinces number of granted patents are autonomous regions,municipalities and provinces gross domestic products with export flows values.Export flows values define patent protection by possibility value of 1.8%with 23.4%of improvement in number of granted patents at the same time as Provinces,cities and region's GDP defines patent protection with nil percentage of possibility value with improvement percentage of 90 in the number of granted patents.China's regions economic development is determined by number of patents,the volume of exports,and volume of import flows and degree of freedom of economy of China.It is noted that patent protection is considered as a very important variable in development of economy of China's autonomous regions,municipalities and provinces since granted patent numbers define autonomous regions,municipalities and Provinces' GDP through the perfect significant statistical possibility value of nil percentage with increase of 7%.In China's autonomous regions,municipalities and Provinces,the number of patent protections is the main intellectual property right protection and it is very important due to its positive influence on the expansion of China's economy in autonomous regions,municipalities and Provinces.Among main factors which influence the attraction of the diverse investors or both policy makers and business people to come in China,there are the Gross of economic expansion or Domestic Products of China through the increase of 75 percent.Similar,Patent applicants' Gross domestic products influence granted patents number with 28 percent of enlarge.The third factor controls the innovation in China is China export flow values to granted patent holders with expansion percentage of 18%.Two categories of Patents such as domestic invention patents and utility model patents significantly control GDP of China,are considered by this thesis as the ones which very useful to expansion of economy of this country,also both foreign utility model and foreign design categories of patents are statistical significant to GDP of China.The utility model patents from both foreign and domestic categories in China's granted patents positively influences China's economic expansion,so it is very important patent protection in China.Therefore,the intellectual property right plays the crucial role in increasing or improving autonomous regions,municipality cities and Provinces economic progress.The rights of intellectual property affect positively the rapid expansion of China's economy.The association links granted patents and export flows value from provinces and regions of China is positive but the granted patents are not controlled by import flows value.The large number of foreign countries apply for Chinese patents are from global rich countries,geographic distance between China and Patents applicants does not have any negative or positive influences on of foreign granted patent numbers and also the improvement of China's economy increases the number of patents applicants from abroad.The intellectual property right is one factor which influences positively rapid increases of China's economic development.The relationship that exists between the foreign patents applicants' economic extension and number of patents granted to those applicants is in positive relationship.This dissertation compares roles of two main categories of patents such as domestic granted patents and foreign granted patents as results to check which ones are very vital in China's economy.It was realized that the number of foreign granted patents is the one which affects positively the economic growth of China.Among the three kinds of domestic patents,utility model patents,invention patents and design patents,the most important kinds are the domestic invention and utility model patents.For the three kinds of foreign patents case,two kinds are most crucial,which are foreign utility model and foreign design patents in China's economy.This thesis recommends least developing country economies with lower level of income to apply some policies with the purpose of improving their economic development,also to enforce rules and regulations of intellectual property right as it becomes its economic expansion factor.