Research On Patent Pledge Financing Model

In China, high-tech SMEs play an increasingly significant roles in economic transformation and development. Gradually, it becomes an important force in technological innovation. However, its development is still hampered by many constraints such as:small asset size, non-standardized financial statement and difficulties in financing. New financial tools like patent-collateralized loans have been innovated to solve the above problems, providing those SMEs a new way to raise external assets.Back in 2008, China began to launch patent-collateralized loans in 29 cities. As of 2013, the total amount of patent-collateralized loans has reached 63.8 billion RMB nationwide. In 2010, Shanghai Pudong district become one of the very first region to distribute patent-collateralized loans. In 2013, Shanghai achieved the balance of 1.02 billion RMB in patent-collateralized loans. After years of exploration, two patent-collateralized loans have been formed in Shanghai:the direct collateralized loans and indirect collateralized loans. And more than 400 SMEs have benefited from financing through those loans. However, those patent-collateralized loans highly depend on the endorsement of the Governments. In Shanghai, more than 70% of patent-collateralized loans are backed by the government.Part Ⅰ, introduction. I introduce the research background, purpose, methodologies and innovations.Part Ⅱ, literature review. I conduct a literature review on the patterns of patent-collateralized loans, risk management, impact factors and pattern evaluations. Based on a summary of features of the patent-collateralized loans, I listed important influential factors in such financing method and briefly comment on it.Part Ⅲ, theory of pattern-based financing. I analyze the theoretical foundation of patent-collateralized loans, based on the theory of knowledge economy, pecking order theory and information asymmetry. Then I propose the feasibility and operability of patent-collateralized loans.Part Ⅳ, Analysis of patent-collateralized loans in Shanghai. Summarizing the size of patent-collateralized loans, and its development in different districts. Conduct a thorough study on the "direct collateral financing" and the "indirect collateral financing":analyzing the operation methods, service objection, and risk sharing mechanism. I also comparing those two different financing methods from the perspective of their features and shortages.Part V. Empirical Study. The empirical study is conducted based on the registration information on pattern-collateralization loans from State Intellectual Property Office, and the basic industrial data from Shanghai Industrial and Commercial Bureau. I first sorted out the related information on 123 contracts of pattern-collateralization loans, then using Logistic model to analysis influential factors for two different financing tools. The results uncovers important factors which has a significant influence on pattern-collateralization loans:the number of patterns used in collateral, registered capital for firms need financing and the policy support from governments in where firms are registered.To summarize, I draw four conclusions:1) the development of pattern collateralization loans is largely influenced by the policy support from government in Shanghai. Firm’s own patter has limited effect on its development.2) In policy design, the indirect pattern-collateralization loans are mainly focus serving the start-up SMEs. However, from empirical study, such supporting policies do not have any significant effect on the development of those start-ups.3) The development of pattern collateralization loans have been hindered by the relative supporting service.4) Participation from different parties have been limited by the current underlying risk-sharing mechanism behind the pattern collateralization loans.Part VI. Policy implication. Based on previous analysis, I propose several reforms in supporting policies.1) Government functions should be transformed from "government-led" to "market-led", using market-oriented method to encourage banks and SMEs to finance via pattern collateralization loans.2) The government should pay more attention on the development of the environment of pattern collateralization loans, perfecting the pattern evaluation system and the pattern market. Also, they should establish a nationwide guarantee system and insurance system.3) Strengthen the policy support for start-up SMEs, via the establishment of multi-level pattern-collateralization systems.4) Increase chances for SMEs in successful financing by guiding them to optimize lending strategies according to their own conditions.