Empirical Research On The Relationship Between China’s Patent And Economic Growth

In April 1,1985,the patent law of the People’s Republic of China was promulgated and implemented by the standing committee of the National People’s Congress,which representing the establishment of China’s patent system.The establishment of China’s patent system is not only an inevitable requirement of China’s reform and opening up process but also the necessary foundation for the establishment of a market economy system.The promulgation of the patent law provides the necessary protection and stimulation for the whole society.The number of domestic patent applications and authorizations increase rapidly,coming with a lot of problems,such as the rapid increase of patent applications is accompanied by low patent quality,the low rate of patent conversion has persisted for a long time.The relationship between China’s patent and economic growth has also been controversial in the academic world.This is the starting point for this paper.This paper mainly uses the panel data econometric method to quantitatively study to know whether or not China’s patent has contribution to economic growth,if there is,how to measure the size of this function,and what are the dynamic changes in the role of different types of patent for economic growth and many other practical problems.Firstly,this paper tries to make a descriptive statistical analysis which is carried out using the panel data of 31 provinces(autonomous regions and municipalities directly under the central government)in 1996-2015,makes an analysis of China’s domestic patent licensing rate,analyzes the amount and the growth rate of patent application and authorization in all regions,and gets a preliminary assessment of relationship between China’s domestic patent and economic growth.Secondly,this paper studys empirically the relationship between domestic patent and economic growth in China based on patent application quantity,authorization quantity and macroeconomic data.This paper makes an empirical study by constructing a panel data model,and mainly uses R statistical software for data processing.Besides,this paper uses the unit root test,the hausman test and the Granger causality test method.By using different types of panel data models,this paper estimates whether or not China’s patent have contributed to economic growth and draws a conclusion.Because the three types of patent,which include the invention patent,the utility patent and the design patent,have significantly changed the role of economic growth in different periods,the paper divides the interval into two phases: 1996-2005,2006-2015.Then this paper makes a study of above process separately.Finally,this paper makes analysis comprehensively to the empirical results combining the macroeconomic background of the time.The conclusion is,the results of the granger causality test show that there is a relationship of both influences between China’s patent output and economic growth in 1996-2005.The regression result of the panel data shows that the estimate value of the patent is 0.132,which means that every 1 percent increase in patent output will boost GDP by about 0.132 percent.After further division of the time period,the effect of three patent types on economic growth has been studied.The empirical study finds that in 1996-2005,innovation outputs have made positive effect on the economic growth in the form of utility model patent.The invention patent,which have high technical content and original creativity,have not played a significant role in economic growth.In 2006-2015,the invention patent have significantly improved the positive effect on economic growth,obviously superior to the low-tech,imitative strongly utility model patent and design patent.The results of the study show that the function form of China’s patent and economic growth has changed dramatically in 1996-2015.The original technology,represented by the invention patent,plays an essential role in the transformation of economic growth in China.