Development of Intellectual Property Service Industry in China

Transcription

1 Development of Intellectual Property Service Industry in China Peng Haoshu, Jia jia Shanghai Advanced Research Institute Chinese Academy of Science July 2013 Abstract IP service industry as one of the high-tech service industries is a newly cultivated industry in China. However, mechanism and methods to develop the industry are still to be learned. The research studies the industry by its concept, category, function and experiences of how developed countries had helped to develop IP service industry. Based on the status quo and problems observed in China IP service industry, we conducted survey to IP pilot companies that conduct R&D in Shanghai to understand their needs for IP services and compared IP information service business structure in China with those in Japan and the Europe. Finally we studied different models of IP service talents cultivation worldwide. Policies implications based upon the study were concluded. 1070

2 Content Summary Background and Research Problem Research Structure Methodology Literature Review Main body of the Research Conclusion and Policy Implications Summary IP service industry is attracting more attention and resources for being an important intermediary in the process of IP creation, administration, protection, application and trading. It has developed and been supported as a new high-tech industry in China by SIPO. The study is funded by SIPO to develop proper policy instruments to guide, encourage and support the development of IP service industry. 1071

3 Main research points: Summary Research background and Research question Literature review Main Challenges that Chinese IP service industry faces Policy environment of IP service industry Survey to 300 Shanghai IP experimental and model companies. 36 valid questionnaires Analysis of the survey Summary Conclusion & Policy Implication 1.Industrial standards should improve the professionalization, Internationalization & brand influence. 2.Needs for a transfer from Government-led to Market-driven 3. Talent cultivation is of key importance for IP service industry 4.The government should provide public platform, increase people s awareness and understanding of IP and supervision of IP service industry. 5.New market should be created by companies with the help of government 1072

4 Background and Research Questions 1073

5 Research Structure Theoretical Study=>Policy Analysis=>Case Study=>Policy Implication Definition of IP service Industry & Status quo Research Object Challenges observed in the development of IP service industry Issues& Challenges Development strategy/plans of IP service industry Policy Environment policy system for IP service industry Business structure of IP service companies in China and abroad Factors that drive the Expectation and requirement for IP service companies Development of Talent cultivation models around the world IP Service Industry Conclusion & Policy Implication 1074

6 Methodology Case Study Comparison Research Questionnaire Experts Interview Literature Review Springing up of IP service industry in China Strategic Policy system for IP development in China Definition, category, structure, function of IP service industry, and its relationship with KIBS (Knowledge Intensive Business Services) (SIPO, Guo Minsheng, Ye Changping, UN, ISIC Rev.3, WTO, GB/T , Lv Yuezhen, Wu Lili, Xie Shunxing) Status quo and challenges in the development of IP service industry (SIPO) Policy systems of IP service industry development of Japan, USA, Korea, Europ. 1075

7 What is IP service industry Definition of IP service industry IP service industry is comprised of knowledge intensive business services companies that help mainly the high-tech companies who aim to improve IP creation, protection, management and application that realize the value of IPRs by providing Annuities & Renewals services, IP Software, IP Strategy & Management Consulting services, IP Training services, IP Valuation services, IP Searching Services, IP Law Services and so on. (by the author) Challenges of IP service Industry in China Lag of development with relatively small scale, limited internationalization degree nd single structured service products; Unequally developed on the east and west in China Slow growth of High-end IP services like IP strategy consulting, IP pre warning High butt cost, and information asymmetry between IP service providers and buyer Barriers for high-tech SMEs to purchase IP services:price, Understanding Lack of high-qualified professionals 1076

8 International Policy Environment 1. In the Asia-Pacific region, intellectual property service is mainly dominated by the government, combined with the private. The main duty of the government is to provide public information platform, infrastructure and examination work, launching the guiding service plan and strategy. The private companies mainly focus on various value-added IP services. 2. The overall intellectual property rights consciousness is usually stronger in developed countries where the IP systems are more mature. And the service value is relatively high. Many high technology companies above certain scale usually have their own intellectual property teams, and also cooperate with the external intellectual property professionals or organizations. International Policy Environment 3. Countries with more advanced IP system generally pay more attention to university and technology transfer organizations, especially the investment on infrastructure resources and talents. Patent attorneys are enrolled as experts who can not only do the IP valuation but also the value transformation. The government would provide consulting services and professional training for them. In addition, the government will actively guide and matchmaking between these technology transfer offices and investors, trade associations and so on. 4. The number of IP service companies in the private sector is still quite small. Experienced patent attorneys and other types of IP talents are still to be nurtured and developed. 1077

9 Domestic Policy Environment By analyzing IP policies and regulations enacted by central and local government since June, 2008, we can see the trends as follow: 1. IP Training and other services providers need to cooperate to improve the understanding of IP by the whole society; 2. The need to improve service quality by the intermediary service providers; 3. Policies that facilitate patent transfer are helpful in developing IP commercialization, technology trading service and other forms of IP services Domestic Policy Environment 4. Polices are designed to improve public services to safeguard the legal IP rights 5. Provincial IP offices have policies that help to improve the quality of patents and to improve the local technology development. The policies indirectly helped to develop IP searching and analyzing services. 6. Some local IP offices have policies in establishing better public service platform as compliment to the private IP service sector. 1078

10 Business structure of IP service companies in China and abroad Comparative analysis of business structure: (1)Exhibitors on European IP Service World exhibition (34 companies) Business structure of IP service companies in China and abroad (2)Business structure of IP information services in Japan(34 companies) 1079

11 Business structure of IP service companies in China and abroad (3)First batch of National Cultivating IP Branded Service Pilot Companies (47) Most intellectual property service agencies (both domestic and foreign) engage in more than two business types. By contrast, IP services in Europe and Japan pay more attention to nurturing their core competence in certain areas. Companies in China incline to launch as many services as possible which leads to the lag of highly professional and in-depth services; The European IP services are oriented to the international market. Most companies provide services for customers across the Europe, America and Asia. Japanese and Chinese IP business focus more on local market; Customized service and B2B is the main business model in IP service industry. Customers include government, patent office, law firms, academic institutions and companies. Most IP service companies in the west have a relatively long history (usually around 5~30 years). Few are older than 100 years. But most Chinese IP service companies are younger than 10 years. Needs for IP Services by Companies A questionnaire survey was conducted to 300 Shanghai IP pilot companies, IP demonstrative companies and IP cultivating companies. 36 valid questionnaires were obtained. Respondents were mainly from machinery manufacturing, new materials, bio-medicine, transportation, automotive and other industries. The investigation focused on the basic information of IPR work and needs for IP services. number of invention patents owned by the interviewed companies Percentage of sales contributed by patented products e company has more than 900 invention patents. 1080

12 Needs for IP Services IP management challenges faced by interviewed companies Needs for IP Services Services needed by interviewed companies 1081

13 Needs for IP Services Channels to choose IP service providers Needs for IP Services Advices on improving competence by interviewed companies 1082

14 Lesson Learned IP service industry is a newly booming industry in China with a pretty weak base and competence in few aspects. There is intensive needs for IP services while the high-tech industries evolve. Many types of IP service businesses have a good potential to develop. Lacking of IP awareness remains the first challenge Policy environment has been improved but the legal environment remains a big challenge Talent is of key importance and there is no mature system of IP service talent cultivation Government is expected to provide more support, specially on the information infrastructure. alent Cultivation Model Around the Worl Universities Standard model of degree education. Usually focus on basic knowledge and advanced legal education and furthering knowledge, scholarship and research in the law governing the richly diverse fields of intellectual property Non Profitable Organizations Professional Education Organizations Eg. National Intellectual Property Law Institute, Global institute of Intellectual Property (India); Taiwan Intellectual Property Training Academy;IP Academy (SG These Organizations are usually led by international IP practitioners, to provide comprehensive knowledge about different types of IP related statutes, filing procedures, important case laws, infringement issues and strategies for protection. They also provide in-depth understanding of the subject of IP generation, protection, commercialization and management and to build employable skills in this area. The programs are usually designed for scientists, engineering, law graduates, PhDs, working professionals and corporate teams. The curriculum is usually designed and developed by Academicians, IP Attorney Patent Agents, and Domain Experts with the objective combine classroom training with real-world experience is one of the most valuable components of GIIP's patent & IP Program. 1083

15 Conclusion & Policy Implication. Industrial standards should improve the professionalization, Internationalization & brand influence. Intellectual property service companies in developed countries shows to be more specialized and customized. Yet China's IP services business structure has a wider coverage, more segments type, more localized service objects and less brand advantage. An Important task to restructure the business of IP service industry in China i to help develop the capacity to provide more professionalized services. Only with a solid business capacity could a company build up an influential brand. Needs for a transfer from Government-led to Market-driven It is more obvious that Asian governments play a more active role in developing IP servic industry. Though more advanced countries and areas like Japan, Korea, Singapore and Taiwan have a relatively comprehensive public service systems, their private sector isn t dynamic as those in the US and Europe. A sustainable industry will has to be born by the market itself. So policies should emphasis more on building up a Market-driven mechanis Conclusion & Policy Implication 3.Talent cultivation is of key importance for IP service industry A more practical, well-rounded international on job and continuing education system is needed to support the IP service industry. There is experiences and models from other countries. The difficult and important job is to integrate the wisdom of IP specialists from both state-supported and private organizations. 4.The government should provide public platform, increase people s awareness and understanding of IP and supervision of IP service industry. The job includes improving the IPR legal environment, helping to increase public awareness of IP protection, infrastructure construction( database integration and share, tool development and so on). The tax and industrial policy reform is also expected with a supervision of quality control which refers to industrial standards, qualification etc. 1084

16 Conclusion & Policy Implication 5.New market should be created by companies with the help of government As B2B is the main business model of IP service industry, a more associated industrial cooperation and exchange, and a more intensive contact and understanding of IP service industry by the customers are also of crucial importance when considering the policy framework. Government should play a bridging role by working harder on improving the awareness and understanding of IP by companies and other potential customers. Reference [1] Wang,M.Q.; Review of the development of intellectual property services Exploration and Free Views,PP.65-67,Oct [2] the number of Global international patent applications in 2011 hits a new high, retrieved 9/11/2012 world wide web, [3] The data show that: China's intellectual property service is on the rapid developing upstream channel Patent Statistics Briefing,vol.97,2010. [4] Guo,M.S.; The connotation, category and characteristics of intellectual property services,retrieved 9/11/2012 world wide web, [5] Xie,S.X.; Balance agency and consulting: a choice of healthy develop the intellectual property services china invention & patent,pp.62-65,april [6] Liu,C.P. and C.M.Ye, The Development Environment and Strategic Choice of Shanghai Intellectual Property Service-on the base of PEST-SWOT analysis Science & Technology and Economy,vol.24,PP.40-42,2011. [7] Zhang K.; The strategic significance of the development of intellectual property services in china Reformation & Strategy,PP.49-53,Aug

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