Indigenous Innovation in China: Intellectual Property and Market Access Implications for International Firms

Mei Y. Gechlik, Visiting Fellow,The Hoover Institution
Alex Zhang, Partner, King & Wood
Henry Rowen, Senior Fellow, The Hoover Institution

According to a survey by The American Chamber of Commerce in the People's Republic of China (AmCham-China), 37 percent of high-tech and IT companies who have business in China report a losing revenue as a result of a broad range of preferential indigenous innovation policies recently coming into effect. “Indigenous Innovation” is a set of policies aiming to promote China’s domestic technological innovation and assist China’s transition from a labor based to an innovation-driven economy. In November 2009, the Chinese government promulgated specific policies and programs around “indigenous innovation” to give economic benefits to companies and products that fell under the category. However, it immediately raised a suspicion of protectionism. Are these recent developments in China’s industrial policy truly disadvantaging foreign firms operating in China? How might this policy trend impact the decisions of US companies to bring technology to China? What legislative and regulatory obstacles might be impeding technological transfer to China? Finally, what are points of collaboration on which the Chinese government and foreign firms can work together, both to ensure a friendly business environment and to help China move towards its goal of establishing an truly innovative economy?

Friday, January 01, 2010 | 3:00 pm — 5:00 pm
Philippines Conference Room, Encina Hall, 3rd Floor