China patent-intensive industry produces more intellectual property rights than any other country in the world, but it still lacks original innovation compared to the U.S. and Europe, Hong Kong’s South China Morning Post (SCMP) reported on the 25th.
According to China’s National Intellectual Property Agency (CNIPA), the added value of China patent-intensive industry in 2021 was 14.3 trillion yuan (about 2,600 trillion won), up 17.9% from the previous year, which is 12.4% of China’s GDP. The patent-intensive industry accounts for 6.5 percent of the total employment.
“Patent-intensive industries are important areas for stable growth and employment,” a senior official from the National Intellectual Property Office said. “China’s development potential is still great compared to the U.S. and the European Union.”
Citing last year’s reports from the U.S. and the EU, he explained that the added value of the U.S. patent-intensive industry is 24% of GDP and 13% of employment, which is twice that of China.
It added that patent-intensive industries in the EU account for 17.4% of GDP and 11% of employment.
China has set a goal to increase the contribution of patent-intensive industries to GDP by 13% by 2025.
According to the World Intellectual Property Organization (WIPO), China applied for 1.59 million patents in 2021, more than double that of the United States.
Equipment manufacturing and communications such as aviation, spacecraft, automobiles, and railways are mainly supported by patents.
However, Li Qing, director of the Beijing Global Human Resources Research Institute, pointed out to SCMP, “Although we have already made quantitative and qualitative progress, there are relatively few original innovations that can come from basic research or advanced technology.”
“China is competitive in developing applications that meet relatively basic needs such as image and voice recognition,” he said. “But the gap with other major economies in artificial intelligence (AI) and semiconductors requires many breakthroughs in basic research.”
Chinese telecommunications equipment giant Huawei recorded 7,630 invention patents, the largest number in its country in 2021.
However, the SCMP explained that Huawei is in trouble due to U.S. control of semiconductor exports, adding urgency to China’s task of strengthening innovation and talent.
“China lacks a particularly high level of global talent,” said Wang Hui-yao, chairman of the China Globalization Research Institute. “In terms of innovation, we need talent from other races and other parts of the world, not just Chinese who are returning to compete with major economies like the U.S. and the EU.
