China’s ancient reputation for inventions and innovation is finally catching up to reality. A report by McKinsey states that China’s total investment in R&D has risen until the second country worldwide after the United States. China, the report says, “has the potential to emerge as a driving force in innovation globally” [...] “we have evaluated how well Chinese companies commercialize new ideas and use them to raise market share and profits and to compete around the world”.
Last year China rose by six places in the Global Innovation Index, a ranking by the World Intellectual Property Organization, Cornell, and INSEAD. Meanwhile, a big jump in Chinese innovation pushed international patent filings to a new record last year.
According to Director General of the WIPO Francis Gurry the target for China by 2020 is to be a leading innovation power. China is now undergoing a transition from a labor-intensive model of "Made-in-China" to an innovation-driven model of "Created-in-China", he added. The spirit of innovation, in turn, is highlighted in hope of a more healthy and effective economy. Speaking of the progress in intellectual property protection in China, Gurry stressed the speed and influence China has achieved.
Thus, in this context of fast-growing development and investment protection of innovation through Intellectual Property rights will play an even more significant role. Companies are becoming more conscious about the importance of having their immaterial assets registered under patent, trademarks or design rights. They are aware this will add legal certainty and new business development opportunities to the holders of those rights, as well as provides the company with new accountable and valuable assets.
Therefore, to make R&D investments even more effective and secure and turn them into successful market products, a careful assessment of the Intellectual Property strategy to be followed may be crucial for the success and commercialization of the future developments and products.
This combination of an outstanding investments in innovation, talent and good protection practices of the results under IP rights will help Chinese and foreign companies established in China to consolidate as a global power in innovation for years to come.