Patent Protection Economic Development and International Trade of

Patent Protection, Economic Development and International Trade of Intellectual Property Yuting Deng School of Intellectual Property, Nanjing University of Science and Technology, Nanjing, China dengyuting 220@163. com Abstract The global governance system of intellectual property has changed significantly since the signing of TRIPS Agreement. This paper utilizes the comprehensive evaluation method, introduces and constructs patent system index and designs the weights by factor analysis, measures the patent protection strength of 52 countries from 2006 to 2017. In addition, the relationships among national income level, international trade of intellectual property, basic scientific research capacity and the national patent protection strength are verified by panel data models. The results show national income level, intellectual property international trade and basic scientific research capacity are positively correlated with the strength of patent protection in a country. Text Intellectual property system is based on business and plays an important role of global trade. In the second half of 19 th century, with the continuous development of international trade and the increased inequality of international economy, intellectual property negotiation had appeared to the central position of all parties in cosmopolitan governance. As a type of international public affairs, the structure of global intellectual property governance is deeply embedded into the change of national development, and it expresses the contrast of national political, economic, and scientific strengths in the modern world system. In the early 1990 s, scholars attempted to measure the strength of patent protection on an international scale. Ropp and Rozek used the report in regard to the minimum standards for the protection and enforcement of Patent Law released by the American Chamber of Commerce to measure the legislative strength of patent law in 159 countries, and 87 countries which were actually measured were classified and quantified according to the protection intensity from low to high as 0 -5[1]. Mansfield estimated the strength of patent protection in 14 developing countries by issuing questionnaires to professional managers and patent lawyers in developed countries, such as the United States and Germany[2]. After TRIPS agreement was concluded, some scholars integrated the content of the agreement into the strength evaluation of international patent protection. Ginrate and Park measured the legislative patent protection strength of 110 economies from five aspects: the type of patent subject matter, the number of international treaties signed, the restriction of rights, the enforcement mechanism, and the duration of protection[3]. This model (GP index) has become a classic tool for measuring patent protection strength since then. Using the arithmetic averages of the secondary indicators in 52 countries from 2006 to 2017 as initial data, the correlation coefficient matrix of the secondary indicators is calculated through Eviews 9. 0. The result indicates that secondary indicators have strong correlations and meet the conditions of factor analysis, which provides an objective method to measure the weights of each indicator in two levels. In Table Ⅰ. The factor loadings of indicators exceed 0. 7 at all levels, indicating that the weighted indicators can effectively interpret patent system index. In addition, the goodness-of-fit information on estimated weights shows, proportion values of Law Enforcement, R & D capability and the Public Awareness of Patent Protection are 0. 9953, 0. 9951 and 0. 9782 respectively, which indicates the weights obtained by factor analysis are ideally accurate. Empirical research shows the level of national income has a positive correlation with the strength of its patent protection[3]. The reason is that countries with lower national incomes generally have lower level of science and technology and lack of core technology to support their industries. Absorbing advanced technologies from developed countries through latecomer behaviors, such as imitation and reverse engineering, lower income countries are feasible to improve domestic science and technology level effectively in short time and cultivate domestic core competitiveness. Therefore, the hypothesis 1 is raised: The export of high-tech products expresses the circumstances that enterprises from exporting country give importing country credit on their strength of patent protection. Furthermore, if manufacturers of exporting country transfer their production lines to import countries, they will expect the host country to implement stricter patent protection in case of patent infringement. The hypothesis 2 is raised: CONCLUSION From perspective of the patent system, this paper provides a methodology on measuring the strength of patent protection in 52 countries around the world, and verifies the relationship between national income level, international trade of intellectual property, and the realistic patent protection strength. The export of high-technology products, the receipts and payments of intellectual property royalties have significant positive correlations with the actual patent protection strength of a country.