Spatial distribution of patents in China

It is found that patents in China are highly clustered in two groups of provinces: one is the economically fast growing coastal provinces; and the other is inland provinces with large bases of populations, while the degree of spatial concentration of patents is declining over time. It is also revealed that export, together with 'technical infrastructure' including producer services and development of technology transfer market explains most of the provincial variation of patents. Furthermore, foreign ventures do not seem to be an important player in China's innovation system, while both state-owned and collective-owned industries contribute significantly to creations of new products in China. Finally, some commonly cited significant factors for innovations in western literature such as research and development (R&D) and agglomeration do not seem to explain the spatial distribution of patents in China. It is argued that such discrepancies between western 'common sense' and Chinese experience are largely attributed to China's inefficient innovation system, which has not been able to develop its potentiality.