Simon Winston Brinsmead in his article “Intellectual Property Enforcement, Technology Transfer and Innovation in China’s Semiconductor Industry “
look into the observations of several commentators that analyse the
fact that China has enacted laws that give formal protection to
intellectual property rights but that, to date, it has struggled to
enforce these laws effectively. This is to some degree reflected in the
recent decision of the United States Government to institute
proceedings against China in the World Trade Organization regarding
intellectual property issues.

The paper evaluates China’s
current protection of the intellectual property embedded in
semiconductor chips, as well as the intellectual property of
semiconductor manufacturing processes. Having reached a view regarding
the effectiveness with which China’s intellectual property laws, as
they relate to its semiconductor industry, are currently being
enforced, this paper then assesses the implications of this situation
for technological progress by Chinese semiconductor firms.
The
author examines the link between the protection of innovations via an
intellectual property law regime, and the speed of technological
progress. In particular, two issues are examined. The first is whether
concerns by multinational firms about intellectual property enforcement
might dissuade them from transferring leading edge technology into
China. The second is whether enforcement concerns might be exerting a
negative effect on the capacity of Chinese semiconductor firms to
innovate.

The paper finally considers other government
policies which, in conjunction with better enforcement, should
encourage increased firm-level innovation.

To read the article click here.