China Leads Global Patent Competition but Falls Short on 'Innovation'

Experts Point Out Lack of Innovation in Key Areas Like AI
"We Must Attract Global Talent and Cooperate with Other Countries"

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Although China is quantitatively leading the global patent competition, it is still considered insufficient in the fields of innovative technology and value-added creation due to factors such as a shortage of talent.

On the 24th, Hong Kong's South China Morning Post (SCMP), citing multiple expert analyses, reported, "China's patent-intensive industries produce more intellectual property than any other country in the world, but their contribution to the economy still lags behind that of the United States and Europe."

[Image source=Yonhap News]

According to the China National Intellectual Property Administration, as of 2021, the value added by China's patent-intensive industries was 14.3 trillion yuan (approximately 2601.17 trillion won), an increase of 17.9% compared to the previous year. The share of these industries in China's gross domestic product (GDP) is 12.4%, and their share in employment is about 6.5%. China aims to increase its GDP contribution to 13% by 2025.

In the United States and the European Union (EU), the share of patent-intensive industries in GDP and employment is even higher. In the U.S., it accounts for 24% of GDP and 13% of employment, about twice the level of China. The EU also accounts for 17.4% of GDP and 11% of employment.

What is important, SCMP points out, is not the 'quantitative' number of patents but 'innovation.' According to the World Intellectual Property Organization (WIPO), China filed 1.59 million patent applications in 2021, more than twice the number filed by the U.S. during the same period.

Li Qing, Executive Director of the Global Talent Institute, explained, "Progress has been made in both quantity and quality, but there is relatively little original innovation that can emerge from basic research or advanced technology," adding, "China is competitive in relatively basic application developments such as image and voice recognition, but the gap in artificial intelligence (AI) and semiconductor fields requires significant effort."

The biggest factor behind the sluggish innovation is identified as the 'talent' issue. Wang Huiyao, Chairman of the Center for China and Globalization, stated, "China lacks talent, especially high-level global talent," and emphasized, "It is necessary to attract more talent and cooperate with other countries." Chairman Wang further stressed, "To compete with the U.S. or the EU in terms of innovation, it is necessary to look to talents of different ethnicities from around the world."