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Patenting Activity - A Proxy of the Technology Gap? The Case of Korea and China. Intel Prop Rights

Junghee Han and Wangwoo

Technology is a key factor shaping economic growth. The technology gap between countries can be seen as a consequence of the disparity between patent protection levels and patenting activity. Technological progress depends on both domestic and foreign stocks of knowledge, the national infrastructure and the social institutional system. This paper discusses the extent to which the technology gap may be narrowed by strong levels of patent protection. The underlying premise to be assumed throughout is that patent rights have the power to influence the creation and diffusion of technology. As the importance of appropriability under many legal system increases, having a coherent strategy concerning intellectual property rights is crucial, both at the business and national levels. By considering data pertaining to patents, patenting activities, and social infrastructure, gathered from a number of sources, including IMD, World Bank, WIPO, and the Korean and Chinese national archives, this paper will focus on exploring the possibility that patents or patenting activities could serve as indicators forecasting the rate of adoption of new technologies within a country, whilst at the same time acknowledging some of their limitations in functioning as a proxy of the technology gap between countries.