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Analysis on Barriers to Market Entry Based on Patent Institution

Author: CaiLing
Tutor: LuXinBo
School: Zhejiang University of Finance
Course: Industrial Economics
Keywords: Market entry barriers Monopoly Patent system Panel model
CLC: F224
Type: Master's thesis
Year: 2008
Downloads: 191
Quote: 0
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Abstract

All along, the patent system is to ensure that proprietary knowledge monopoly private rewards and social returns consistent with and promote innovation. But the patent system itself, there are also disadvantages such proprietary monopoly, applied for or obtained knowledge (technology) is the incumbent of the patent protection period has exclusive rights and exclusive rights can be potential competitors out of the industry outside or The relative potential competitors to obtain a higher price or at a lower cost of production, and the monopoly profits. The existence of such barriers to entry will affect the degree of competition in the market, thereby affecting the effective operation of the market. Stimulate technological innovation in China vigorously promote independent innovation strategy of strengthening the patent system to encourage the role of technology diffusion unanimously approved practice and theoretical research tend to ignore the system itself to ensure the role of the innovation market monopoly realized, will be the formation of barriers to entry, innovation capability will eventually reduce harm industry innovation capability and industrial structure adjustment. Therefore, in-depth understanding of the market barriers to entry in the patent system and its impact on our industry market structure is a very important theoretical issues, and also the national level, system improvements and enterprise level decision-making challenges must face the reality. Market entry barriers in research under the patent system are mainly two difficulties, different from the other features of the structural barriers to entry and strategic barriers institutional constraints of the patent system, market entry barriers, and thus lead to its mode of action differences and complexity, and thus the current lack of systematic theoretical analysis; Second, after considering the factors of the system, how to actually measure the strength and scope of the barriers to entry in our industry. This is the Chinese government to improve the patent system and the patent strategy of companies have chosen to solve practical problems. Therefore, from the theory of the barriers to entry and the patent system combing start, market entry barriers in the patent system is understood as a manufacturer to take advantage of the government legal system to build barriers to the market phenomenon. This phenomenon has the strong exclusive, openness and timeliness three characteristics of the formation of a monopoly can be summarized as a short-term open dynamic monopoly. And exclude potential competitors eventually manifested through three forms the standard obstacles in its unique form. It can be seen, market entry barriers under the patent system is neither fully equivalent to the structural barriers to entry, is not exactly the same as the strategic barriers to entry. On the surface, it seems, and the permit system and the system caused by structural barriers close, but its role in the mechanism of analysis has become more a strategic entry barriers. Market entry barriers to the particularity of the patent system, the empirical part of the first phased measured the height of our industry barriers to entry and found that most of the industry is in a fully competitive state, there are some industries over into some industries belong to the government control industry. Then, all industries are affected by the impact of the patent system, fully competitive and over to enter the industry, market entry barriers in the patent system can be removed from the data at the same time show? Exclude government control industry data to further build the 29 industries 9 panel data model, the following main conclusions: (1) market entry barriers under the patent system is there, and the patent granted to the barriers caused by strong barriers caused by patent applications; (2) the patent application period The public system to promote competition within the industry. When the patent application within the industry is concentrated in the area of ??utility model and design, the industry entry barriers will reduce the number of enterprises to enter the increase in patent applications after; (3) There are excessive enter the industry not by the patent system imperfections caused by . Countermeasures and suggestions section, starting from two points of view, first of all, in terms of public policy, certainly China's patent system to run well on the basis of, try starting from the characteristics of the industry with our industry, the status quo is proposed to improve the patent system, the development of anti-international patent monopoly the recommendations of the national patent strategy, prosperity patent transactions market to improve China's patent system of operation. Enterprises to attach importance to patent strategy, and actively participate in international patent competition, and the industrial technology so as to enhance the ability to promote innovation capability of the industry as a whole in terms of corporate behavior.

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