Template-type: ReDIF-Paper 1.0 Author-Name: Gaetan de Rassenfosse Author-Workplace-Name: Ecole polytechnique federale de Lausanne Author-Homepage: http://www.gder.info Author-Name: Emilio Raiteri Author-Workplace-Name: Eindhoven University of Technology Title: Technology protectionism and the patent system: Evidence from China Abstract: Governments have strong incentives to allow their inventors to free ride on foreign technologies. They can achieve this result by discriminating against foreigners in the patent system--by refusing to grant foreigners a patent for their inventions. International patent law treaties forbid this practice, which may lower the global innovation incentives and may hurt international trade. Using data on half a million inventions submitted to the Chinese patent office, we find robust evidence of anti-foreign bias in the issuance of patents in 'strategic' technology areas. Foreigners are about 50 percent more likely to be refused a strategic patent than locals. Classification-JEL: O34, K11, F52 Keywords: industrial policy, national treatment principle, patent, technology protectionism, TRIPS Length: 69 pages Creation-Date: 2020-09 File-URL: https://cdm-repec.epfl.ch/iip-wpaper/WP11.pdf File-Format: application/pdf Handle: RePEc:iip:wpaper:11