Intellectual Property, Foreign Direct Investment and the China Exception


Policymakers in both the developed and less developed worlds have increasingly considered intellectual property protection as a major means to attract foreign direct investment (Yu, 2007, pp. 892–901). However, stronger intellectual property protection is not always needed to attract such investment. In the case of China, foreign investors were not attracted by the strong intellectual property protection the country offers. Rather, they entered the Chinese market because of the drastically lower production costs, the country’s enormous market, its inefficient economic system and the preferential treatment of foreign investors. Thus, some commentators consider China a paradigmatic case for showing how rapid economic development can take place despite limited intellectual property protection (Abbott, 2005, p. 81; Chow, 2007, p. 199).

Cite this paper

@inproceedings{Yu2007IntellectualPF, title={Intellectual Property, Foreign Direct Investment and the China Exception}, author={Peter K. N. Yu and Daniel J. Gervais}, year={2007} }