A Road Lead to Prosperity for the Future 

——The Theory and Practices of Intellectual Property Economy & Its Competitive Advantages

Author  Guo Minsheng

The 21^st century is marked with a new trend towards new technological innovation, cross-cultural communication, globalization of economy, economization of knowledge and internationalized economic and commercial rules, which presents new challenges to the economic and social development of China and her enterprises’ participation in the domestic and foreign markets. This book theoretically analyzes the intellectual property based economy(or intellectual property-rights based economy，also intellectual property economy or simplified IPE), intellectual property-rights advantages (IPA) and IPR industrial advantages, and explores their formation mechanisms. On the basis of theoretical and empirical research, some conclusions are drawn as the following:

Firstly, a new concept system of IPE, which is a new comprehensive economic form, is raised and defined. It is clearly suggested that property right is the only criterion to divide economic patterns of humankind and IPE is a brand new economic pattern; it is proposed that IPE shall be understood from five perspectives: namely, factors, rules, patterns, efficiencies and results; differences and similarities between IPE and traditional economy and knowledge-based economy are analyzed; connotation, features, attributes, classifications and functions of IPE are defined; value chain model and three strategic links of IPE are figured out; basic theoretical problems about objects, scope, purposes, elements and functions in the study of IPE are suggested.   

Secondly, a double-engine competition mechanism on the Innovation & Intellectual Property Advantages (DEMCIIPA) model is suggested together with its motivating, stimulating, restraining and competitive mechanisms. IPA theory is enriched by defining IPA’s essence, connotation, formation of four advantages and five main features; a DEMCIIPA model composed of two power systems, namely power engine and external impetus systems is designed; power mechanism and competitive mechanism formed by interactions and reorganization of the two power engines, three external impetuses and competitors are discussed; by means of game analysis over public and government, limiting conditions for the stimulating and restricting mechanisms of IPE and its competitive advantages are suggested.

Thirdly, the book summarizes and analyzes industrial composition, pattern and competitive rules of IPE. The six industrial components of IPE and main elements of IPR industries and their relations are analyzed; a comprehensive analysis is particularly conducted over the technical structure, organizational structure, industrial layout, management features and main competitive rules of IPR industries.

Fourthly, the book puts forward a set of business patterns of IPR industries. According to value-added loop in the value chain, the patterns are categorized into 5 patterns and 19 sub-patterns as the following: strategic pattern (sub-divided into strategic re-organization, strategic offence, strategic defense and strategic balancing), integration and efficiency-improving pattern (sub-divided into central concentration, bush rule, small-devours-big and snowball-rolling）,innovation and value-addition pattern (sub-divided into advantage-occupation, imitation and innovation, and integrated innovation), operating value-addition pattern (sub-divided into monopoly value-addition, platform service value-addition, marketing value-addition, multiplier amplification and integrated value-addition), and protection and value-addition pattern (sub-divided into “the strongest is the king’, comprehensive tactics and adaptability).         

Fifthly, basic measures to cultivate IPR culture are proposed. The connotation, category and elements and their relations are defined clearly by means of analysis over cultural fundamentals of innovative countries, such as attitude towards wealth, values, economic systems, laws, rules, regulations and concepts about morality. Basic measures to cultivate IPR culture are proposed with consideration to current conditions of IPR culture in our country.  

Sixthly, strategies are suggested with consideration to different identities. Strategies and means are proposed on the basis of our country to develop IPE and foster IPA, that is, on the basis of fostering and re-producing IPR culture, strengthen innovation so as to intellectualize innovative achievements, systemize agency system, industrialize IPR and create competitive advantages in the market; connotations of leading, following and surviving enterprises are defined; common challenges for the three kinds of enterprises are proposed, namely, adjustment of development strategy, re-organization of competitive pattern and re-generation of enterprise culture; corresponding strategies are suggested with consideration to demands of the three kinds of enterprises and industrial upgrading. 

Seventhly, IPE and IPA Comprehensive Appraisal Index (IPCAI) is designed and tested. IPCAI is designed to be composed of 65 factors of 3 layers with full consideration to national, regional and enterprise competitors. The simplified version of the index has been tried out in Henan Province and desirable results have been obtained. Initial investment and empirical research about 150 sample enterprises in Henan Province has basically proved main ideas and conclusions proposed in this book.

Finally, a summary is made about contents of the book, and predications and expectations are presented about changes of IPR system in the future.

Key Words: Intellectual Property Economy     Intellectual Property Advantages

            IPR Industry         IPR Culture      Business Pattern  

Competitive Mechanism    Competition Model      Appraisal Index