India's Patent Path Must Diverge From China's To Spur Innovation

The eternal tussle between quantity and quality has been a subject of debate in various fields, including philosophy, art and innovation.

This dichotomy is particularly relevant in the context of innovation, especially when considering the role of patents. Patents are commonly seen as a measure of a country’s innovative capacity. However, the sheer number of patents filed does not necessarily reflect true innovation. The number of filed patents and approvals by a country is not an end in itself, but rather a means to an end. The ultimate goal is for the nation to foster a culture of innovation.

China has led the world in the count of patent filings since 2011. According to the World Intellectual Property Indicators (WIPO) 2023 report, China’s global share of patents has almost doubled, from 24.4% in 2011 to 46.6% in 2021. Further, the highest numbers of patents in force have also been recorded in China. There are two reasons for such a spike in its number of patents.

First, MNCs and even small international businesses are now patenting in China as a bulwark against a tide of counterfeits, with China noted as the source of 80% of seized counterfeit goods globally, according to OECD data. The aim is to halt the production of fakes within China.

Second, China’s push for innovation led to a flood of patents, but quantity overshadowed quality, leading to an abundance of ‘junk patents’ with scant innovation. Despite hefty investments in research and development (R&D), meaningful innovation has lagged, with experts pointing out that large government subsidies have resulted in a glut of low-value patents.