Entrepreneurs in China are filing more blockchain patents than any nation on the planet, but just a fraction of these applications are increasingly being approved.
In accordance with Jianwei Wang, the deputy director at the Ministry of Industry and IT, Chinese blockchain patents take into account 84% of the worlds total.
Within an announcement subsequently reported by the South China Morning Post, Wang said that blockchain, accelerates integration with the economy, services for peoples livelihoods, smart cities and administrative services.
Wang didn’t specify over what time frame his 84% claim was measured, but his comments do align with a Statista report in Jan. which measured the distribution of global blockchain patents over 2021.
That’s only one portion of the story, however. One potential point of concern for Chinese growth is that just a fraction of these patents are sufficient to win final approval.
Further data shows that less of these approved patents continue to achieve success products than in competitor nations like the U.S. or South Korea.
An extremely confusing and frustrating system
Meanwhile, a Chinese court recently discovered that the ownership and trading of cryptocurrency is protected for legal reasons, so long as that cryptocurrency is traded as property rather than currency, because cryptocurrency can’t be currency, and for that reason it isnt.
Such mind-bending semantics claim that if the Chinese Communist Party (CCP) was to abolish singing in the torrential rain, Chinese innovators and lawmakers would eventually discover a way to dance between your raindrops.
Chinas burdensome and oppressive edicts have led to an extremely centralized environment where the country is far prior to the technology curve using areas such as for example its digital yuan, but where innovation is frustrated elsewhere.
State-backed projects like the CBDC-related Blockchain Service Network (BSN), continue steadily to prosper in Chinas domestic market.
The network now operates 28 blockchain frameworks, with 3,000 total apps developed by a 25,00 strong army of developers. Major industry players such as for example Emperor Group, HSBC, Lan Kwai Fong Group and Maxims Group are among its customers.
BSN now has plans to create on its success and be a global force, nonetheless it could find significant challenges to overseas adoption.
In other technology areas, such as for example 5G, governments, like the U.S. and the U.K., have banned Chinese technology. The perception is that state-backed Chinese companies are too closely linked with the CCP and for that reason pose a significant security threat.
China patents face significant challenges
While state-backed blockchain innovators face roadblocks from cautious overseas governments, the Chinese patent system also offers its issues to tackle. While only 19% of Chinese patent applications are approved, in the U.S. that figure is really a far higher 26%. In South Korea, patent approval is really a massive 45%.
This in accordance with a 2021 report by PatSnap which examined blockchain innovation and its own patents, and from the Chinese perspective, not absolutely all of its findings were for the nice. The report compared and contrasted patents from nations from all over the world including China, The U.S. and South Korea.
By Oct. 2021, PatSnap found there have been 55,000 global blockchain patents.
The report (auto translated from the Chinese) was subtly critical for the reason that it said, China happens to be the united states with the biggest amount of patent applications in this field, with about 33,000 pieces, accounting for approximately 63.2%, however the quality of patents still has room for development.
That quality issue is among major importance, also it tarnishes a few of the sheen from Chinas blockchain figures.
A great way where the quality of a patent could be measured is in the amount of citations it receives. Citations may indicate a specific patent or technology resulted in further useful innovation.
With Chinese innovators filing more patents than other people, it may be logical to assume that Chinese patents would likewise have more citations than other people, as each innovation builds upon another. Actually, exactly the opposite holds true.
In the group of probably the most successful patents in the market, measured as those that are cited over 100 times or even more, U.S. innovators are 13 times more lucrative than China.
As PatSnap continues on to say, it really is worth noting that 1.3% of the patents in the usa have already been cited a lot more than 100 times, indicating that the relevant technologies have become high and influential, and tend to be recognized by the. Only 0.1% of blockchain patents in China are cited a lot more than 100 times.
Overall the info claim that patents in the U.S. and South Korea, although much less voluminous, are of an improved overall quality.
In a nutshell, sometimes quality is really much better than quantity.
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