China Journey - In Preparation (1)

Later this month, I am taking my family on an extended trip to China. I will be lecturing at universities, researching for my next articles on intellectual property development and trying to learn first hand about some of the most important influences coming to shape 21st Century economics and politics.

As I prepare for the trip, I recently came across a new study by the Boston Consulting Group based upon its analytical model, the Five Fazes of Intellectual Property., BCG has created an excellent summary publicly avaliable on China. (Because the report is so interesting, I'm printing the entire url: http://www.bcg.com/impact_expertise/publications/files/Beyond_Great_Wall_Jan2007.pdf)

I learned of the article from the monthly newsletter from the WIPO small enterprise division. WIPO provides a tremendous resource for entrepreneurs around the world, including the U.S.

The Five Phases identified by BCG include
1. Driving Growth through Exports
2. Climbing the Value Ladder
3. Paying the Price (Corporate producers become targets because their weak IP protection allows for take over of their business)
4. Getting Serious About Intellectual Property
5. Profitting from Intellectual Property

These five phases identified by BCG explain both the pressures that remain on China's growth and the optimal strategies to overcome those challenges. Not surprisingly, the overarching recommendation is to have the intellectual property protections begin to catch up to the trade. The model fits well for the experience of Japan and South Korea, so there is much to be said for it.

The model may not entirely take the role of a protectionist government into account. Patent protection provides a company strong protection for exclusive control of its products. Within China -- a tremendous market -- government regulation and tradition may play a significant role in providing this exclusivity as well. Outside the country, of course, only internationally recognized intellectual property can provide such tools.

Much has been written about China. I will be sharing the best of what I find and add a little from what I learn. If you have suggestions, please share them with me at jgaron@hamline.edu.