The impact of small world on patent productivity in China

Based on the patent co-authorship data from State Intellectual Property Office of China, this paper examines the evolution of small world network and its impact on patent productivity in China. Compared with the western countries, the small-world phenomenon of the innovation network in China is becoming more obvious. Empirical result shows that the small world network may only have significant impact on patent productivity in those patent productive provinces, e.g., Beijing and Guangdong that filed larger number of patents. Although the collaborations in the network are more endurable in China than ones in western countries, it may be less efficient in transmitting knowledge because of large ratio of administration oriented state owned enterprises (SOEs). With larger ratio of SOEs, the small world network has longer path length and knowledge thus flows less efficiently in Beijing than in Guangdong. The policy implication of the findings lies in that the Chinese government should let the market rather than the administration determine the collaboration of technological innovation, in order to encourage innovation and establish an effective small world network for speeding up flow of knowledge among different type of firms during the innovative process.