ARCIALA Series on Intellectual Assets and Law in Asia Innovation, Economic Development, and Intellectual Property in India and China Kung-Chung Liu Uday S. Racherla Editors Comparing Six Economic Sectors ARCIALA Series on Intellectual Assets and Law in Asia Series Editor Kung-Chung Liu, School of Law, Singapore Management University, Singapore, Singapore This series, sponsored by the Applied Research Centre for Intellectual Assets and the Law in Asia (ARCIALA) focuses on intellectual assets and law in Asia, and also addresses international intellectual property (IP) norms that would impact Asian development. IP study thus far, globally speaking, is focused on the Western hemisphere as it continuously generates and disseminates new paradigms and legal norms to the rest of the world. Asia has been an importer and follower of those IP standards. The limited study of the Asian IP landscape in English is more on a national level, and seldom on a pan-Asia level which is the approach taken by this series. Asia as a growth engine of the world is now transitioning to a higher economic development level and will have a much more significant effect on international IP law moving forward. Key themes covered in the series include: innovation, economic growth and IP; the interplay between IP law and competition law; the intersection between IP and trade talks; patent; copyright; trademark; and individual country studies. More information about this series at http://www.springer.com/series/15958 Kung-Chung Liu • Uday S. Racherla Editors Innovation, Economic Development, and Intellectual Property in India and China Comparing Six Economic Sectors Editors Kung-Chung Liu Renmin University of China Beijing, China Singapore Management University Singapore, Singapore Uday S. Racherla Indian Institute of Technology Kanpur Kanpur, India ISSN 2523-708X ISSN 2523-7098 (electronic) ARCIALA Series on Intellectual Assets and Law in Asia ISBN 978-981-13-8101-0 ISBN 978-981-13-8102-7 (eBook) https://doi.org/10.1007/978-981-13-8102-7 © The Editor(s) (if applicable) and The Author(s) 2019. This book is an open access publication. Open Access This book is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made. The images or other third party material in this book are included in the book’s Creative Commons license, unless indicated otherwise in a credit line to the material. 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This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore v Contents Introduction, Summary, and Some Inferences . . . . . . . . . . . . . . . . . . . . . . . . 1 Kung-Chung Liu and Uday S. Racherla Part I IP Codification and Innovation Governance On the necessity of incorporating IP Laws into the Civil Law of China and How . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Chuntian Liu and Kung-Chung Liu Constitutional Governance in India and China and Its Impact on National Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Wenjuan Zhang Part II IT Industry Information Technology Industry in China . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Xiangdong Chen, Ruixi Li, Miaochen Lv, Dian Chen, and Lingzi Yang India’s Information Technology Industry: A Tale of Two Halves . . . . . . . . . 93 Biswajit Dhar and Reji K. Joseph Part III Film Industry Chinese Film Industry Under the Lens of Copyright, Policy, and Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Lizhou Wei and Yanbing Li Reminiscing About the Golden Age: An Analysis of Efforts to Revive the Hong Kong Film Industry Through the Lens of Copyright Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Yahong Li, Weijie Huang, and Celine Melanie A. Dee Contemporary Challenges of Online Copyright Enforcement in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Arpan Banerjee vi Continued Economic Benefit to the Author: Royalties in the Indian Film Industry – Historical Development, Current Status, and Practical Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Renuka Medury Part IV Pharmaceutical Industry Pharmaceutical Industry in China: Policy, Market and IP . . . . . . . . . . . . . 215 Xiangdong Chen, Shaofang Xue, Miaochen Lv, and Ruolan Wang Indian Patent Law and Its Impact on the Pharmaceutical Industry: What Can China Learn from India? . . . . . . . . . . . . . . . . . . . . . . . 251 Juan He Historical Evolution of India’s Patent Regime and Its Impact on Innovation in the Indian Pharmaceutical Industry . . . . . . . . . . . . . . . . . 271 Uday S. Racherla The Challenges, Opportunities and Performance of the Indian Pharmaceutical Industry Post-TRIPS . . . . . . . . . . . . . . . . . . . 299 Biswajit Dhar and Reji K. Joseph Part V Plant Varieties and Food Security Protecting New Plant Varieties in China and Its Major Problems . . . . . . . . 327 Yangkun Hou Genetically Modified Foods in China: Regulation, Deregulation, or Governance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 Juanjuan Sun Genetically Modified Plants: The IP and Regulatory Concerns in India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367 Malathi Lakshmikumaran Rooting for Sustainable Agriculture and Food Security Through Improved Regulatory Governance in India . . . . . . . . . . . . . . . . . . 387 Sunita Tripathy Part VI Automobile Industry Challenges in Reshaping the Sectoral Innovation System of the Chinese Automobile Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415 Kaidong Feng and Junran Li The Growth of the Indian Automobile Industry: Analysis of the Roles of Government Policy and Other Enabling Factors . . . . . . . . . . . . . . . . . . . 439 Smita Miglani Contents vii Part VII The Culture of Sharing and the Sharing Economy Development of the Sharing Economy in China: Challenges and Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Yide Ma and Haoran Zhang Knowledge Sharing and the Sharing Economy in India . . . . . . . . . . . . . . . . 485 Arul George Scaria and Shreyashi Ray Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Contents ix About the Authors Arpan Banerjee is a Scientia doctoral scholar at the University of New South Wales in Australia. He is on leave from Jindal Global Law School in India, where he serves as assistant professor and assistant dean and heads the Centre for IP & Technology Law. His areas of interest are IP law (focusing on copyright and trade mark law), media law, and entertainment law. He has published widely and received various grants and awards. In recent years, his accomplishments and engage- ments include being awarded the Alexander von Humboldt Foundation German Chancellor Fellowship, being co-awarded the British Academy/Leverhulme Small Research Grant, being selected for the Stanford Law School-University of Pennsylvania International Junior Faculty Forum, and winning the ATRIP writing prize for young scholars. Dian Chen is graduate student at the School of Economics and Management, Beihang University, majoring in finance. She received a bachelor’s degree in eco- nomics, and her current topic on her graduation thesis is “Empirical Research on the Impact of Margin Financing and Margin Financing on ETF Pricing Efficiency.” Xiangdong Chen is a full professor at the School of Economics and Management, Beihang University, China, in the fields of international technology transfer and innovation studies, particularly patent quality studies. His major research and teach- ing areas are international technology transfer, innovation management, and inter- national business. In recent 20 years, he has been concentrated on patent and IP-based research projects and published scientific papers and books related to stra- tegic patent resource management in Chinese market and emerging technologies related to regional innovation studies. He received his bachelor’s degree in engi- neering and master’s degree in philosophy of technology (Northeast University in China) and PhD in economics and social science (University of Potsdam, Germany), and he was visiting scholar at Manchester Business School in UK and visiting pro- fessor at University of Potsdam in Germany, Portland State University in the USA, Maastricht University in the Netherlands, INPI and typical universities in Brazil, etc., on various research over patents. x Celine Melanie A. Dee practices intellectual property, technology, and corporate law in the Philippines. Her research focuses on intellectual property and privacy protection in light of technology, innovation, and development. She received an LLM in information technology and intellectual property laws (with distinction) from the University of Hong Kong. Biswajit Dhar is professor at the Centre for Economic Studies and Planning in Jawaharlal Nehru University, New Delhi. Prior to joining the university, he was the director general of Research and Information System for Developing Countries, a Government of India think-tank. He also helped in establishing the Centre for WTO Studies, established by the Government of India, and served as its head. Dhar has been working as a researcher and a policy adviser on technology policy and intellectual property rights for more than three decades. He has served as a member of several expert committees of the Government of India and has also rep- resented India in bilateral and multilateral negotiations, including the World Trade Organization, the UN Framework Convention on Climate Change, and the World Intellectual Property Organization. He has been nominated in several international expert groups of the United Nations Environment Programme and the World Health Organization. Kaidong Feng received his doctorate from SPRU at University of Sussex, UK, in 2010. He currently works as an associate professor of public policy in School of Government at Peking University, Beijing, China. His research interests focus on China’s industrial development, innovation policy, and technological learning of developing country firms. Juan He is an associate professor of law and an associate director of Division of Social Science and Management of Graduate School at Shenzhen, Tsinghua University. Meanwhile, she is an expert of Intellectual Property Office of Shenzhen Municipality, a legal expert of Shenzhen Law Society, an expert of trial quality assessment of Shenzhen Qianhai Cooperation Zone People’s Court, and an expert of mediation of intellectual property rights dispute of Shenzhen Nanshan District People’s Court. Her research interests are in the area of intellectual property law and competition law. She holds LLD degree from Peking University, LLM and LLB from Tsinghua University, and BE from Hefei University of Technology. She has accomplished postdoctoral research at Tsinghua University and Erasmus postdoc- toral research at University of Turku, Finland. Yangkun Hou Doctor of Law, is a researcher on IP Law, associate professor of Law School of Beijing Institute of Technology, deputy director of IP Research Center, and visiting scholar of Stanford University Law School. He has more than 20 years of experience as a lawyer and is qualified as an engineer. He has published more than 10 academic monographs and has published more than 40 academic papers. He has been invited to participate in the legislative work of the Standing Committee of the National People’s Congress, the Standing About the Authors xi Committee of the Beijing Municipal People’s Congress, and other government departments. He is an expert of the Expert Advisory Committee of the Intellectual Property Case Guidance Research (Beijing) Base of the Supreme People’s Court of China, an expert of the National Science and Technology Department, an expert of the Ministry of Education, and an expert of the Beijing Municipal Science and Technology Commission. Weijie Huang LLB and LLM (Sun Yat-sen University), is a PhD candidate in the Faculty of Law, University of Hong Kong. She got the 2017–2018 Fulbright-RGC Hong Kong Research Scholar Award and studied in University of California at Berkeley, School of Law, as a visiting student researcher from September 2017 to June 2018. Being selected to a PhD training program, she also studied in Singapore Management University, School of Law, for 6 months. Her research interests include copyright, user-generated content, media law, and law and economics. She got the first prize in 2016 Guangdong Province Law Society-Civil & Commercial Law Association Conference and the Outstanding Paper Award in 2017 China Law and Economics Forum. She also ranked Top 10 in 2018 ATRIP Essay Competition. She has involved in many research projects including “Digital China” committed by Australian Research Council and “Joint Research Project on Prosumerism and IP” funded by Eurasia-Pacific Uninet. Reji K. Joseph is associate professor at Institute for Studies in Industrial Development, New Delhi, India. His broad area of specialization is in international trade, investment, and innovation. He has to his credit papers on trade policy mak- ing, WTO TRIPS Agreement, and access to medicines, patents, and innovation, international investment agreements, and a book on Indian pharmaceutical industry. Malathi Lakshmikumaran has more than 30 years of experience in the field of biochemistry and molecular biology with an expertise in plant genomics, DNA fin- gerprinting, and genetic transformation. She has successfully supervised several PhD students in the area of plant molecular biology. She has more than 100 publica- tions to her credit in various international and Indian journals. Prior to joining the firm, she served as the head at the Centre for Bioresource and Biotechnology Division in The Energy and Resource Institute (TERI) for a period of 17 years. At present, she serves as an executive director and heads the IP division of the firm. She is a registered patent agent and has been actively engaged in prepar- ing, filing, and prosecuting of patent applications, both in India and abroad. She mainly works on pharmaceutical, chemical, and biotechnological patent applica- tions. She advises clients on plant variety protection and registration. She is actively involved in the area of biodiversity and traditional knowledge. Malathi also undertakes extensive work for start-ups and incubates, especially with incubates in C-CAMP and IIT Delhi, advising them on patents and freedom to operate opinions. About the Authors xii Junran Li is currently a PhD student of public administration at Peking University, Beijing, China. Her research interests include science and technology policy, gov- ernment–enterprise relationship, and evolution of national innovation systems. Ruixi Li is a lecturer in the Department of Business Administration, School of Economics and Management, China University of Labor Relations. Her areas of research interest include technology learning, technological innovation, and man- agement. She received her PhD degree from Beihang University in 2018, major in management science and engineering; the master’s degree at School of Business, Nanjing Normal University, major in economics; and bachelor’s degree in school of liberal arts and science, Henan University, major in economics. She has participated in projects of National Social Science Fund and National Natural Science Foundation of China and published articles in journals of Studies in Science of Science , China Science and Technology Forum , and China’s Economic Issues. Yahong Li JSD (Stanford), is an associate professor and director for LLM Program in IP/IT at the Department of Law of the University of Hong Kong (HKU). She specializes in IP law with a focus on cross-disciplinary study of IP, culture, and technological innovation. She is an author/editor of, inter alia , Patents and Innovation in Mainland China and Hong Kong: Two Systems in One Country Compared (Cambridge University Press, 2017), Copyright, Internet and the Balance of Rights (HKU Press, 2016), Imitation to Innovation in China: the Role of Patents in Biotech and Pharmaceutical Industries (Edward Elgar, 2010), and numerous peer-reviewed journal articles. She is a member of ATRIP, a council member of China IP Law Association, and an honorary advisor of Hong Kong Institute of Patent Attorneys. Yanbing Li is a PhD candidate in law at the University of Freiburg and doctoral researcher at the Max Planck Institute for Innovation and Competition in Munich, Germany. She has graduated from the China University of Political Science and Law and holds an LLM in German law from University of Heidelberg and an LLM in European intellectual property law. She was Yong Pung How Research Fellow at the Applied Research Center of Intellectual Property Assets and the Law in Asia (ARCIALA), Singapore Management University from 2015 to 2016 and external research fellow from 2017 onward. Prior to joining SMU, she was visiting scholar at the Queen Mary University of London in 2013. Her current research interests include international and comparative copyright law and media and entertainment law. Chuntian Liu is professor of Law and academic supervisor for LLD Candidates at Renmin University of China (RUC). He is founding dean of the RUC Intellectual Property (IP) Academy and chairman of the China IP Law Society. His specialty is intellectual property law. Liu has published over 60 articles at leading law journals such as the Social Sciences in China, China Legal Science , etc. Since 1980, he has been actively About the Authors xiii participating in the legislation of China’s Copyright Law, Trademark Law, Patent Law, and Anti-Unfair Competition Law. A number of his viewpoints have been well taken and quoted in the legislative documents. He also contributed to designing the National Intellectual Property Strategy of China. In 1985, he was the first professor to teach in-depth lectures on the IP Law in China, and he has been a key pioneer and architect of China’s IP law higher education system. Kung-Chung Liu studied law at the National Taiwan University where he received the degrees of Bachelor of Law and Master of Law. He later obtained his Doctor of Law degree from the Ludwig Maximilian Universität (University of Munich), Germany. Kung-Chung has more than 28 years’ and 18 years’ experiences in the intellectual property law field and telecommunication and Internet law, respectively. He visited Singapore Management University between April 2014 and June 2015 and found the Applied Research Center for Intellectual Assets and the Law in Asia (ARCIALA). He joined SMU as Lee Kong Chian Professor of Law (Practice) in 2017 after he retired as research fellow from Institutum Iurisprudentiae, Academia Sinica, Taiwan. His academic credential is widely recognized in Asia, as he is also co-appointed full faculty member of the Graduate Institute of Technology, Innovation & Intellectual Property Management; National Chengchi University (2010–), Taiwan; and Renmin University of China (2017-). Miaochen Lv received her BS at Beihang University of Financial Engineering (2011–2015) and received her MS degree at Beihang University of International Trading (2016–2017). She is pursuing her PhD degree in the school of Economics and Management at Beihang University majoring in management science and engi- neering. Her current research interests include patent innovation, political uncer- tainty, and corporate finance. Until now, she has published one journal paper, “Political uncertainty and corporate debt financing: empirical evidence from China” in Applied Economics, and two conference papers, “The Impact of Carbon Emissions Trading on Corporate Innovation-Evidence from China” and “A litera- ture based comparative study on ICT between China and India,” in the 14th International Conference on Industrial Management. Yide Ma is Wenlan distinguishing professor at Zhongnan University of Economics and Law, vice chairman of China IP Law Society, and delegate member to the National People’s Congress of China. His specialties are intellectual property law and civil law. He has published over 80 articles on core journals, such as Social Sciences in China , Chinese Journal of Law , and China Legal Science , and undertaken over 20 national-level research projects, which are highly significant among Chinese aca- demic community. He has played a significant role in the launch and implementa- tion of the National Intellectual Property Strategy and the National Innovation-Driven Development Strategy, for which he himself was one of the framers who had helped draft the National Intellectual Property Strategy Outline. Many of his proposals have been adopted into implementation by Communist Party of China Central About the Authors xiv Committee, National People’s Congress, and State Council, which strongly advanced the deployment of China IP industry. Renuka Medury is an intellectual property lawyer from India. She has significant experience in the drafting and review of IP-related contracts and due diligence work. She graduated from the Duke University School of Law, USA, with an LLM in “Law & Entrepreneurship” and undertook a practical experience component with the Office of Licensing & Ventures, Duke University. She previously completed an LLM (Intellectual Property Specialization, Law & Technology Certificate) from the Boalt School of Law, University of California, Berkeley, USA, in 2012. Renuka worked as a research associate with the Applied Research Centre for Intellectual Assets and the Law in Asia (ARCIALA), Singapore Management University, between 2017 and 2018, and is an external research fellow with ARCIALA. She is currently working as part of the “Commercial IP” team of a prominent law firm in the National Capital Region, India. Smita Miglani is currently working as a research associate at ICRIER, New Delhi. She has over 9 years of work experience in economic policy-oriented research in India. She has published work in reports, working papers, books, and refereed jour- nals across a number of sectors. Her research has contributed to India’s negotiating strategies in signing bilateral trade and investment agreements and policymaking at the domestic level. She holds an MPhil degree in economics from Jawaharlal Nehru University, Delhi, and is trained in the application of advanced economic analysis and econo- metrics. Her broad areas of research interest include international trade and invest- ment, finance, and industry sector studies. Uday S. Racherla served as the professor of Innovation and Intellectual Property Management at IIT-Kanpur, India, during 2011–2017. Prior to this, he taught briefly at the Carey School of Business, Johns Hopkins University, USA. Prior to the aca- demic stint, he had more than 15 years of R&D experience in Fortune 500 compa- nies in USA. During 1992–2011, he held many top executive positions—including senior director of Innovation at PepsiCo, worldwide director of R&D at S. C. Johnson, director of R&D at New Skin Enterprises, and other senior executive posi- tions at Unilever—wherein he invented, innovated, patented, and commercialized many new technologies in the USA, Europe, India, Japan, and China. He obtained his PhD degree under a Nobel Laureate from Purdue University and an executive MBA from the Kellogg School of Management, Northwestern University. He pub- lished over 120 research papers, authored a book, served as an editor of two books, and obtained 12 patents. Shreyashi Ray is a legal researcher and policy consultant from India. She worked as a research fellow at the Centre for Innovation, Intellectual Property and Competition, Delhi, from 2016 to 2018, where she focused on assessment and legal/ policy recommendations pertaining to open science in the Indian context. Currently, About the Authors xv she is a consultant with the district administration of Ranchi, Jharkhand, and is responsible for planning and monitoring the implementation of health rights in mining-affected regions. She has previously worked on intersections of law with gender, sexuality, and impoverishment. She has keen interest in the convergence of research, data analysis, and policy implementation in the area of human rights. Arul George Scaria is an assistant professor of Law and co-director of the Centre for Innovation, Intellectual Property and Competition (CIIPC). He is also an affili- ate faculty of the CopyrightX program, which is a course offered each year from January to May under the auspices of the Harvard Law School, the HarvardX distance-learning initiative, and the Berkman-Klein Center for Internet and Society, Harvard University. He did his doctoral research at the International Max Planck Research School for Competition and Innovation, Germany, and postdoctoral research at the Catholic University of Louvain (UCL), Belgium. He has two single authored books to his credit— Ambush Marketing: Game within a Game (Oxford University Press, 2008) and Piracy in the Indian Film Industry: Copyright and Cultural Consonance (Cambridge University Press, 2014). His key areas of interest and specialization are science and technology policies, open movements, intellec- tual property law, and competition law. Juanjuan Sun received her PhD in food law at Nantes University of France. Currently, she is postdoctor as well as a researcher of Center for Coordination and Innovation of Food Safety Governance at Renmin University. Her research interests include regulatory theory, food law, and agricultural law. Experiences specified in food safety regulation include participation in European Food Law Program Lascaux under the EU 7th Framework Programme from 2009 to 2015. When it comes to China, there are legislative activities in revision of food safety law and law on quality and safety of agricultural product, research programs for formulating department rules on risk communication and credit system in the field of agro-food, and evaluation for food law enforcement and food safety city construction. Besides, there are translated books like the European Food Law and European Food Law Completion and published books like Building food safety governance in China. Sunita Tripathy is associate professor at the Jindal Global Law School, O.P Jindal Global University, India. Email: stripathy@jgu.edu.in. She is currently conducting doctoral research under the prestigious grant at the European University Institute, Italy, and was formerly a NALSAR-Western Master of Laws scholar at the University of Western Ontario, Canada. She has been a teaching and research fellow at the University of Washington School Of Law, Seattle; the Singapore Management University School of Law, Singapore; and Nanjing University of Information Science and Technology, China. She enjoys advanced scholarship about law and its role in the society with special focus on its nexus with technology, intellectual prop- erty, and public policy. She has published on issues interfacing intellectual property law and competition policy, led seminars and lecture series on traditional and About the Authors xvi alternate approaches to intellectual property protection and management, and has spoken in several intellectual property conferences and forums in India and overseas. Ruolan Wang graduated from Beihang University, majoring in finance, and received a master’s degree. She obtained the Bachelor of Science degree with major in mathematics and applied mathematics. She has participated in the project of National Natural Science Foundation of China on Innovation Management Mechanism Research Based on Complex Product Systems and participated in the research work of the project group of “Postgraduate Case Teaching.” The research direction of graduation thesis is that the composition analysis and influencing fac- tors of ETF bid-ask spread in China. Lizhou Wei is a PhD candidate in law at Ludwig Maximilian University of Munich Germany. He holds an LLB degree from the China University of Political Science and Law and an LLM degree in German law in Munich. He specializes in intellec- tual property law, unfair competition law, and civil law. His publications mainly focus on issues of trademark law, law on combating unfair competition, and inter- section between IP and competition law. Shaofang Xue graduated from the School of Economics and Management, Beihang University, majoring in Industrial Engineering (Engineering Management) from September 2014 to July 2018, and was awarded the degree of Bachelor of Management. In 2018, she was awarded the title of outstanding graduate in Beijing. Currently she is a master student of the same school, majoring in energy economics and management. As a member of the Center for Energy and Environmental Policy Research (CEEP), she attended the 6th IAEE Asian Conference in Wuhan, China, from November 2 to 4 2018, and gave a report entitled How Endowment Influences Energy Consumption Mix: An International Comparison Lingzi Yang graduated from Beihang University with major in international busi- ness. He did his postgraduation in intellectual property with his supervisor profes- sor Chen. Chen is a man of great wisdom and has offered him much guidance which makes him go far. He was highly inspired by him at each of his research stage. His aware- ness of the significance of information technology industry in China just stemmed in his idea “Technical innovation changes world economy.” Currently he is doing a custody-related job based in Shanghai and still has every enthusiasm of feeling and understanding how innovation changes our life. Haoran Zhang is PhD student at Law School of Renmin University of China. He studied law in Zhongnan University of Economics and Law (LLB), Beihang University(LLM), and studied at Leibniz University Hannover(IN SITU Program). After his master’s degree, he worked as a lawyer at Beijing Zhinuo Law Firm and handled several famous patent and trademark cases. He also worked as an assistant About the Authors xvii researcher at Zhongguancun Intellectual Property Strategy Institute and provided opinions for government departments and companies. His specialties are intellec- tual property law (in particular patents), competition law, and internet law. E-mail: hr.zhang@ruc.edu.cn. Wenjuan Zhang is an associate professor and assistant dean for International Collaborations of the Jindal Global Law School in India. She helped the O.P. Jindal Global University found the Center for India-China Studies in October 2014, which is one of the few most active civil-society-based think-tank on comparative studies, university-based intellectual initiatives related to India and China. She was a visit- ing scholar of Yale Law School in 2012 and of Columbia Law School in 2006. She had her Marc Haas fellowship with the Brennan Center for Justice of NYU School of Law in 2015 and her PILNET Fellowship in 2006–2007. Before joining the JGLS, she served as vice director of Zhicheng Public Interest Lawyers, the biggest public interest law organization in China. She has been a well-respected legislative and policy advisor on child rights, civil society development, and public interest law in China. About the Authors 1 © The Author(s) 2019 K.-C. Liu, U. S. Racherla (eds.), Innovation, Economic Development, and Intellectual Property in India and China , ARCIALA Series on Intellectual Assets and Law in Asia, https://doi.org/10.1007/978-981-13-8102-7_1 K.-C. Liu ( * ) Renmin University of China, Beijing, China Singapore Management University, Singapore, Singapore e-mail: kcliu@smu.edu.sg U. S. Racherla Indian Institute of Technology Kanpur, Kanpur, Uttar Pradesh, India e-mail: udays@iitk.ac.in Introduction, Summary, and Some Inferences Kung-Chung Liu and Uday S. Racherla Abstract India and China make a perfect comparison pair in the area of IT industry, with each having its unique strength and potential for cooperation and synergy. Due to heavy involvement of Indian IT firms in software outsourcing arrangement by MNEs, the IP or patent resources are not important. This is especially true when compared with Chinese IT firms, which have much larger patenting volume (compared with other manufacturing sectors). Film industry in India and China has grown despite piracy. In other words, it prospered with little or no copyright protection. More importantly, piracy in China and India did not kill the content industry, film and music alike, but probably helped in building the customer base and cultivating future demand, which might not be true for a small economy with a sophisticated audience such as Hong Kong. India can look at China to find IT means for delivery and payment of cinematographic content. India and China make a perfect comparison pair in the pharmaceutical industry as well. This time around, China can learn much from India. Although there is an increase in the number of patented drugs in the pharmaceutical industry in China, patents have made relatively low contribution to the industrial value, and IP held by Chinese Special thanks to two of the first author’s PhD students at Renmin University of China, Zhang Haoran and Liu Jianchen, and Professor He Jun, Graduate School at Shenzhen, Tsinghua University, for their help in collecting and analyzing relevant materials. 2 firms is less competitive compared with that of foreign companies. In contrast, major Indian generic companies continue to invest sizeable shares of their sales turnover in R&D, which was manifest in their patenting behavior. They were more active in filing patent applications in foreign jurisdictions, but significantly less so in domestic patenting. The Indian automobile industry’s absorption of global best practices has been slower than its Chinese counterpart. Strategies of firms in the Chinese auto industry provided a boost to technological learning more quickly and broadly than in India, especially in the electric vehicle sector. India can benefit from learning from China. IP has a relatively limited role in the development of the automobile industry in India and China. Keywords Film · IT · Pharmaceutical · Sharing economy · Automobile · Plant varieties · IP · Innovation · India · China 1 Background In October 2014, ARCIALA held a workshop on “The Actual Role of IP in the Technological and Business Innovation in India and China” with an aim of bridging the monolithic elephant and dragon. This workshop was the first of its kind, though small in scale, and led to the publication of the book Innovation and IPRs in China and India—Myths, Realities and Opportunities in 2016. 1 It was felt that the topic is worth further exploration. As a follow-up ARCIALA co-hosted a 2-day workshop with Renmin University of China, Jindal Global University (New Delhi, India), and the German Max Planck Institute for Innovation and Competition on “Innovation, Economic Development and IP in India and China” on September 27 and 28, 2016, with expanded ambit and refreshed focus. This workshop was more of a preparatory nature, as it was about searching for a research framework, topics, questions, and approaches. The workshop strived to examine the development of industries which are reflec- tive of the innovation and economic development of the two giant economies or of vital importance to them. During that examination, it was asked why certain indus- tries have developed in one country and not in the other and what role state innova- tion policy and/or IP policy has played. Is it causal, facilitating, crippling, co-relational, or simply irrelevant? What can India and China learn from each other, and is there any possibility of synergy, especially given that China is aging rapidly while half of the population of India is under 25? 2 1 Kung-Chung Liu/Uday S. Racherla (ed.), Innovation and IPR in China and India—Myth, Realities and Opportunities, Springer 2016. 2 According to Wikipedia (https://en.wikipedia.org/wiki/Demographics_of_India), more than 50% of India’s population are below the age of 25 and more than 65% are below the age of 35. It is expected that, in 2020, the average age of an Indian will be 29 years, compared to 37 for China and K.-C. Liu and U. S. Racherla 3 Six topics for this workshop were chosen: Innovation and IPR Policy, Open Innovation: Peer Production and the Sharing Economy, Film Industry, Software Industry, Pharmaceutical Industry and Developments in the Protection of Plant Varieties and Food Security. The width and depth of this study went beyond the domain of legal academics. Therefore, economists and management professors were invited to speak as well. After the workshop, it was recognized that a solid empirical study on one specific industry in India and China should be first conducted as a pilot project, which can serve as a model for other study groups on different industries. The information technology (IT) industry was chosen 3 given its vital importance to innovation and economic development in China and India. This pilot project was funded by the Max Planck Institute for Innovation and Competition and set out to answer the fol- lowing questions: (1) Why have IT services, business process outsourcing (BPO)/business process management (BPM), and the software industry developed in India and not in China? (2) Why has the hardware industry developed in China and not in India? (3) What role has state innovation policy played? Is it causal, facilitating, crippling, co-relational or simply irrelevant? (4) What role has national IT infrastructure played? (5) What role has IT sui generis legislation played? (6) What role has IP (national policy, laws, rights, and adjudicated cases) played? Is it causal, facilitating, crippling, co-relational, or simply irrelevant? (7) What can India and China learn from each other? In addition, we have convened another six study groups to continue our research topics of the 2016 workshop with recalibration: (1) IP codification and innovation governance, (2) film industry, (3) pharmaceutical industry, (4) plant varieties and food industry, (5) automobile industry, and (6) peer production and the sharing economy. On December 18–19, 2017,