Accelerating Patent Transformation in China: A Strategic Push Toward Long-Term Mechanisms
On 10 June 2025 the State Intellectual Property Office (SIPO issued Notice on Accelerating the Formation of a Long-term Mechanism for the Special Action to Promote the Transformation and Application of Patents, which aims to solidifying the transformation and practical application of patents in China.
The Notice lays out a clear vision: patent innovation must translate into tangible economic and technological gains. With 2025 marking the final year of the ongoing three-year national action plan (2023–2025), this Notice represents a pivotal shift from short-term campaigns to a long-term, market-oriented ecosystem.
From Policy to Performance: The Need for a Strategic Framework
Since the launch of the Special Action Plan in October 2023, patent transformation efforts have intensified across China’s universities, research institutions, and enterprises. The results are noteworthy: over 1.34 million patents inventoried, 680,000 selected for conversion, 9,000 high-growth SMEs supported, and an estimated RMB 20 billion in financing intentions generated.
However, with many short-term goals accomplished, attention now turns to institutionalizing this momentum. The Notice highlights that moving from reactive, policy-driven actions to proactive, system-based mechanisms is essential to achieving a scalable and replicable patent commercialization model.
Anchoring Goals and Redefining Priorities
At the core of the Notice is a focus on “promoting the industrialization of a batch of high-value patents.” This is supported by four strategic sub-goals: increasing the implementation rate of patents in academia, enabling SME growth through patent-driven innovation, reinforcing intellectual property (IP) in key industries, and fostering the development of patent-intensive products.
To reach these targets, the document outlines a multi-stakeholder model. The supply side (e.g., universities), demand side (e.g., enterprises), policy side (e.g., government incentives), and service side (e.g., IP agencies) must operate in sync. This collaborative architecture aims to ensure that patent portfolios don’t just grow in number but mature into economic value.
Building Long-Term Infrastructure for Patent Application
The long-term mechanism proposed emphasizes sustainability and market alignment. Universities and research institutes are encouraged to refine their internal IP management systems, particularly moving away from quantity-based assessments toward value-driven metrics. For instance, policies such as “use first, pay later” and open licensing are encouraged to lower commercialization thresholds.
Simultaneously, the Notice calls for stronger collaboration across the innovation chain. Industry-specific IP operation centers, patent pools, and innovation consortia are highlighted as vehicles to enhance sector-wide competitiveness. Moreover, new technologies such as artificial intelligence are being piloted to improve the matching of patent supply with industrial demand.
Boosting SMEs and Industry Through Patent Power
SMEs remain a focal point. The Notice identifies patent-driven SMEs as the backbone of future industrial growth and urges local governments to increase policy and financial backing for them. Support mechanisms include tailored patent examination services, financial incentives, and integration into national programs such as “little giants” or single-product champions.
Industrial clusters are also expected to benefit from tighter IP integration. The guidance promotes a structured approach to cultivating patent-intensive products, with output value already nearing RMB 1 trillion in 2024. These products are viewed as critical nodes in linking innovation to market output.
Enhancing Policy Coherence and Service Ecosystems
Beyond industry measures, the Notice underscores the importance of refining incentive structures. All existing patent-related policies are subject to review to eliminate outdated or counterproductive elements, particularly those that focus solely on quantity. Procurement rules for IP agency services are to be revised to promote quality-based pricing and outcomes.
In terms of support infrastructure, the document calls for both public and private service providers to scale up. On the public side, inclusive services like policy consulting and business training are to be strengthened. On the market side, patent agencies are encouraged to expand their service offerings, particularly in valuation and commercialization.
Conclusion: A Structural Pivot for China’s Innovation Ecosystem
This Notice signals a shift in China’s intellectual property policy from phase-based campaigns to a durable, scalable mechanism designed to underpin long-term innovation. The emphasis is no longer merely on accumulating patents, but on their strategic deployment to strengthen national competitiveness, particularly in key technologies and industries.
By embedding IP transformation deeper into academic, industrial, and financial systems, the Chinese government aims to unlock greater economic returns and drive higher-quality development. As such, the Notice is not just a policy adjustment—it is a call to reframe intellectual property as a dynamic asset, one that powers the next phase of China’s innovation economy.