Abstract: Since there is a large innovation capability gap between China and developed countries, China implements protective patent examination mechanism, which facilitates domestic firms to get patent right easier and sooner. Foreign firms need to wait longer to get patent right, and it is more difficult for foreign firms to get patent right. We examine the effect of patent examination mechanism from perspective of patent grant and provisional life. By analyzing the technology monopoly effect of patent protection, we find that protective patent examination mechanism prevents foreign firms from implementing patent competition strategy. However, compared with domestic firms, foreign firms pay more attention to the market income mobilization of patent, hence they tend to extend patents' provisional life. Since protective patent examination mechanism further extends patent provisional life of foreign firms, it is more beneficial for foreign firms to implement patent market strategy. On the other hand, since it is easier for domestic firms to get patent right, large number of patents with low level of technology and low market income are granted, which increases firms' patent renewal fee. Therefore, from the perspective of patent strategy, protective patent examination mechanism is not fully beneficial to domestic firms.

Key words: patent, examination mechanism, patent strategy, provisional life, patent grant