Like many other Free Trade Agreements (FTAs), the Regional Comprehensive Economic Partnership (RCEP) is often celebrated for reducing barriers to economic integration. Yet beyond these visible gains, technology—an invisible engine driving industrial upgrading—has also become increasingly borderless through high-tech goods trade and investment in R&D facilities overseas. Given the vastly different levels of innovation capabilities of the 15 RCEP members across Northeast Asia, Oceania and ASEAN, understanding the intricacies of technology flow across the region is therefore not just a matter of trade policy but a strategic necessity to ensure that the economies can collectively benefit from the partnership.
On 27 March 2026, ACI hosted a webinar titled “Unlocking RCEP Region’s Technological Landscape Through Patent Data”, taking stock of the pre-existing technological portfolios of the RCEP countries at the time the Agreement entered into force. From dynamics in technology generation to distinctive patterns of international collaboration among countries, the session sheds light on how RCEP member countries can leverage existing knowledge exchange channels to facilitate more effective technology dissemination and adoption.
Patent Data: The Under-Utilised Information Goldmine
The webinar began by introducing patent statistics and the PATSTAT database, which standardises rich, granular patent application information from patent offices worldwide. The presenter demonstrated how to compile customised patent data to reveal technological commercialisation intentions and innovation capabilities.
RCEP Countries’ Diverse Performance in Technological Innovation
Northeast Asian countries, especially China, lead in technology creation but remain largely “domestic-focused,” rarely seeking external collaboration or patent protection in overseas markets.
In contrast, collaboration has been a key strategy for many ASEAN countries. Singapore and Malaysia remained the regional innovation leaders with well-established domestic collaborative networks. Other emerging markets in the region, such as Vietnam, Thailand, and the Philippines, have robust linkages with overseas partnerships, both through cross-border patenting and co-inventions with foreign collaborators. While FDI inflows are a major channel for disseminating foreign technology, a “performance gap” exists: Northeast Asian and Oceania countries generally have better innovation outcomes than ASEAN countries at the same levels of FDI inflows. Even within ASEAN, there is a stark distinction between high-performing countries like Singapore and others such as Vietnam, Indonesia, and Thailand, suggesting that investment-supportive policies need to be combined with improvements to intellectual property rights (IPR) systems.
While FDI inflows are a major channel for disseminating foreign technology, a “performance gap” exists: Northeast Asian and Oceania countries generally have better innovation outcomes than ASEAN countries at the same levels of FDI inflows. Even within ASEAN, there is a stark distinction between high-performing countries like Singapore and others such as Vietnam, Indonesia, and Thailand, suggesting that investment-supportive policies need to be combined with improvements to intellectual property rights (IPR) systems.
Key Highlights:
1. Technology flows are just as critical as goods and services for the long-term competitiveness growth of the RCEP member countries.
2. China leads in patent generation but remains domestically focused; ASEAN economies rely more on foreign partnerships in technological development.
3. FDI acts as a channel for technology dissemination and transfer. But FDI alone is insufficient. Its impact can be enhanced when supported by stronger intellectual property rights and domestic absorptive capacity across ASEAN.
4. The RCEP’s IP chapter stands out from existing regional trade agreements due to its comprehensiveness and inclusiveness. It recognises the need for technical assistance in countries with weaker IP protection, thereby building institutional trust for cross-border technological diffusion and collaboration.
By YAN, Bowen
ACI Perspectives 