Abstract:: This study found that a change in foreign patent in China for motivation, foreign patent in China from the beginning of the promotion of technology transfer, and gradually evolved to obtain competitive advantage by various means and methods, and then to reach the purpose of the blockade and monopoly market. The state space model of variable parameters is established in this paper is tested, using 1985-2012 data, quantitative analysis shows that: in the promotion of total factor productivity Chinese progress before 1992 foreign patent in China significantly, but after 1996, total factor productivity China foreign patent in China had a negative effect on. The empirical analysis shows that Chinese patent system in enterprise competitive advantage is more favorable for the foreign enterprises and domestic enterprises, also the lack of ability to use intellectual property.