One of the reasons accounting for the increasing number of patent applications in China is the patent subsidy policy. Behind the prosperity of patent applications in China, it cannot be denied that the maintenance time of patents is short and the conversion rate of patents is low. More and more scholars hold that there is a connection between the patent subsidy policy and the aforementioned phenomena. The operation of the patent system is on the basis of the market. Invention activities under the patent system shall be deemed to be market activities. The patent application fee is one of the considerations for the inventor to obtain patent protection and plays a role in economic lever, promoting the inventors to treat patents reasonably and preventing alienation for the purpose of patent application. However, on the whole the current patent subsidy policy undermines the market basis of the operation of patent system and accordingly the government shall change its excessive intervention. Public polices, represented by the patent subsidy policy shall be altered in order to leave the activities of the patent market and the allocation of innovation resources to the market and the government shall focus on the creating of a social environment which is better for innovation, strengthening patent examination, punishing improper applications, and making all necessary elements, operation conditions and market environment for the innovative market be available.