Thursday 11 December 2008

China on path to lead world in new patents

China has greatly stepped up its applications for new patents and will pass Japan, the current leader in new patents, by 2012, according to a report released on Wednesday by Thomson Reuters Scientific.

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China on path to lead world in new patents

Reuters in Washington
10 December 2008

China has greatly stepped up its applications for new patents and will pass Japan, the current leader in new patents, by 2012, according to a report released on Wednesday by Thomson Reuters Scientific.

The report found that China is moving away from traditional agriculture and manufacturing industry and concentrating more on innovation, especially in areas such as chemical engineering.

“China is set to dominate the patent landscape by 2012... to become the world’s leading innovator,” said Bob Stembridge, a spokesman for Thomson Scientific, one of the research arms of Thomson Reuters.

“Inventions from China have been growing at a faster rate than from any region in the world. This has been driven by government incentives,” Mr. Stembridge told a telephone briefing.

These include bonuses worth a year’s salary given to inventors who receive new patents, said Eve Zhou, the consultant who wrote the report.

“In China, 16 per cent of patents comes from academia,” Zhou told the briefing. This compares to 4 per cent in the United States and 1 per cent in Japan.

“That is because the Chinese government has much direction over what technical area should be researched.”

Thomson Scientific analysed the top five patenting authorities globally – Japan, the United States, the European Patent Office, South Korea and China.

They counted the number of new patents filed from 2001 to last year and broke them down by how they were filed -- by their own nationals to their national patent authority, or by foreign companies seeking patent protection within the country.

“China, from humble beginnings, is experiencing the most rapid growth,” Mr. Stembridge said.

Japan has the highest total patent volumes year to year during the period, but the United States has been narrowing that lead. For the period, Japan had 37 per cent of all new patent applications with 3.5 million. The United States had 27 per cent, or nearly 2.6 million. China, Korea and Europe each had 12 per cent of the share.

But China’s year-to-year growth in the sheer number of patents was marked, the report found.

Based on the previous five years, Thomson Reuters predicted Japan’s annual growth rate in new patents would fall from 2 per cent to -2.7 per cent, the United States would stay at around 13 per cent to 14 per cent, but China would surge from 26.8 per cent annual growth to 34 per cent.

“China is set to surpass Japan in 2011 and the United States in 2012,” Mr. Stembridge said. “By 2011, China becomes the most prolific basic patenting authority in the world.”

The report did not look at the quality of the patents, whether they were granted or which precise areas they involved.

Ms Zhou said they broadly involved chemical engineering, digital computers and telephone and data transmission.