Exploring the worldwide patent surge

Abstract

Worldwide patent filings are at historically unprecedented levels. In 2011, the total number of patent applications for the first time exceeded two million-double the approximately 1.05 million patents filed in 1995. Understanding what is behind this growth is important, as it may indicate faster technological progress, new innovation models and strategic shifts in how companies use the patent system. Policymakers need to understand what drives the growth in patenting worldwide, not least to evaluate how the patent system can cope with the increasing flow of applications. A number of studies have looked at the growth in patent filings in individual countries, but have not focused on the world as a whole. This paper seeks to fill this gap by providing an analysis of global patenting trends using the most comprehensive data currently available. Among other things, it finds that subsequent patent filings-additional filings of the same invention, mostly in additional countries-contributed considerably to the growth in filings worldwide, pointing to globalization as one important driver of filing growth. However, no single factor can fully explain the marked increase in the use of the patent system.

Is there a role for patents in the financing of new innovative firms?

“…The research described in these papers covers both the United States and Europe as well as a range of technology sectors: software, semiconductors, biotechnology, nanotechnology, and the internet. The years covered are roughly 1985 to the near present, during a period when the patent system and patenting strategy in some of the sectors, notably software and the internet, evolved (Fink et al 2016;Hall 2005;Hall and MacGarvie 2010). The firm samples are drawn in a variety of ways.…”

Should there be lower taxes on patent income?

“…invention is desired (Fink et al, 2016). It may also be the case that firms increasingly include the location of its patent filings in its tax planning.…”

Looking for Trouble? Technological Change and the Growing Importance of Patents for Telecom Operators

“…The patents-R&D ratio (patents per 1992 US$ million) increased from around .4 in 1987 to .9 in 2000 -for comparison, the increase in semiconductors was from .3 to .6 over the same period (updated Figure 1 of Hall and Ziedonis (2001)). More recent data by Fink et al (2013), who cover 13 OECD economies, show that patenting propensities in ICT continued to climb during the 2000s. Fink et al (2013) also show that the relative increase in patent filings in ICT is in fact partly due to extremely fast growth in filings on digital communication technologies -filings increased in absolute terms by almost 15 percent per year between 1995-2008, outstripping by far the R&D growth rate in that sector.…”

“…More recent data by Fink et al (2013), who cover 13 OECD economies, show that patenting propensities in ICT continued to climb during the 2000s. Fink et al (2013) also show that the relative increase in patent filings in ICT is in fact partly due to extremely fast growth in filings on digital communication technologies -filings increased in absolute terms by almost 15 percent per year between 1995-2008, outstripping by far the R&D growth rate in that sector. Our analysis focus on this aspect of changes in operators' behavior following the structural technological change that the industry has undergone in the past two decades.…”

“…The technological change has been accompanied by a dramatic increase in the use of patents and escalating patent enforcement which have resulted in outright 'Patent Wars' (Financial Times, October 17, 2011). Several interrelated factors explain this shift towards patenting in ICT: First, there has been a global patent explosion (Kortum and Lerner, 1999;Fink et al, 2013), perhaps most notably in China (Eberhardt et al, 2011). According to WIPO data, the combined share of the top 5 ICT fields on the total number of patents filed worldwide went from 18.8% in 1995, to 28.9% in 2013.…”