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WORLD IP TODAY REPORT PATENTED IN CHINA – THE PRESENT AND FUTURE STATE OF INNOVATION IN CHINA PowerPoint PPT Presentation


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WORLD IP TODAY REPORT PATENTED IN CHINA – THE PRESENT AND FUTURE STATE OF INNOVATION IN CHINA. Eve Y. Zhou, Ph.D. and Bob Stembridge Scientific business of Thomson Reuters. OVERVIEW.

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WORLD IP TODAY REPORT PATENTED IN CHINA – THE PRESENT AND FUTURE STATE OF INNOVATION IN CHINA

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World ip today report patented in china the present and future state of innovation in china l.jpg

WORLD IP TODAY REPORTPATENTED IN CHINA – THE PRESENT AND FUTURE STATE OF INNOVATION IN CHINA

Eve Y. Zhou, Ph.D. and Bob Stembridge

Scientific business of Thomson Reuters


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OVERVIEW

  • World IP Today latest issue to be published, analyzing patent activity in China using data drawn from Derwent World Patents Index (DWPI)

  • Report looks at current patent trends and speculates how the world of patent information will look in five years

  • Patent volumes and trends are explored, as well as the underlying causes of increased innovation in China, including economic and government policy factors


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KEY FINDINGS

  • China has become the third largest patent office in the world in a very short space of time and, if current trends continue, will dominate the patent information landscape by 2012

  • Analysis of patent volumes over the last five years from the five major patent offices shows that inventions from China have been growing at a faster rate than any other region

  • Government incentives in place to embrace innovation

  • China’s shift from a manufacturing-based economy to a knowledge-based one requires foreign companies to re-examine their global IP strategies


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METHODOLOGY

  • Measurable attributes used to track innovation trends:

    • Total patent volume

      • Two components -

        • domestic filings (basics)

        • foreign filings (equivalents)

    • Basic patent volume

    • Ratio of basics to total volume


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TOTAL PATENT VOLUME 2001-2007


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AGGREGATE TOTAL PATENT VOLUME 2001-2007


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BASIC PATENT VOLUME 2001-2007


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AGGREGATE BASIC PATENT VOLUME 2001-2007


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TWO YEAR GAP - TOTAL VS BASIC VOLUMES


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RATIO OF BASIC TO TOTAL VOLUME


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FUTURE PREDICTIONS

  • Based on average growth rates over the last five years, projections into the future for patent volumes from the five major patent offices are given for total patent volume and basic patent volume


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Forecast

TOTAL PATENT VOLUME PROJECTIONS


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BASIC PATENT VOLUME PROJECTIONS

Forecast


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DOMESTIC VS. FOREIGN PATENT APPLICATIONS


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CHINA’S INVENTION PATENT APPLICATIONS OVERSEAS

  • Chinese 11th Five Year Plan highlights innovation as a focus for the economy with the objective to become an "innovation-oriented" society by 2020

  • File in China first policy can have a serious impact on foreign companies conducting R&D in China


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CHINA’S TECHNOLOGY FOCUS TODAY


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CHINA'S WORLDWIDE CONTRIBUTION


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TECHNOLOGY SHIFT - HISTORICAL PERSPECTIVE


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TECHNOLOGY SHIFT - GEOGRAPHIC PERSPECTIVE


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GOVERNMENTAL POLICIES AND GOVERNMENT’S ROLE IN INNOVATION

  • R&D Budget

    • Growth planned from 1.4% in 2006 to 2.5% of GDP by 2020

    • GDP growth targets of 7.5% p.a. to 2010, then 7.0% to 2020

    • Represents a 440% increase in R&D funding by 2020

  • Tax and Financing

    • Tax deductions for R&D expenses

    • Increased government-backed lending

    • Discounted interest rates for R&D investment

  • Indigenous Innovation and Technology Standard

    • Royalty payments for local inventors

    • Particularly applied in telecommunication and electronics industries


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GOVERNMENTAL POLICIES AND GOVERNMENT’S ROLE IN INNOVATION

  • Government’s role in academia and enterprise

    • Chinese academic sector contributes a significantly higher proportion of patent applications to the national total compared to many other countries

  • Monetary Incentive for domestic inventors

    • Additional subsidies and fee reimbursements available


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PATENT QUANTITY VS. QUALITY

  • Subsidies are a factor driving rapid growth in patent applications

  • Levels of patent protection in China

    • Invention patents

    • Utility model patents

    • Design patents

  • Quality initiatives are on-going in the Chinese Patent Office (SIPO)

  • Quality as measured by success rate of granted patents yet to be determined over time


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CONCLUSIONS

  • Foreign companies conducting business in China

    • Impact of law changes on IP strategies

    • Challenge of recognising quality innovation

  • Chinese companies and institutions

    • Need for awareness of international prior art and patent positions

  • Chinese government agencies and quasi-governmental organizations

    • Identification of technology gaps and potential partners to help fill them

  • Information industry

    • Challenges posed by huge and rapidly growing volumes of non-Roman character patent information


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