For Whom The Bell Tolls

For Whom The Bell Tolls. Shrinking Industrial Innovation in US.

The data regarding the patent applications, patent grants,and R&D investments for the past few years have come in,it’s time to see for whom the bell tolls

According to data released by the European Patent Office(EPO),out of the 199,275 applications received in 2023,US Submitted maximum with 48155 applications,followed by Germany at 24966, then followed by Japan at 21,520, PR China at 20735 and South Korea at 12575. EPO,also states maximum applications growth rates have been shown by PRC and South Korea

Among top 100 firms that have submitted applications with EPO,US stands first with  16601 applications by 24 entities,followed by China with 10890 applications by 12 entities,following them are South Korea 8807 applications by 4 entities,Japan 8466 applications by 17 entities,and Germany 7782 applications by 12 firms, rounding the top five,and the top five firms in number of applications are Huawei 5071 applications,Samsung 4760 applications,LG 3498 applications,Qualcomm 3275 applications,Ericsson 1969 applications.


To get a rough feel of applications scenario 2-3 years ago(assuming it takes 2-3 years to process a patent) though not an apples to apples comparison, a look at patents granted by USPTO in 2023, give the following data, Samsung is at number one  with 9036 patents, followed by LG with 4170 patents, IBM with 3953 patents, Qualcomm with 3886 patents, and TSMC with 3719 Patents, make the top five. Huawei is at number 10 with 2290 Patents.


Out of the 312,486 patents granted in 2023 by the USPTO, top 300 grantees were awared 164213 patents. US as a country led with 80213 patents awarded, Japan with 29983, Korea with 18065 Patents,China with 11239Patents, and Germany with 6738 Patents, make the top five countries.


The pattern of top patent application made or granted, reveal a pattern, Japanese focus continue to be in their traditional strength: Heavy Machinery, Automobiles, Chemicals, & Semiconductors. Korean focus on Digital Communication, Displays, & Semiconductor. Chinese focus on Digital Communication, Semiconductors, e-commerce, & Consumer Electronics. The US patents were about,Software,E-commerce,Financial Services,patents granted to universities,apart from patents to small percentage of traditional industrial firms like Boeings and Fords of the world. Germany patents were in traditional strengths Automobiles & Machinery.

A look  at R&D investments by 2500 firms across the world in the year 2022 gives following results.The top five spenders in industrial R&D are US with $526 Billion(827 Firms), China with $222 Billion Dollars(679 Firms),Japan with $116 Billion Dollars(229 Firms),Germany $103 Billion(113 Firms),and Switzerland with $37.34 Billion(62 Firms).Sixth big spender is South Korea with $37 Billion(47 Firms). The US spending will more if companies incorporated in Ireland are added.

The spending by Japanese, German, Swiss, and South Korean firms areas of their traditional strengths or in their focus areas in the case of South Korea. In case of China the investments are evenly spread in many sectors from automobiles to industrials to digital communications to Pharma to software to e-commerce to semiconductors to electronic equipment, and it its also spread over a lot of small firms.


In US were Investments were Software $178 Billion (186 Firms), Biotech&Pharma $121 Billion (268 Firms, Hardware Technology $109.2(71 Firms) and the remaining $ 140 billion in other sectors which is almost identical to or less than Chinese investments in those sectors, and no investment in digital communication. As the bell tolls, the question is Can US remain competitive by just defining the future and dropping out of traditional industries, including mobile communication.

The one key statistic that stands out in this study is “Boeing Annual R&D Expenses is $9.8 Billion” no wonder the company is struggling.

#R&D #US #Innovation #industrialinnovation

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