AP IP Scorecard Jan 2011 GFIP Presentation

Asia Pacific IP Scorecard 2009

A Project Sponsored by the

IP Academy (Singapore)

Poh-Kam WONG

January 2011

1

January 2011

NUS Entrepreneurship Centre


Notes on Methodology

• Uses data on patents granted by the US Patents and Trademark Office (USPTO) between 1976 and 2009

• The national affiliation(s) of a patent is determined by the nation(s) of residency of its inventor(s).

• To define Asia Pacific patents, the “at least one inventor”convention is adopted. Under this convention, a patent is attributed to an Asia Pacific economy if at least one inventor is resident in that

Asia Pacific IP Scorecard 2009 – A Project Sponsored by the IP Academy (Singapore) 2

convention is adopted. Under this convention, a patent is attributed to an Asia Pacific economy if at least one inventor is resident in that economy.

• “Forward Citations” are used to construct proxy indicators of patent quality. Forward Citations are citations received by a patent from other patents issued by the USPTO, as at January 2010.

• “Backward Citations” are used to construct proxy indicators of the sources of scientific and technological knowledge embodied in patents. Backward Citations are the references cited in a patent as “prior arts”, including both citations to other patents and to non patent references such as publications


Overview• Patenting Output

– Share of Asia Pacific-invented patents in total USPTO patents granted

– Patenting Propensity (patents per million population)

– Growth in Patents Output

– Share of Indigenously-owned patents in Asia Pacific invented patents

• Quality of Patenting

– Average citations received

– Relative citations ratio


– Relative citations ratio

• Scientific content of Patents

– Bibliographic citations ratio

– Share of science-based patents in patents portfolio

• Technological composition of Patents

– Degree of concentration

– Change in technological composition

• Assignees of Singapore-invented patents

– Top assignees with cumulative portfolios of Singapore patents

– Prolific assignees in recent years


Patent Output


Patent Output


Patenting Output in Asia Pacific Economies, 1980-2009

40000

50000

60000

70000

Other Asia Pacific Japan


0

10000

20000

30000

40000

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09


Share of AsiaPac invented patents in the world has increased between 2005 & 2009

• In 2009, patents invented in Asia Pacific economies account for one third of world’s total patents granted by the USPTO9.42

13.3225

30

35

40

Rest of Asia

AP Total =

29.86%

AP Total =

33.44%


the USPTO

• Japan produces one fifth of the world’s patents, a figure maintained since 2005

• Patent output from other Asia Pacific economies has increased from 9% in 2005 to 13% in 2009

20.44 20.12

9.4213.32

0

5

10

15

20

25

2005 2009

Rest of AsiaPacific

Japan


Patent Output in non-Japan Asia Pacific Economies, 2005 and 2009

2.98

3.91

0.61

0.74

0.33

5.1

4.29

1.62

0.91

0.51

South Korea

Taiwan

China

Australia

India

• In terms of absolute number of patents, Singapore ranks 7th in the Asia Pacific in 2009, contributing 0.32% of total patents in the world (Singapore’s ranking in 2005 was 8th)

• China has registered the


0.3

0.31

0.1

0.08

0.02

0.02

0.02

0.51

0.32

0.26

0.12

0.12

0.03

0.02

0.02

0 1 2 3 4 5 6

Singapore

Hong Kong

New Zealand

Malaysia

Thailand

Philippines

Indonesia

2005 2009

Share of world total (%)

• China has registered the largest jump in patents output, contributing 1.6% of total patents in 2009 (ranking 4th), compared to only 0.6% in 2005 (ranking 5th).

• Expansion of patenting in Asia Pacific economies is largely in East Asia; minimal contribution by the developing ASEAN economies


Patenting Propensity in the East Asian economies has

increased substantially in the last 5 years

269.6

253.1

96.5

105.3

57.7

70.9

358.7

303.9

201.7

133.5

82

Taiwan

Japan

South Korea

Singapore

Australia

Hong Kong

• Patenting Propensity is measured as the number of patents invented in an economy per million population. It normalizes for different levels of patenting output in economies of varying sizes.


70.9

40.1

5.4

0.7

0.6

0.5

0.3

0.1

69.9

56.2

8.3

2.3

0.9

0.8

0.4

0.1

0 100 200 300 400

Hong Kong

New Zealand

Malaysia

China

Thailand

India

Philippines

Indonesia

2005 2009

Patents per million population

sizes.

• In terms of absolute number of patents, Singapore ranks 4th in the Asia Pacific in 2009, producing 134 patents per million people, an increase from 105 patents in 2005

• Apart from Hong Kong, all the East Asian economies registered large increases in patenting propensity.


China is the fastest-growing patents producer in the Asia Pacific, averaging 36% growth annually over the last five years

20.2

5.2

-9.6

6.4

23.1

11.9

35.9

20.7

19.0

18.7

17.6

China

South Korea

Thailand

Philippines

India

Global Average = 5.6% • China leads as the fastest growing patents producer in the Asia Pacific, with a five-year growth trend averaging 36% p.a., up from 20% p.a. in 2005

• India, previously ranked first in terms of five-year growth trend has slipped to 5th place overall, but still


11.9

0.6

-2.7

-1.5

6.7

-2.1

18.1

-4.4

17.4

12.4

10.5

8.5

8.1

5.3

3.9

2.3

-20.0 -10.0 0.0 10.0 20.0 30.0 40.0

Malaysia

Australia

New Zealand

Taiwan

Singapore

Japan

Indonesia

Hong Kong

2001-2005

2005-2009

Annual Average Growth (%)

growth trend has slipped to 5th place overall, but still registers very strong growth in patents output (18% growth p.a.)

• Singapore’s patents output grew at 8% p.a. in the last five years, up from 7% in the previous five year period.

• Many of the small ASEAN economies register strong growth performance as they begin from relatively small bases


Domestic Ownership of Patents invented in the Asia Pacific (excluding Japan) has increased since the 1980s

81.1

56.6

89.491.1

57.5

62

90.1

60.8

65.5

94.2

74.773.0

60

70

80

90

100

1986-1995

1996-2000

2001-2005

2006-2009

Share of Domestically Owned Patents (%)• Domestic Ownership

of locally invented patents indicates the extent to which foreign versus indigenous interests control the inventions emerging from an economy.

• Across the Asia Pacific economies as


23.9 25.322

46.347.244.1

23.3

41.7

51.0

46.5

26.6

50.347.1

44.4

36.1

29.9

0

10

20

30

40

50

South

Korea

Taiwan Hong Kong Singapore China India Asia Pacific

Ex Japan

Pacific economies as a whole, domestic ownership of local patents has increased subtantially.

• Domestic ownership of Singapore-invented patents increased substantially in the mid 1990s and has stabilized at around 45%.


The surge in patenting in China in the last few years is the result of a large increase in patenting by indigenous organizations

96.0

90.1

60.8

58.8

51.3

51.0

96.2

94.2

74.7

66.7

51.6

Japan

South Korea

Taiwan

Australia

New Zealand

• One third of China’s patents invented in the last 4 years are assigned to domestic firms and organizations (ranking 8th), up from 27% in the previous 4-year period (ranking 10th)

• In contrast, domestic ownership of India invented


51.0

46.5

26.6

50.3

17.6

45.6

18.9

2.3

47.1

44.4

36.1

29.9

25.1

24.0

13.6

3.7

0.0 20.0 40.0 60.0 80.0 100.0 120.0

Hong Kong

Singapore

China

India

Thailand

Indonesia

Malaysia

Philippines

2001-2005

2006-2009

Share of Domestically Owned Patents (%)

ownership of India invented patents in recent years has dropped to 30%, down from 50% in the early to mid 2000’s

• Domestic ownership of patents invented in Singapore maintains at slightly lower than 50%


Patent Quality


Patent Quality


Patents invented in Singapore in the last 10 years have the highest number of citations on average among the Asia Pacific economies

3.65

3.06

1.71

3.11

3.46

3.58

3.31

2.87

2.84

2.78

Singapore

Hong Kong

India

Taiwan

Japan

World Averages

4.92 (00-09)

• Average citations per patent is the most basic measure of patent quality and is obtained by taking the number of citations received by patents divided by the total number of patents in a time period.

• Singapore continues to lead the other Asia Pacific


2.21

2.86

2.45

2.72

2.81

1.77

3.33

2.78

2.52

2.49

2.29

2.05

1.93

1.78

2.74

1 2 3 4 5

New Zealand

South Korea

Thailand

Australia

Malaysia

China

Asia Pacific

1996-2005

2000-2009

Citation received per patent

4.0.3 (96-05)

• Singapore continues to lead the other Asia Pacific economies with highest average number of citations received for patents invented in the last 10 years.

• While the quality of China’s patents has increased only very slightly, there has been a great increase in the average citations received by India-invented patents

*excludes economies

with small # of patents


Relative to output, the quality of patents invented in Singapore is higher than in other Asia Pacific economies, maintaining Singapore’s leading position from 2005

0.91

0.76

0.43

0.77

0.86

0.64

0.58

0.57

0.56

0.73Singapore

Hong Kong

India

Taiwan

Japan

• Relative Citation Index (RCI) compares economy’s citation frequency relative to its patenting output. It is obtained by dividing the share of citations received with the share in total patents. Higher values of the Relative Citation Index


0.71

0.68

0.61

0.55

0.44

0.70

0.56

0.53

0.52

0.45

0.41

0.41

0.41

0.00 0.20 0.40 0.60 0.80 1.00

Japan

South Korea

Australia

Thailand

New Zealand

China

Malaysia

1996-2005

2000-2009

Relative citation index

Relative Citation Index indicate higher quality.

• Singapore’s patents invented in the last ten years have the highest Relative Citation Index value among all the Asia Pacific economies. This maintains Singapore’s number 1 ranking from 2005.

• While most Asia Pacific economies registered declining RCI values, Indian patents have increased their relative quality

*excludes economies with small #

of patents


Scientific Content of Patents


Scientific Content of Patents


The scientific content of patents invented in Asia Pacific economies has increased since 2005 but is lower than patents from outside this region

14.6

13.92

8.66

9.76

8.55

12.73

11.82

11.31

11.06

18.12New Zealand

Australia

Singapore

Japan

India

15.7% (06-09)

16.7% (01-05)

• The scientific intensity of patents indicates the degree to which there is a scientific base for inventions. It is conjectured that patents which rely on scientific sources that are publications directed are more science-intense, and hence more cutting-edge, than patents that rely on technological knowledge sources


8.55

6.98

6.68

5.34

6.92

5.11

2.43

8

11.06

10.48

8.22

6.78

6.37

6.26

8.82

3.29

0 5 10 15 20

India

South Korea

China

Malaysia

Thailand

Hong Kong

Taiwan

Asia Pacific

2001-2005

2006-2009

Bibliographic Citations ratio (%)

World Averages

knowledge sources• Bibliographic Citations Ratio

(BCR) is a proxy measure of science intensity and measures the ratio of non-patents references (NPRs) to total backward citations reflecting a patent’s “prior arts”

• Singapore’s BCR value has risen from 8.7% in 2005 (ranking 4th) to 11.8% in 2009 (ranking 3rd)

• Across most Asia Pacific economies, scientific content has increased in the last 5 years, although the region overall lags the global average*excludes economies with small #

of patents


24.7

11.7

10.7

4.1

4.1

4.9

15.8

8.6

6.8

5.5

17.6India

New Zealand

Australia

Singapore

Thailand

China

• A Bibliographic Citations Ratio value of 50% or greater is indicative of a science-based patent which is more reliant on science-based Non Patent References than technology-based citations to patents

• Share of Science Based Patents indicates the

Science-based patents form an increasingly large share of patents invented in Asia Pacific economies


4.9

5.5

3.7

3.1

2.6

1.2

5.4

5.5

5.2

4.6

3.9

2.4

6.4

1.7

0.0 5.0 10.0 15.0 20.0 25.0 30.0

China

Japan

South Korea

Hong Kong

Malaysia

Taiwan

Asia Pacific

2001-2005

2006-2009

Science-Based patents as share of total patents(%)

Patents indicates the proportion of an economy’s patents that have high scientific content, with BCR value of 50% or higher.

• India and the Oceania economies have the highest proportions of science-based patents in the stock of recently invented patents

• Singapore’s share of science-based patents has risen from 4.1% in 2005 (ranking 6th) to 6.8% in 2009 (ranking 4th)

*excludes economies with

small # of patents


Technological Composition of Patents


Technological Composition of Patents


In many Asia Pacific economies, patenting

has become more specialized in recent years

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

0.5

1976-2000 2001-2005 2006-2009

Herfindahl Index of Concentration


0

0.05

0.1

Au

str

alia

Ch

ina

Ho

ng

Ko

ng

Ind

on

es

ia

Ind

ia

Ja

pa

n

Ko

rea

Ma

lay

sia

Ne

w

Ze

ala

nd

Ph

ilip

pin

es

Sin

ga

po

re

Ta

iwa

n

Th

aila

nd

• Herfindahl Index of Technological Concentration measures the degree to which patents are evenly distributed in different technological areas. Higher values of the Herfindahl Index indicate a greater degree of concentration of patents in a small number of patent classes.

• Generally, patents invented in the Asia Pacific have become more concentrated over the years.

• In the last 4 years up to 2009, Singapore ranked 2nd in the Asia Pacific in terms of technological concentration. This maintains Singapore’s position from the period 2001-2005, when Singapore also ranked second.


Technological composition of China’s and India’s

patents has changed considerably in recent years

7%

5%

33%

23%

25%

19%

2%

5%

27%

51%

50%

11%

11%

9%

5%

6%

6%

5%

Singapore 2001-2005

Singapore 2006-2009

India 2001-2005

• In India, there has been a large shift away from Chemical and Drugs & Medical patents towards patents in the Computer & Communications field. 43% of recent patents in India are in this area

• In China, more than one third of patents are in Electrical &


18%

11%

7%

43%

12%

24%

15%

8%

5%

16%

33%

35%

4%

13%

10%

22%

18%

3%

0% 20% 40% 60% 80% 100%

India 2006-2009

China 2001-2005

China 2006-2009

Chemical Computers & Communications

Drugs & Medical Electrical & Electronic

Mechanical Others

of patents are in Electrical & Electronics. However, since the early part of the decade, Chinese patents have made a significant shift towards the field of Computer & Communications.

• In Singapore, there has been a slight increase in the share of Drugs & Medical patents in recent inventions. Patents in the area of Electrical & Electronics continue to dominate the patents portfolio


Ownership of Singapore Patents


Ownership of Singapore Patents


Top 20 Assignees of Singapore Invented Patents (Cumulative 1976-2009)� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �� !�"��#$� %�� &� �� '� �� (��)��*�� +,�+- �� )�� .��%��/%�$��0�� (��


� .��%��/%�$��0�� (�� &��'� �� 1��'�� &��0�� '��2 3�� &� �� '��45�� +��6��)� �� '�*�� 7�� '��*&� �� &��)��'�� +&'��(8 (�� +�)�� &� ��9�)� ��


The pattern of institutional ownership of Singapore

invented patents has changed in recent years

• A*STAR has emerged in the last 3 years as the top patenting organization in Singapore, overtaking Chartered Semiconductor which had held the top position since the mid 1990s

Organization Country

Patent Count

2007-2009

Rank for

2007-2009

Rank for

2001-2006

A*STAR Singapore 100 1 9

Micron Technology Inc USA 96 2 4

Top 10 Assignees of Singapore Patents 2007-2009


position since the mid 1990s

• In the 3 year period 2006-2009, three of the top 5 patent assignees are local organizations, breaking the dominance of USA companies observed in earlier periods

• This recent period saw the emergence of Stats Chippac, a Singapore headquartered company, as a prolific patenting organization

Micron Technology Inc USA 96 2 4

Chartered Semiconductor Singapore 95 3 1

Creative Technology Singapore 84 4 11

Seagate Technology USA 71 5 2

Marvell International USA 70 6 -

Stats Chippac Singapore 66 7 -

National University of

SingaporeSingapore 50 8 5

Infineon Technologies Germany 44 9 13

Hewlett-Packard Company USA 43 10 3


Summary of Key Findings


Summary of Key Findings


Summary of key findings

• The contribution of Asia Pacific economies to world patenting is increasing in significance

– Including Japan, the region contributes one third of the world’s patent output in 2009 (13% if Japan is excluded)

• There is still wide divergence in patenting propensity across the region:

– Japan and Taiwan produce over 300 patents for every million persons in their populations

– The comparable figures for India and the ASEAN economies (except for Malaysia) show fewer than 1 patent invented per million population

• There has been a large surge in patenting in China in the last few years


• There has been a large surge in patenting in China in the last few years

– This is attributable in part to a great jump in patenting activities by indigenous Chinese firms and organizations

– While India has also experienced substantial growth in patenting output, its growth trajectory is overshadowed by China

• Other than China, there has been an increase in indigenous ownership of patents in a number of other Asia Pac economies (Taiwan, Korea, Australia, Thailand),

– However, foreign organizations are growing in importance in India, Malaysia and Indonesia.

– The share of foreign-owned patents in Singapore and Hong Kong has been maintained


Summary of key findings (cont’d)

• The quality of Asia Pacific patents as measured by patent citations (proxies technological influence) varies considerably across the different economies– Relative to the level of patenting output, Singapore’s patents are of the highest

quality in the region, a position maintained since 2005– Patents invented in India have registered significant improvement in quality.

This is attributable to the increased concentration of ICT-related patents and the presence of highly-cited ICT patents in India’s patents portfolio

• The scientific content in Asia Pacific patents is on the rise– Patents from Oceania, India and Singapore have the highest scientific content


– Patents from Oceania, India and Singapore have the highest scientific content– Asia Pacific patents may be orientating towards more specialized, cutting-

edge or emerging technology areas where the technological influence of patents may be more limited in the short term (hence the decline in patents-based citations)

• Technological composition of Asia Pacific patents has become more concentrated over the years– Singapore has among the most technologically specialized patents portfolios

in the region (due to high concentration in the Electronics and ICT areas)– India’s patents have become increasingly dominated by Computers &

Communications patents, which now account for 43% of inventions– Over a third of China’s patents are in Electronics but there has been an

increase in Computers & Communications patents (now contributes 24%)


Summary of key findings (cont’d)

• The pattern of institutional ownership of Singapore invented patents has changed in the last 3 years:

– A*STAR is now the leading patenting organization in Singapore in terms of number of patents granted in the period 2007-2009

– Three of the top 5 assignees for patents granted in the last 3 years are local organizations (A*STAR, Chartered Semiconductor and Creative Technologies). This represents a change in the dominance of USA firms as the leading patent assignees of Singapore invented patents since the


as the leading patent assignees of Singapore invented patents since the 1990s.

• Singapore has generally maintained its position as among the top patent producing economies in the Asia Pacific IP Scorecard:

– 4th in the region in terms of number of patents produced per million population in 2009 (7th if not controlled for population size)

– However, Singapore’s short-term growth trend in patents production now lags behind several of the ASEAN economies that have small bases.

– 1st in the region in terms of quality of patents relative to output levels

– 3rd in the region in terms of scientific content of patents


THANK YOU


THANK YOU


USPTO and EPO comparisonPATENT COUNT RANK

Cumulative

USPTO Patents

1980-2009

Cumulative

EPO Patents

1980-2009

Cumulative

USPTO Patents

1980-2009

Cumulative

EPO Patents

1980-2009

Japan 745924 23043 1 1

South Korea 74163 1831 3 2

Taiwan 97490 341 2 6

Hong Kong 9430 79 6 12

Singapore 6226 149 8 7


Singapore 6226 149 8 7

Malaysia 1775 45 10 13

Thailand 765 134 11 8

Indonesia 353 95 13 11

Philippines 553 130 12 9

China 14297 354 5 5

India 6374 850 7 4

Australia 24310 901 4 3

New Zealand 3476 111 9 10

Documents

AP IP Scorecard Jan 2011 GFIP Presentation