Report and research methodology
When it comes to technology, ‘green innovation’, can be defined in a number of ways. Most broadly, green innovation can be any technology aimed at limiting negative environmental impact created by human activity. This could include technologies that help eliminate pollution, use resources more sustainably, handle waste more responsibly, recycle materials effectively, or, offer an alternative to fossil fuels.
In line with this broad definition, there are many technologies we could have explored in this edition of our annual report. As in previous editions, this report focuses on technologies being produced to address what are widely accepted as some of the most pressing environmental challenges facing us today, including:
- Reducing use of traditional plastics
- Controlling carbon emissions
- Developing sustainable energy sources
- Producing nutritious food, sustainably, for a growing population.
Data and datasets
Our patent activity insights are based, in part, on data from PatBase, a patent data and analytics platform, in combination with industry assessments and our experience as patent attorneys. The search criteria was developed using combinations of keywords and classifications. Varying filters were applied to the datasets during analysis, to pull out points of interest, in combination with the application of patent attorney judgement and the assessment of individual patent filings.
This report emphasises trends and specific points of interest. The objective is not to achieve exhaustive filing statistics for subject areas or assignees.
Due to an 18-month delay from filing to publication of a patent application, a full dataset for 2024 was not available at the time of publishing this report.
Unless indicated otherwise, this edition includes data through 31 December 2023.
Patent data as a barometer of innovation
We believe that, overall, there is a strong correlation between patent filing trends and meaningful technical progress. It is common for innovators to patent an invention only where it has potential commercial value that can be protected by a patent. However, at times, inventors are encouraged to file patents for other, non-commercial reasons.
For example, governments may implement policies that reward patent filing in the country, for reasons such as tax benefits or cash payments for the applicant. Cultural pressures can also encourage inventors to file patents to enhance their academic or institutional reputation. Of these, the offer of a significant cash payment for the filing of a patent application is the most likely to break the link between patent filing activity and meaningful technological progress.
In view of this complexity, the correlation between patent filing trends and meaningful progress in innovation should be taken as a general guide only. It is not possible to account for all of these additional considerations within the datasets, and we have not excluded any data for these reasons – with one exception.
Over the previous 15 years, national and local government policy in China has led to lump sum payments being offered to domestic applicants who file a Chinese patent application, with a further payment available for achieving a granted Chinese patent. This policy correlates with globally unprecedented levels of patent filing activity in China. Across all sectors, the number of year-on-year ‘invention’ patent filings originating in China is on average more than double the number originating across the rest of the world, combined. An unusually high proportion of these filings do not extend beyond China, and many applications have unusually narrow claims. Although it is difficult to assess, in view of these indicators it appears likely that many China-originating filings may have been driven by these state-offered cash incentives, rather than the normal commercial drivers outlined above.
For these reasons, unless indicated otherwise, we have not included China-only patent filings in the datasets. However, where a China-originating patent application includes at least one family member outside of China, the application was included in the dataset.
On 27 January 2021, the China National Intellectual Property Administration (CNIPA) announced that financial assistance for filing patent applications would cease as of June 2021. It was also announced that financial support for granted patents would be phased out over five years, coming to an end in 2025.
China’s remarkable decade-long run since 2009 in which the number of new patent applications originating in China increased by around twenty percent each year came to an abrupt end in 2019, where we saw a notable dip in new patent filings (ten percent), most likely related to COVID-19 provisions.
Since the end of the pandemic it has been interesting to observe the impact of the change in government policy on filing numbers originating from China . While the rate of growth since 2020 is lower than between 2009-2018, it is still strong (about seven percent per year).
It is likely that this continued growth is being driven by a number of policy factors, including explicit patent-volume related KPIs outlined in the 14th Five-Year Plan, a changing in subsidy structure rather than withdrawal (with an emphasis change to use and commercialisation over filing volume), continued tax incentives and a huge growth in IP-backed finance.
It will be fascinating to see how these strong drivers affect the Chinese-originating filing trends over the coming years.
Chris Mason Partner