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About science and economic development - Volodymyr Haustov

Editorial team•
About science and economic development - Volodymyr Haustov

The modern stage of economic development is characterized by the spread of innovations, the rapid development of systems for the protection and protection of intellectual property (IP). Now information, the latest technologies have become more valuable than gold and oil. IP has long ceased to be just protection against copying. Today, it is a powerful capital, the main force of development and a tough tool of global competition. The position of any country in the world increasingly depends on how successfully it is able to transform scientific discoveries and inventions into new technologies, products and economic growth. For this, legal, economic and organizational mechanisms to support innovation should work effectively.

A number of countries, such as China, Japan, and Korea, have become the leading countries in the world due to the fact that IP has become the main force of development. The development of IP in these countries took place thanks to the development of education and science, support of scientific research. These countries have become technological leaders largely due to systemic support for science, education and innovation. And the main role in this is played by intellectual property, which protects technical ideas and makes it possible to transform the results of scientific activity into an economic effect.

Protection of IP has become a key point of innovative activity, as it allows the return of income from investments in science and profit from innovations. At the beginning of the 21st century, IP began to play an important role in creating profits and developing competition. Now, IP has become a means of stimulating competition, promoting innovation processes. Modern processes of globalization unfold in the conditions of a new economy, where information and the latest technologies become the main factor of production, the importance of IP as a commodity and capital increases. In the global economy, IP is significant capital. Under such circumstances, a country's place in the world increasingly depends on an effective institutional system of IP protection, in which economic, legal and organizational mechanisms are in close interaction, ensuring innovative development.

According to the WIPO report "World indicators of activity in the field of intellectual activity" for 2024, inventors filed the largest number of applications for patents for inventions. 3.7 million applications for patent registration under national and international procedures were submitted, 4.9% more than a year earlier. China, the USA, Japan, the Republic of Korea and Germany are the leaders in the total number of submitted applications for invention patents (Table 1), that is, the countries that are the leaders in terms of investments in research and development. China plays the role of the undisputed world leader in patenting. More than 49% of the total applications were filed by Chinese inventors. China is 3.03 times ahead of the second-placed United States and 30.85 times ahead of Germany. And if China increased the number of applications by more than 150,000 compared to the previous year, the USA only by almost 5,000. Unfortunately, WIPO does not keep separate statistics for the EU, using data only for EU member countries.  And of these, Germany is the only one in the top ten with 59,262 applications.  And in the top twenty are Great Britain (11) with 18,952 applications, France (14) with 14,129 applications, Italy (18) with 10,308 applications. At the same time, Asian countries make up more than half of the top twenty.

Ukraine in this WIPO ranking took 35th position with the number of applications — 2,559. Moreover, it should be noted that in recent years, the figure of up to 3,000 applications per year for inventions has become commonplace for Ukraine.

Table 1

Positioning of the world's leading countries by the number of submitted of patent applications in 2024

colspan="1" rowspan="1">

601

colspan="1" rowspan="1">

–246

colspan="1" rowspan="1">

–1,038

colspan="1" rowspan="1">

–1,437

colspan="1" rowspan="1">

1,610

rowspan="1">

34

colspan="1" rowspan="1">

1,066

rowspan="1">

173

rowspan="1">

–610

rowspan="1">

–32

No. пп

Country

Applications by offices

Total

residents

Non-residents

Changes compared to previous year

1.     China 053

150 353

2.     

USA

972

3.     Japan 686

6,722

4.     

Republic of Korea

246,245

195,786

50 459

2,935

5.     India 940

14,859

6.     

7.     

8.     

9.     Russian Federation 26,698 colspan="1" rowspan="1">

6

10.              

Brazil

25,597

5,752

19,845

228

11.              

United Kingdom

18,952

11,105

7 847

–1,011

12.              Mexico colspan="1" rowspan="1">

559

13.              

Hong Kong, Ave. China

15,940

495

15,445

–1 844

14.              

15.              Singapore colspan="1" rowspan="1">

–346

16.              Indonesia colspan="1" rowspan="1">

348

17.              

18.              

Italy

10,308

9 120

1 188

685

19.              

colspan="1" rowspan="1">

446

20.              

South Africa

8899

350

8549

–1,830

21.              

rowspan="1">

122

22.              

rowspan="1">

–195

23.              Israel 8,262 colspan="1" rowspan="1">

–991

24.              Saudi Arabia 8,029 colspan="1" rowspan="1">

945

25.              

26.              New Zealand 5,962 5,962 colspan="1" rowspan="1">

–297

27.              Philippines colspan="1" rowspan="1">

–318

28.              

29.              

rowspan="1">

195

30.              

31.              

32.              

33.              The Netherlands 3,047 colspan="1" rowspan="1">

–47

34.              

rowspan="1">

97

35.              

rowspan="1">

–352

Total

3,725,000

2,702 600

1,022,400

 

Source: World Intellectual Property Indicators. Table A60. Patent applications by office and origin, 2024.

In 2024, the total number of applications under the PCT international procedure reached 273,900, which is 0.5% more than in 2023. China remained the leader with 70,160 applications, accounting for 25.62% of global applications. It was followed by the USA (54,087 applications), Japan (48,397), the Republic of Korea (23,851) and Germany (16,721). Ukraine took 43rd place in this rating (Table 2). That is, in filing applications under the PCT procedure, China was ahead of the USA by almost 1.3 times, and Germany, as the most active member of the EU in patenting, by almost 4.2 times. And if we compare the results of 2023 and 2024, then China demonstrated a growth rate higher than the global rate by 2.1%. With a 2.1% drop in applications in the US and a slight decline in Germany. In the number of applications filed under the PCT system, China increased filings by 633 applications, while the USA decreased by 1,533 applications.

 Table 2

International patent applications by country of origin (PCT system), number in 2023 and 2024

rowspan="1">

1484

Country

2023

2024

Growth, number

1.     China

69,527

70,160

633

2.     USA

55,618

54,087

-1531

3.     Japan

48,992

48,397

-595

4.     Republic of Korea

22,277

23,851

1,574

5.     Germany

16,944

16,721

-223

6.     France 7,911 7,911     United Kingdom 5,567     Switzerland

5,398

5,324

-74

9.     India

3,725

4,552

827

10. Netherlands

4,256

4,310

54

11. Sweden

4,301

3,762

-539

12. Italy

3,104

3,099

-5

13. Canada

2,399

2,388

-11

14. Finland

1,540

2,004

464

15. Turkey

1913

1985

72

16. Singapore

1,811

1,771

-40

17. Israel

1,904

1,715

-189

18. Australia

1,496

1,572

76

19. Denmark

1,536

1,539

3

20. Austria

1,548

1,532

-16

21. Spain

1,465

1,528

63

22. Belgium

1,342

1,310

-32

23. Ireland

769

729

-40

24. Norway

686

718

32

25. Russian Federation

681

709

28

26. Brazil

514

637

123

27. Saudi Arabia

392

492

100

28. Iran

350

425

75

29. Luxembourg

309

396

87

30. Poland

370

340

-30

31. New Zealand

278

286

8

32. Portugal

224

239

15

33. Chile

179

227

48

34. South Africa

188

174

-14

35. Hungary

149

172

23

36. Liechtenstein

171

166

-5

37. Mexico

149

163

14

38. Thailand

144

163

19

39. UAE

135

160

25

40. Czech Republic

179

148

-31

41. Slovenia

95

122

27

42. Malaysia

127

121

-6

43. Ukraine

90

112

22

 

This indicator reflects not only the inventive activity of the country, but also its ability to transform scientific developments into a competitive export product.

South Korea showed the greatest increase among the leading countries (+1574 applications), while the USA and Japan, on the contrary, showed a decrease. Across Europe, the picture was mixed, with growth in France and Finland combined with decline in Germany, Sweden and Italy.

But the true scale of China's success becomes clear when looking at the dynamics of PCT applications for the world's top five countries over the past three decades. Table 3 shows China's extraordinary efficiency in building a system of intellectual property protection and stimulating invention. In the 30 years since 1994, China has increased the annual number of PCT applications by 661.9 times, Korea by 124.2 times, Japan by almost 21 times, Germany by 3.94 times, and the United States by 3.62 times.

 

Table 3

Dynamics of PCT applications for the five main countries of origin, 1994-2024

colspan="1" rowspan="1">

38,015

Year

USA

China

Japan

Germany

Republic of Korea

1994

14,949

106

2,305

4,244

192

1996

20,829

123

3 939

6 265

306

1998

27,958

346

782

9,569

12,581

1,582

2002

41,316

1,015

14,061

14,324

2,520

2004

43,395

1,707

20,268

15,216

3,555

2006

51,301

3,930

27,024

16,734

5,946

2008

51,667

6,119

28,763

18,856

7,902

2010

45,089

12,304

32,216

17,560

9,604

2012

51,857

18,621

43,523

18,749

11,787

2014

61,489

25,542

42,381

17,983

13,118

2016

56,593

43,092

45,210

18,308

15,555

2018

56,16253,463 49,704 920

2020

58,433

68,928

50 583

18,491

20,050

2022

58 839

70,016

50,529

17,464

22 013

2024

54 087

70 160

48 397

16,721

23,851

 

The distribution of PCT applications by type of applicant is important for understanding the effectiveness of the national policy on stimulating inventions and the development of the intellectual property protection system (sectors of the economy): business sector, individual, university sector and the sector of government and public research organizations (PRO).

The data of Table 4 show certain changes in the worldwide distribution of PCT applications by type of applicant in 2010-2024: the specific weight of the business sector increases, the activity of individual applicants decreases several times, the activity of applicants from the sector of government and public research organizations slightly decreases, the activity of university applicants has an oscillatory character.  Which indicates a higher level of research, which requires more capital investment in their implementation and the inability of individual applicants to carry out such research due to lack of necessary funds. As well as the growing interest of business in conducting research, preparing and submitting applications for patents and obtaining profit from the use of patents.

Table 4

Dynamics of filing applications under the PCT procedure by type of applicant (sector) in 2010-2024

colspan="1" rowspan="1">

5.2

colspan="1" rowspan="1">

1.7

Year

Business

Individual

University

2.6

2011

83.4

8.7

5.3

2.6

2012

84.4

7.8

5.3

2.5

2013

85.0

7.6

5.0

2.3

2014

85.1

7.8

4.8

2.3

2015

85.1

7.6

5.1

2.2

2016

85.3

7.5

5.1

2.0

2017

84.8

8.0

5.3

2.0

2018

85.3

7.5

5.3

1.9

2019

86.4

6.2

5.6

1.9

2020

86.7

5.5

5.8

1.9

2021

87.1

5.0

6.1

1.8

2023

88.2

3.9

6.1

1.8

2024

89.1

3.5

5.6

1.8

      

There is a significant difference in the distribution of PCT applications by type of applicant by country depending on the level of development and income group (table. 5) 25px;">

Year

Business

Individual

University

PRO

High-level economies of income

1.      USA

86.6

3.5

8.7

1.2

2.      Japan

colspan="1" rowspan="1">

3.      Republic of Korea

84.9

4.8

7.6

2.7

4.      Germany

92.7

2.2

2.4

2.6

5.      France

88.7

2.0

2.4

6.9

6.      United Kingdom

87.4

4.1

7.9

0.6

7.      Switzerland 94.7 colspan="1" rowspan="1">

8.      Sweden 98.6 rowspan="1">

9.      Netherlands

93.5

1.1

4.0

1.4

10. Italy

84.0

8.7

5.4

1.8

11. Canada

80.3

9.5

7.9

2.3

colspan="1" rowspan="1">

12. Israel

78.8

8.1

12.2

0.9

13. Finland

96.5

0.6

2.9

14. Singapore

colspan="1" rowspan="1">

15. Australia

74.5

11.9

10.3

3.3

16. Austria

colspan="1" rowspan="1">

17. Denmark 91.7 colspan="1" rowspan="1">

18. Spain

colspan="1" rowspan="1">

19. Belgium

88.6

1.7

5.8

3.9

20. Ireland

92.3

2.9

4.8

-

Middle-income economies

1.      China

colspan="1" rowspan="1">

2.      India

63.5

28.1

3.8

4.6

3.      Turkey

colspan="1" rowspan="1">

4.      Brazil

62.8

35.7

0.4

1.1

5.      Iran

3.6

96.4

-

6.      South Africa

39.0

37.4

20.9

2.7

7.      Mexico

32.7

60.0

6.7

0.7

colspan="1" rowspan="1">

8.      Thailand

67.6

20.9

11.5

-

9.      Malaysia

78.2

17.6

4.2

10. Ukraine

colspan="1" rowspan="1">

11. Colombia

37.9

51.7

10.3

-

12. Morocco

colspan="1" rowspan="1">

13. Mauritius

100.0

-

-

-

14. Peru

31.0

20.7

48.3

15. Serbia

colspan="1" rowspan="1">

16. Argentina

23.1

42.3

7.7

26.9

17. Indonesia

73.9

13.0

13.0

-

18. Egypt

13.0

87.0

-

-

19. Kazakhstan

38.1

52.4

9.5

-

20. Vietnam

47.4

52.6

-

-

For countries with a high level of income, the specific weight of applications by business sector inventors is 80-98.6%. Individual filings are significant in Spain (18.3%), Australia (11.9%), Canada (9.5%) and Italy (8.7%). Relatively high activity of filing patent applications is shown by inventors in the university sector of Singapore (14.2%), Israel (12.2%), Spain (11.9%), Australia (10.3%) and the USA (8.7%). Inventors from Singapore (6.7%), France (6.9%) and Spain (6.7%) are most active in filing applications in the sector of government and public research organizations. Middle-income countries have a heterogeneous distribution of applications by sector. Thus, in China, more than 90% of applications are submitted by business sector inventors. In Ukraine, more than 70% of applications are submitted individually. The reasons for the predominant individual submission of applications in Ukraine may be: the exclusion of business from the use of science for its development, the focus of business mainly on trade operations, the orientation of science not on the implementation of specific results, but on patenting for the sake of the scientific process, patenting by individuals of the results of scientific activity within the framework of the performance of official tasks using the equipment of scientific institutions when working in scientific institutions.

The dominance of business in international patenting is especially noticeable at the level of individual companies (table 6). The list of world leaders in patenting today is mainly formed by Asian and American technology giants. Among the 25 companies that filed the most international patent applications in 2024, eight are from Japan, seven from China and four from the United States. And the first ten companies include 4 Chinese, 2 Korean, 2 Japanese and only 1 each from the USA and Sweden.

Europe is represented much more modestly: only one company from Germany and Sweden entered the top 25. For several years in a row, the top lines of the rating have been occupied by Chinese Huawei and South Korean Samsung Electronics. This indicates a weakening of the position of European business in global technological competition compared to the times when companies such as Siemens, Philips and Bosch were among the world leaders in patenting, and Siemens also led these rankings for many years in a row.

Table 6: Top 25 companies of the business sector by the number of patent applications submitted under the PCT procedure, 2024 25px;">

No

Company

Country

Filing applications for PCT

2022

2023

2024

1

HUAWEI TECHNOLOGIES CO., LTD.

China

7,689

6,494

6 600

2

SAMSUNG ELECTRONICS CO., LTD.

Republic of Korea

4 387

3,924

4,640

3

QUALCOMM INCORPORATED

USA

3,855

3,410

3 848

4

LG ELECTRONICS INC.

Republic of Korea

1 793

1,887

2,083

5

CONTEMPORARY AMPEREX TECHNOLOGY CO., LTD. LIMITED

China

266

1 799

1 993

6

BOE TECHNOLOGY GROUP CO.,LTD

China

1,884

1,988

1 959

7

MITSUBISHI ELECTRIC CORPORATION

Japan

2 320

2 152

1 956

8

BEIJING XIAOMI MOBILE SOFTWARE CO., LTD.

China

913

1,603

1,889

9

TELEFONAKTIEBOLAGET LM ERICSSON (PUBL)

Sweden

2 158

1,863

1,886

10

NIPPON TELEGRAPH AND TELEPHONE CORPORATION

Japan

1,884

1,760

1,877

11

ZTE CORPORATION

China

1 479

1 738

1,851

12

PANASONIC INTELLECTUAL PROPERTY MANAGEMENT CO., LTD.

Japan

1,776

1,722

1,718

13

LG ENERGY SOLUTION, LTD.

Republic of Korea

1 186

1 423

1 452

14

GUANG DONG OPPO MOBILE TELECOMMUNICATIONS CORP., LTD

China

1,963

1,766

1,252

15

NEC CORPORATION colspan="1" rowspan="1">

Japan

1,428

1,592

1,241

16

MICROSOFT TECHNOLOGY LICENSING, LLC

USA

1 271

1 350

1 237

16

ROBERT BOSCH CORPORATION

Germany

1 290

1 307

1 237

18

GOOGLE INC.

USA

830

903

1 236

19

VIVO MOBILE COMMUNICATION CO., LTD.

China

1 515

1 631

1 212

20

APPLE INC.

colspan="1" rowspan="1">

21

SONY GROUP CORPORATION

Japan

1 513

1 433

1 134

22

NTT DOCOMO, INC.

Japan

764

1,016

976

23

MURATA MANUFACTURING CO., LTD.

Japan

1,043

1 051

867

24

TENCENT TECHNOLOGY (SHENZHEN) COMPANY LIMITED

China

690

677 colspan="1" rowspan="1">

832

25

FUJIFILM CORPORATION

Japan

1 181

826

804

World experience shows that patent activity is not only an indicator of a country's scientific potential, but also the result of effective interaction between science, education, the state and business. China, South Korea, Japan and the USA demonstrate different models of economic development, but they have one thing in common: business plays a key role in the creation and commercialization of new technologies. That is why these countries occupy leading positions in the field of international patenting and form a significant part of the world technological order.

     The example of China is especially indicative. Over the past three decades, the country has not only become a world leader in the number of patent applications, but has also created a system in which intellectual property has become one of the key tools of economic development. High patent activity does not automatically guarantee future success, but it indicates the country's significant scientific and technological potential and readiness to compete on global markets.

Ukraine is gradually losing ground in global technological competition not only due to insufficient funding of science. Another problem is that scientific developments rarely translate into new products, technologies or businesses. Business has little interest in the implementation of research results, and the system of evaluation of scientific activity is largely focused on the number of publications, "sophisticated" articles, and not on the commercialization of intellectual property, which leads to the substitution of the use of specific results of scientific activity in the form of patent licenses for "sophisticated" publications. Absence in the results of scientific activity, which are included in the results of state certification, even the concept of "patent license" with dominance in the evaluation scores of "scopus" publications

       In addition, Ukrainian patenting is largely concentrated in traditional industries - metallurgy and mechanical engineering, while information technologies, biotechnology and new materials are increasingly becoming global drivers of innovation. The situation is also complicated by the practical destruction of branch science, as the main producer of IP, and the lack of specialists capable of turning a scientific idea into a finished technology or product.

It is on whether Ukraine will be able to establish a connection between science and economy that its place in global technological competition will largely depend.

An analysis of the development of IP in the world shows China's undeniable advantage over other countries in the world in patenting industrial property objects, which can position China as a technological world leader. And since IP can be considered as an indicator of future economic development, China already has the prospects of a powerful economic state for a number of years to come.

Volodymyr Haustov, Scientific Secretary of the State Institution "Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine".