Statistics Explained

Archive:Patent statistics background

Intellectual property rights and in particular patents provide a link between innovation, inventions and the marketplace. Applying for a patent makes an invention public, but at the same time gives it protection. A count of patents is one measure of a country’s inventive activity and also shows its capacity to exploit knowledge and translate it into potential economic gains.

In this context, indicators based on patent statistics are widely used to assess the inventive and innovative performance of a country. This article sketches the context and methodology of statistics on patent applications and grants in the European Union (EU) and some other European countries.

An analysis of the most recent EU data can be found in the Statistics explained dedicated to patent statistics.

Data sources and availability

From 2007 onwards, Eurostat’s production of European Patent Office (EPO) and United States Patent and Trademark Office (USPTO) data has been based almost exclusively on the EPO Worldwide Statistical Patent Database (PATSTAT). This was developed by the EPO in 2005, using their collection and knowledge of patent data.

European patent applications refer to applications filed directly under the European Patent Convention or to applications filed under the Patent Co-operation Treaty (PCT) and designated to the EPO (Euro-PCT), regardless of whether the patents are granted or not. For patent applications to the EPO all direct applications (EPO-direct) are taken into account, but among the PCT applications (applications following the procedure laid down by the PCT) made to the EPO, only those that have entered into the regional phase are counted. Patent applications are counted according to the priority date (the year in which they were filed anywhere in the world) at the EPO and are broken down according to the International patent classification (IPC). Applications are assigned to a country according to the inventor’s place of residence, using fractional counting if there are multiple inventors to avoid double counting. To normalise the data, the total number of applications at the EPO is divided by the national population and expressed in terms of patent applications per million inhabitants.

A patent application to the EPO can be valid in several countries and at most in all of the Contracting States of the European Patent Convention. In July 2009, the Convention was in force in 36 countries (all EU Member States plus Switzerland, Iceland, Liechtenstein, Norway, Monaco, San Marino, Croatia, the former Yugoslav Republic of Macedonia and Turkey). In addition to the Contracting States, three other countries (Albania, Serbia and Bosnia and Herzegovina) have concluded an ‘extension agreement’ with the EPO, by which these states can also be designated in a European patent application.

The falling trend in patent applications in the last years is linked to the length of patenting procedures and should not be interpreted as a real decline in patenting activity. For this reason the 2009 figures in Eurostat’s reference database are flagged as provisional or as estimates.

Patent indicators provide a measure of the innovative performance at country, firm or region level. Nevertheless, indicators are criticized as being “outdated”. This is due to the fact that information on patent applications is disclosed to the public 18 months or more after priority date. This issue is known as “timeliness”. In order to overcome this, Eurostat carried out a study where nowcasting methods have been discussed and developed.

The main purpose of this study it was to do the presentation of the existing methods for nowcasting of patent data to the European Patent Office (EPO) and the proposal of improved methods. An evaluation of these methods has been performed and conclusions regarding the most adequate methods for most of the countries have been drawn.

Moreover, an attempt to apply econometric models for nowcasting patent applications to the EPO was attempted as well as a comparison analysis. The existing econometric models are presented and 6 new models are detailed. A comparison analysis is performed and the strengths and weaknesses of each model is outlined.

In contrast to EPO data, the USPTO data refers to patents granted. Patents are allocated to the country of the inventor, using fractional counting in the case of multiple inventor countries. Comparisons between EPO and USPTO patents data should be interpreted with caution.

What is new?

KUL / EUROSTAT

'Patent Statistics at Eurostat: Methods for Regionalisation, Sector Allocation and Name Harmonisation'

The K.U.Leuven/EUROSTAT method for harmonized patent applicant’s names is a comprehensive method to achieve harmonization of patentee names in an automated way. This method was applied on all applicant names in the PERSON table of EPO’s Worldwide Patent Statistical Database (PATSTAT), edition April 2009, resulting in a new PERSON table with harmonized applicant names. The developed method is based on the contents of the name and country address of the applicant name, no other information is used in the harmonization process. All names are processed by a step-wise validation process based on rules: character cleaning; punctuation cleaning; legal from indication treatment; common company word removal; spelling variation harmonization; condensing; umlaut harmonization. About 4 000 search and replace rules are executed for every step to handle the particular issue.

See: 'Data production methods for harmonized patent statistics: Patentee name harmonization'

A first version of the method was applied on EPO and USPTO applicant names in 2006 (EUROSTAT Working Paper - Magerman, T., Van Looy, B. & Song, X. (2006) Data Production Methods for Harmonized Patent Indicators: Patentee Name Harmonization.

An extended methodological outline describing more in details all aspects of: The Name harmonization versus legal entity harmonization and consolidation; the Automated rule-based system; the Trade-off between precision/accuracy and recall/completeness and the possibilities for Extending the method and for applying it on the EPO’s Worldwide Patent Statistical Database can be found under the following link: 'Harmonizing harmonized patentee names: an exploratory assessment of top patentees'

Data production methods for harmonized patent statistics: Patentee sector allocation

In addition to the ‘Method for harmonizing applicant's names’ the K.U. Leuven and Eurostat published in 2006 also a working paper on a method for sector allocation (Van Looy, B., du Plessis, M. & Magerman, T. (2006) Data Production Methods for Harmonized Patent Indicators: Assignee sector allocation. Eurostat Working Paper and Studies, Luxembourg). This method on assignee sector allocation has been reviewed and improved recently. The latest results are available in the working document 'Evolution of innovation actors and the influence of legislation’.

In applying numerous rules based on keywords and/or clues patent applications are classified to five different institutional sectors:

More than 85% of all patent applications to the EPO are made by the business enterprises sector. For around 9% of the patent applications individual applicants can be identified. Whereas the patenting activity of the hospital sector is very small the patent applications of the remaining two sectors make up respectively about 2%. However one should bear in mind that these percentages are calculated for all patent applications to the EPO. This implies that the results may vary significantly across countries.

The working document focuses on the higher education sector and studies the role of legislation on the patenting activity in this sector.

The full methodology is described in the recent Eurostat working document 'Data production methods for harmonized patent statistics: Patentee sector allocation (2009)' and will be published soon in the Eurostat series "Methodologies and Working papers".

Conferences on Patent Statistics

Flyer: Conference on Patent statistics for Decision Makers 2009

A conference on Patent Statistics for decision makers has taken place in Vienna, on 7 - 8 October 2009. It was organised by the European Patent Office (EPO) and the Organisation for Economic Co-operation and Development (OECD) in co-operation with the DIME Network of Excellence, EPIP, Eurostat, Japan Patent Office (JPO), US National Science Foundation (NSF), United States Patent and Trademark Office (USPTO) and World Intellectual Property Organization (WIPO) took place in Vienna, Austria on 7 and 8 October 2009.

Patent data and patent statistics are one important way of measuring innovation and science and technology-related activities, but they can also reveal important information about the patent system and its performance.

The goal of this conference was to discuss advances in the analysis of patent information in the context of the current economic landscape, and in light of changes within the patent system and its use by applicants. The conference brought together the latest thinking on issues relevant to companies and policy-makers. In particular, the conference emphasized how patent data can be used in decision-making about R & D investments, in assessing the competitive environment of certain technologies and in formulating policy reform for the system in order to adapt it to a changing economic environment.

The conference attracted around 130 people. Participating target groups included:

  • experts, statisticians and analysts working in the fields of innovation, patents, and science and technology policies, including academics and researchers using patent data for economic and policy analysis;
  • policy analysts dealing with innovation and patent policies;
  • national, regional and international patent institutions;
  • business professionals specializing in patent statistics and valuation;
  • business and intellectual property analysts;
  • national statistical institutes (and Eurostat).
Flyer: Patent Statistics for Decision makers 2010

Another conference on the same topic will take place in Vienna, on 17-18 November 2010. For more information: Patent Statistics for Decision Makers conference website.

Context

Patents are generally used to protect R & D results, but they are also significant as a source of technical information, which may prevent re-inventing and re-developing ideas because of a lack of information. However, the use of patents is relatively restricted within the EU. There are a number of possible reasons for this including:

  • their relative cost;
  • the overlap between national and European procedures;
  • the need for translation into foreign languages.

Most studies in this area show that innovative enterprises tend to make more use of intellectual property protection than companies that do not innovate. Enterprise size and the economic sector in which an enterprise operates are also likely to play an important role in determining whether an enterprise chooses to protect its intellectual property.

The European Council held in Lisbon in March 2000 called for the creation of a Community patent system to address shortcomings in the legal protection of inventions, while providing an incentive for investments in R & D and contributing to the competitiveness of the economy as a whole. In July 2000 the European Commission made a first proposal for the creation of a Community patent. This was discussed at various levels and despite a number of proposals and amendments for a Council Regulation on the Community patent during 2003 and 2004 no legal basis was forthcoming. In April 2007 the European Commission released a Communication ’Enhancing the patent system in Europe’. This demonstrates that the European patent system is more expensive, uncertain and unattractive compared to patent systems in competitor states. The report also underlined the European Commission's belief that a more competitive and attractive Community patent system can be achieved, based upon the creation of a unified and specialised patent judiciary, with competence for litigation on European patents and future Community patents.

Further Eurostat information

External links

See also

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