Ch13: The Rise of China's Patent Filing Machine

Imagine this: In 2023, China, a country that has led the world in patent filings since 2011, submitted a staggering 1.58 million patent applications, nearly half of the global total for that year.

Hold onto your hard drives, folks, because we're about to breach the Great Wall of Patents- China's audacious rise in the global intellectual property (IP) landscape, drive by a pursuit of global technological domination.

But this isn't just a numbers game. It’s a strategic shift, a technological sprint from copycat to creator, reshaping the future of innovation across the globe.

Let's roll!

..

Before we move ahead, do join my 17k member big Biz News+ community on WhatsApp.

..

Early Stages (1950 - 1980s)

• China's modern patent system took root in 1950.
• However, it lay dormant,?stifling innovation under a planned economy.?Think dusty scrolls scribbled with forgotten inventions.

..

Awakening the Dragon: (1980-2000)

• China’s 1984 move to reform the patent laws in sync with its economic reforms turned out to be a landmark event which changed all of that, setting the stage for future growth.
• Economic reforms breathed fire into the IP system,?with patent filings soaring alongside China's economic boom.
• With a fresh and massive new push towards STEM education, China got used to a consistent and decent jump in the number of patent filings across sectors.

..

Reforms and Amendments (2000 - 2020)

• Subsequent amendments to the 1984 law in 1992, 2000, 2008, and 2020 continually expanded and strengthened the patent system, reflecting China's evolving intellectual property (IP) strategy and its drive to foster innovation.
• However, despite all good growth, it was only in 2011 that China's patent ambitions skyrocketed,?fueled by government initiatives,?strategic investments,?and a growing tech sector.
• This was due to a concerted Government policy and money push on the private sector, universities and research bodies to prioritise research and development as a principle of strategic national importance.

..

Impact?

• Borne out of all that, a landmark moment came in 2021 when China not only filed 1.4 million patents, accounting for 43.4% of the world's total, but also surpassed the United States in international patent applications under the Patent Cooperation Treaty (PCT).
• China's approximately 1.58 million patent filings in 2023 dwarf the combined filings of the US (0.5 million), Japan (0.4 million), South Korea (0.27 million), and Germany (0.16 million)

All this in about 35 years! Crazy!

..

But, What Areas are These Patents Being Filed in?

It’s important to understand that, given it’s key to understanding what technologies or domains China is trying to establish leadership.

• 35%: AI, 5G & IoT, all sunrise and up-and-coming areas which could alter the world as we know it
• 20%: Biotechnology and pharmaceuticals, indicative of China's focus on healthcare innovation
• 15%: Green technology, aligning with China's commitment to environmental sustainability
• 10%: E-commerce and fintech, cementing China’s position as the world’s largest e-commerce market
• 20%: Others (Manufacturing, Transportation, etc)

..

And the best part?

The big boys of China’s technology landscape only account for a small share of the overall patent filings. Just look at the 5 institutional players and the approximate number of patents they have filed in 2023.

1. 华为 : 8.45k
2. State Grid Corporation of China : 8.43k
3. 阿里巴巴集团 : 5k
4. 腾讯 : 4.5k
5. 小米科技 : 3k

That’s just about 2% of the total number of patents filed in all of China in 2023.

That shows how China’s technology and IP landscape is a highly diversified revolution, which is not led by a handful of powerful entities.

..

Conclusion

• China's patent boom drives not just domestic progress but global advancements.
• From clean energy to healthcare, Chinese inventions are shaping the future. Think of a vast network of trade routes, carrying new discoveries from the Great Wall to the world.
• China's "Great Wall of Patents" is a landmark in its journey towards becoming an innovation superpower.

..

Subscribe and stay tuned for more updates in this fascinating saga of studying China’s rise!

See you tomorrow morning 7.30 am with another edition.

Best,

Jayant Mundhra