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World Intellectual Property Report 2019

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World Intellectual Property Report 2019 Chapter 2 Global networks of innovation hotspots For much of the 20th century, multinational Starting in the 1980s and 1990s, the situation changed. companies (MNCs) from high-income countries The creation of new scientific and technological knowl­ restricted their foreign-based research and edge increasingly required interaction between insti­ development (R&D) operations to other rich tutions and organizations, whether public or private, economies, notably the U.S., Western European national or multinational, irrespective of their location. countries and, later, Japan. This was in marked Gradually, China, India, Eastern Europe and other contrast to the trend in manufacturing activities, middle­income economies gained in importance both which saw increasing outsourcing from richer to as targets for R&D­oriented foreign direct invest­ middle-income and developing economies.1 ment (FDI) by multinational firms and as sources of new knowledge. The rising need for complex and specialized knowledge and technological interaction at both national and international level has resulted – paradoxically – in both geographical concentration and dispersion of innova­ tion creation, as highlighted in Chapter 1. On the one hand, organizations have sought to locate innovation activities and interactions wherever high quality and lower costs are available. On the other, market forces, economies of scale and the need for more face­to­ face communication and multidisciplinary interaction, because of the complexity of the interactions, have pulled in the direction of geographical proximity. Global innovation networks have been a key centrifugal force in the geographical distribution of knowledge­ creation activities. Knowledge­seeking FDI does not target whole countries, but specific locations within them. Most international collaborations, investments or movements of skilled workers occur between specific knowledge­production centers. But global innova­ tion networks do not merely span frontiers, they link specific locations within countries and reinforce the national prominence of these locations; within national borders, inter­regional innovation subnetworks coexist with global ones. In view of these considerations, it is crucial to under­ stand empirically the geographical concentration and spread of the world’s scientific and technical knowl­ edge production and interactions. This requires fine­ grained mapping of innovation activities within national borders and how these contribute to the worldwide dispersion of knowledge exchanges. In particular, it is important to examine whether the growth of national 31 World Intellectual Property Report 2019 knowledge­production centers or hubs results in an overall increase in international collaboration and investment or whether they simply suck­in innovative Box 2.1 Patent and scientific publication activities to the detriment of other areas in the country geocoded data or beyond in a zero­sum game. This may be especially relevant for developing economies, whose national Patent data innovation systems may become less dependent on the R&D operations of foreign MNCs, thanks both to The patent data used in this report cover all patent the strengthening of local firms and the implementation documents – granted or not – filed from 1970 to 2017 of specific public policies to promote local innovation, in all patent offices worldwide and available in the either substituting or leveraging their national and European Patent Office’s (EPO) PATSTAT database international collaborations. and WIPO’s Patent Cooperation Treaty (PCT) collec­ tions. The unit of analysis is the first filing for a set Moreover, the globalization of knowledge produces of patent documents filed in one or more countries imbalances in the distribution of innovative activities and claiming the same invention. Each set containing within countries. As knowledge­production centers one first and, potentially, several subsequent filings worldwide gain in importance and intensify their is defined as a patent family. In the analysis, patent exchanges, cities and regions that do not participate in families are split into those oriented internationally such exchanges risk being marginalized (see Chapter 5). and those oriented only domestically. Internationally­ oriented patent families refer to applicants seeking This chapter documents the evolution of global knowl­ patent protection in at least one jurisdiction other edge­creating interactions and how the centrifugal than their country of residence. These include patent and centripetal forces described in Chapter 1 generate families containing only patent documents filed at global networks of extremely concentrated innovation the EPO or through the PCT. Conversely, domestic hotspots and specialized niche clusters. It uses a patent families refer only to filings in a home country, novel database of geocoded scientific publication – for instance, a Japan­based applicant filing only at scientific articles and conference proceedings – and the Japan Patent Office. patent data to track developments (see Box 2.1) and emphasize a series of long­term trends, starting from As far as possible, the geocoding – attributing the mid­1970s. the geographical coordinates to a given location – relates to the inventor’s address based on the best The chapter is organized in four sections. The first available data source within a patent family.2 Many section examines how internationalized the produc­ addresses are geocoded at a very precise level – i.e., tion of scientific and technological knowledge has street or block – but others only at the postal code become, with a focus on the rise in the participation or other sub­city level. To remain internationally of middle­income countries, notably China. It also comparable, but also due to the limited coverage provides complementary evidence on how knowledge of inventors’ addresses in some national collections, production is becoming increasingly concentrated the clustering analysis relies only on internationally­ geographically by identifying the main innovation oriented patents. agglomerations – hotspots and clusters – within each country. The second section analyzes the scientific Scientific publication data and technological interactions between countries, providing further evidence for the globalization of inno­ The scientific publication data used in this report vation. It highlights the role of international knowledge comes from records from 1998 to 2017 in the outsourcing by companies as a driving force behind Science Citation Index Expanded (SCIE) of the Web the development of global innovation networks. The of Science, the citation database operated by the third section explores to what extent the two types of Clarivate Analytics company. The analysis focuses agglomerations concur to form an innovation network on observations referring to scientific articles and that is properly global. The final section spells out the conference proceedings, which are the bulk of chapter’s main findings. these data. 32 2 Global networks of innovation hotspots The report assumes that research conducted for any Two decades of accelerated spread publication has taken place at the institutions and of knowledge production organizations to which the authors declare their affili­ Figure 2.1 Evolution of patenting (top) and ation. Virtually all of these locations were geocoded publicationEvolution of share patenting (bottom) share by top economies at the postal code or sub­city level. In the case of by top economies authors with more than one affiliation in the same 100 publication, all different addresses are considered. 80 2.1 The two sides of global knowledge production 60 Percent The accelerating international 40 spread of knowledge creation Where does knowledge production take place? Is the geographical spread of such output different to 20 that of other economic activities? Empirical evidence indicates that activities related to knowledge produc­ tion – such as R&D expenditure, patent generation or scientific publication – are typically more geographically 0 Evolution1970–79 of1980–89 publication1990–99 share2000–04 2005–09 2010–14 2015–17 concentrated within countries than is the case for other by U.S. top economies JAPAN GERMANY OTHER WESTERN EUROPE key economic activities, the overall population, trade REP. OF KOREA CHINA REST OF THE WORLD or FDI. Despite this higher concentration, the global 100 tendency is for the degree of international geographic dispersal of innovation over time.3 80 For most of the period from 1970 to 2000 only three coun­ tries – namely, the U.S., Japan and Germany – account­ ed for two­thirds of all patenting activity worldwide (Figure 2.1). Adding the remaining Western European 60 economies – particularly, the U.K., France, Switzerland and Italy – takes the figure to around 90 percent. Percent 40 Still, the rest of the world’s share in the production of new technologies, as reflected in the number of patents, slowly rose over the three decades, mostly at the expense of several Western European economies. 20 The rest of the world passed from less than 6 percent at the beginning of the 1970s to more than 13 percent in the early 2000s. And only a fraction of this spread 0 was due to the Republic of Korea and China. 2000–04 2005–09 2010–14 2015–17 U.S. U.S. JAPAN JAPANGERMANY GERMANYOTHER OTHER WESTERN WESTERN EUROPE EUROPE In the last two decades, the trend has accelerated REP. REP. OF OF KOREA CHINA CHINA REST OF REST THE OF WORLD THE WORLD remarkably
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