Posts Tagged ‘Patent Regime’

Science and technology: falling patent quality hits innovation, says OECD

Thursday, September 22nd, 2011

Source: OECD press release, dated 20.09.2011:

20/09/2011 – The quality of patent filings has fallen dramatically over the past two decades. The rush to protect even minor improvements in products or services is overburdening patent offices. This slows the time to market for true innovations and reduces the potential for breakthrough inventions, according to a new OECD report.

The Science, Technology and Industry Scoreboard 2011finds that patent quality has declined by an average of around 20 per cent between the 1990s and 2000s, a pattern seen in nearly all countries studied.Studying patent quality in different sectors has also allowed the OECD to assess which countries are doing best in innovation. The United Kingdom, for example, produces semiconductor and environmental technology patents that are above average in quality.

 

Korea has a competitive advantage in ICT-related innovations. And Germany is strong at innovating in solar energy.

Patents from inventors in the United States, Germany and Japan are the most highly cited, which suggests they are true innovations being used by many firms in their products to generate further innovations.

 

But while these countries produced about 70% of the top 1% of highly cited patents between 1996 and 2000,  their share had fallen to 60% five years later.

 

The Nordic countries and China, India and Korea have seen their share increase of highly cited patents. The European Union is leading in clean energy technologies, representing nearly 40% of all filings by the late 2000s, followed by the US and Japan. In this area, China now ranks 8th worldwide.

 

The OECD report ranks research by universities worldwide. Overall, 40 of the top 50 are located in the United States, with the rest in Europe. But a more diverse picture emerges when looking at subject areas. In social sciences, for example, the UK leads with 16 of the top 50 institutions after the US. And there is growing evidence that universities in Asia are emerging as leading research institutions: China has 6 in the top 50 in pharmacology, toxicology and pharmaceutics. And Hong Kong University is among the best in computer science, engineering and chemistry.

 

The US leads the world in research and development (R&D), with around USD 400 billion of spending on R&D in 2009. China is today second, with over one third of that total, followed by Japan. The European Union as a whole spent about USD 300 billion in 2009.

 

The Scoreboard tracks trends in science, technology and industry to understand how innovation is evolving and how countries are positioning themselves in the global knowledge economy. It includes more than 180 internationally comparable quality indicators and provides a broad range of statistics for other major economies such as Brazil, China, India, and the Russian Federation.

 

The complete Scoreboard 2011 is available at www.oecd.org/sti/scoreboard and provides easy access to individual sections and links to the databases used. Each indicator is also downloadable in PDF format.

 

For further information about this report, please contact Alessandra Colecchia (tel. + 33 1 45 24 94 12), OECD’s Science, Technology and Industry Directorate.

OECD: “Pseudo-Erfindungen erschweren Marktzugang für Innovationen”

Thursday, September 22nd, 2011

Quelle: Pressemitteilung der OECD, 20.09.2011.

(Paris/Berlin – 20. September 2011) Deutschland hat im Zeitraum 2000 bis 2005 so viele Patente im Europäischen Patentamt registriert wie kein anderes Land auf der Welt. Gleichzeitig verschlechtert sich die Qualität von Patentanmeldungen auch hierzulande seit zwei Jahrzehnten und verlängert so die Zeit, die neue Produkte brauchen, um schließlich auf den Markt zu gelangen. Das geht aus der jüngsten OECD-Publikation zu Wissenschaft und Industrie, dem “Science, Technology and Industry Scorebard 2011” hervor, das heute von der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung veröffentlicht wurde.

 

Mit beinahe 70.000 Patenten war Deutschland zwischen 2000 und 2005 innovativer als die USA mit knapp 60.000 und Japan mit 48.500 Patenten. Die Qualität der Patentanmeldungen ist in den drei Ländern im internationalen Vergleich hoch. Allerdings hält sogar hier ein Trend Einzug, der Experten Sorgen macht: Unternehmen versuchen, selbst kleinste Veränderungen an altbekannten Produkten oder Dienstleistungen patentieren zu lassen und belasten die Patentämter mit Anträgen, die schließlich negativ beschieden werden. Marktbrechende Erfindungen hätten es in diesem Wust von Einreichungen entsprechend schwerer, sich abzuheben, wahre Innovationen würden behindert, kritisieren die Experten.

 

Kamen zwischen 1996 und 2000 noch 70 Prozent der Top-Patente, die das Europäische Patentamt vergab, aus den USA, Deutschland und Japan, so lag dieser Anteil fünf Jahre später bei nur noch 60 Prozent. Verantwortlich ist ein spürbarer Rückgang in den USA und Japan, während der Anteil deutscher Top-Patente stabil blieb. Dafür betreten China, Indien und Korea im Jahr 2000 die Bühne der besten Innovationen, auf der bis dahin nur westliche Länder gespielt hatten.

 

 

Allgemein ist die Qualität der Patentanträge dem Bericht zufolge seit 1990 jedoch um 20 Prozent gefallen. Im Schnitt wird nur jede vierte Anmeldung akzeptiert. Am höchsten ist die Vergabequote der in Europa geschützten Patente in relativ jungen Bereichen, wie zum Beispiel bei erneuerbaren Energien, Nanotechnologie und IT-Methoden. Deutschland ist bei Innovationen in der Solarenergie besonders stark.

 

Die größten Summen für Forschung und Entwicklung wenden noch immer die USA auf: 400 Milliarden US-Dollar investierte das Land im Jahr 2009 in seine wissenschaftliche und wirtschaftliche Wettbewerbsfähigkeit. China und Japan folgen mit knapp einem Drittel dieser Summe an Platz zwei und drei. Gemessen an der Wirtschaftskraft führen allerdings Finnland und Schweden mit Ausgaben von 4,0 beziehungsweise 3,6 Prozent ihres Bruttoinlandsproduktes.

 

Das OECD-Scoreboard für Wissenschaft, Technologie und Industrie verfolgt die globalen Trends in diesen Bereichen und versucht, sichtbar zu machen, wie sich einzelne Länder in der Wissensgesellschaft aufstellen. Der Bericht beruht auf 180 international vergleichbaren Indikatoren und liefert außerdem statistisches Material für wichtige Länder außerhalb der OECD: Brasilien, Indien, China und Russland.

 

Die Publikation steht auf der OECD iLibrary Website zur freien Verfügung. Einzelne Indikatoren können auch als PDF runtergeladen werden.

 

> zur Hauptseite “Science, Technology and Industry Scorebard 2011

 

Quelle: Pressemitteilung der OECD, 20.09.2011.

Infosys reportedly gave up China investment plans for IPR fears on clients’ side

Sunday, September 11th, 2011

According to a news item appearing the Economic Times (7th Sept. 2011) Indian IT major Infosys gave up its plans for increasing foreign direct investment (FDI) in China as its major customers in Europe and the USA had apprehessions about their data procession and/or software-related work being done in China owing to fears about the protection of intellectual property rights.

The report cites as source a US diplomatic cable which has been released by WikiLeaks. It also narrates an incidence, which N.R. Narayana Murthy, Co-founder of Infosys reportedly told US diplomats:

Murthy said he understood the misgivings of his clients and narrated his experience in China to show how rampant piracy was. Stepping out of his central Beijing hotel to go for a stroll with Peter Bonfield, then CEO of British Telecom, they encountered a sidewalk vendor selling pirated Microsoft and Windows products.

Bonfield jokingly asked the vendor if he had Finacle (an Infosys banking software product) and the vendor replied: “I can get it for you tomorrow.”

Murthy, was at the same time quite clear about China’s potential, its qualities, and HR problems that it faces, as is clear from the next section:

Murthy, however, was optimistic about the long-term potential of China. As per the cable, he stated: “There is nobody better than the Chinese at solving a problem once they are serious about it.” Murthy said it would take four to five years for the Chinese to overcome that reluctance.

There were other concerns for Infosys to expand in China. Murthy told the diplomats that though qualified graduates were available, those with sufficient English skills commanded a high premium. He said retention was more difficult in China than in India, as Chinese professionals are more willing to leave for a higher salary where Indian ones value institutions a bit more.

The whole report is available at: The Economic Times (11.09.2011)

Report forecasts global spending on medicines to cross $1.1 trillion by 2015

Tuesday, June 21st, 2011

Press Release

Slowing Growth in Developed Markets as Patent Expiries and Policy Changes Take Hold

PARSIPPANY, NJ, May 18, 2011 – The IMS Institute for Healthcare Informatics today reported that global spending for medicines will reach nearly $1.1 trillion by 2015, reflecting a slowing compound annual growth rate of 3-6 percent over the next five years. This compares with 6.2 percent annual growth over the past five years. Lower levels of spending growth for medicines in the U.S., the ongoing impact of patent expiries in developed markets, continuing strong demand in pharmerging markets, and policy-driven changes in several countries are among the key factors that will influence future growth, according to the IMS Institute’s new study, The Global Use of Medicines: Outlook Through 2015.

“The future level of spending on medicines has striking implications for healthcare systems and policy makers across the developed and emerging economies,” said Murray Aitken, executive director, IMS Institute for Healthcare Informatics. “Past patterns of spending offer few clues about the level of expected growth through 2015. There are unprecedented dynamics at play, which are driving rapid shifts in the mix of spending by patients and payers between branded products and generics, and across both developed and pharmerging markets.”

In its latest analysis, the IMS Institute identifies the following dynamics:

  • Brands accelerate their decline in share of spending. While aging populations in developed markets will continue to drive incremental spending on brands, this will be more than offset by the impact of patent expiries. As a result, spending for branded products in developed markets will remain at the same level in 2015 as in 2010. Globally, market share for branded medicines, which fell from 70 percent in 2005 to 64 percent in 2010, is expected to decline further through 2015, to 53 percent. While growth for branded products in the emerging markets will be robust, 80 cents of every dollar spent on medicines in these markets in 2015 will be for generics.
  • Unprecedented level of patent expiries brings “patent dividend” to developed markets. Expiring patents for branded products will yield $98 billion in net savings to payers in developed countries through 2015, compared with $54 billion in savings realized in the five years to 2010. Patent expiries will save payers $120 billion by 2015, offset by $22 billion of expected generic spending for these medicines. Among developed markets, the U.S. will experience the largest expansion of generic spending, while Japan will continue to have the lowest share despite significant policy incentives to increase generic prescribing and dispensing.
  • Novel therapies address unmet patient needs. Recent and upcoming launches of new medicines will bring important new treatment options to extend or improve patients’ quality of life. These include: oral medications for multiple sclerosis with increased efficacy and patient convenience; two recently launched treatments for arrhythmia that expand therapy options for the first time in decades; treatments for metastatic melanoma that improve survival rates; and the first therapeutic prostate cancer vaccine, a breakthrough advance in personalized medicine.
  • Pharmerging markets approach U.S. levels of spending on medicines. Over the next five years, the pharmerging markets are expected to nearly double their spending on medicines, to $285-315 billion, compared with $151 billion in 2010. This will be fueled by strong economic growth and governments’ commitment to expanded healthcare access. The IMS Institute forecasts that by 2015, the pharmerging markets will become the second largest geographic segment globally in spending on medicines – surpassing Germany, France, Italy, Spain and the U.K. combined, and approaching U.S. levels.
  • Health policy decisions affect spending in the long term. 2010 policy decisions that will affect spending for medications during the next five years include: the passage of the Affordable Care Act in the U.S., which will expand health insurance coverage to 25-30 million Americans; price controls in China to ensure the sustainability of universal coverage; Japan’s first price cut under its new protected innovative products policy; price reductions to generics and off-patent products in Spain and Italy; and mandatory cost-benefit evaluations for new products in Germany. Additionally, rebates and discounts, which are not reflected in IMS audits, are being applied more extensively by public and private payers, particularly in the U.S., France and Germany. The amount of these off-invoice discounts in 2010 is estimated to be $60-65 billion, and will rise to $65-75 billion by 2015.
  • Biosimilars evolve rapidly, but adoption limited. By 2015, the IMS Institute expects spending on biosimilars to exceed $2 billion annually, or about 1 percent of total global spending on biologics. New biosimilars are expected to enter the U.S. market by 2014, and European markets will see additional biosimilar molecules introduced during this period. This will accelerate spending for biosimilars over the 2010 level of $311 million.

The IMS Institute also identified the leading therapeutic classes in 2015. These include: Oncology, which is expected to remain the leading therapy class but with slowing growth of 5-8 percent as existing targeted therapies already have been widely adopted; diabetes treatments, where spending is forecast to be 4-7 percent, driven by the rising prevalence of the disease and by the uptake of newer oral antidiabetic agents; asthma and COPD treatments, where growth is expected to slow to 2-5 percent; and lipid regulators, where spending will fall to $31 billion in 2015 from $37 billion in 2010

Said Aitken, “Over the next five years, we’ll not only see total spending exceed $1 trillion, but payers will be managing a significant patent dividend while emerging market governments seek to expand treatment options to more patients. All of this will require that healthcare stakeholders engage in a truly meaningful dialogue as they seek the common goal of increased access, cost reductions and better outcomes.”

To access the IMS Institute report, The Global Use of Medicines: Outlook Through 2015, go to http://www.theimsinstitute.org. The study also features additional details related to global country rankings, spending on medicines in the developed and pharmerging markets, and forecast summaries on spending by country.

Analyses conducted for The Global Use of Medicines: Outlook Through 2015 report are based on IMS audits and include all types of biopharmaceuticals, including biologics, OTC, and traditional medicines distributed and administered through regulated delivery systems such as pharmacies, hospitals, clinics, physician offices, and mail order, where applicable. Spending figures are derived from IMS Market Prognosis™ and are reported at ex-manufacturer estimated prices that do not reflect off-invoice discounts and rebates. IMS MIDAS™, Lifecycle™ R&D Focus, Lifecycle™ New Product Focus, PharmaQuery™ and Therapy Forecaster™ were also used for assessing worldwide healthcare markets, therapy class and product dynamics and country-level pricing and reimbursement complexities. More detail on information sources is included in the report.

About the IMS Institute for Healthcare Informatics
The IMS Institute for Healthcare Informatics provides key policy setters and decision makers in the global health sector with unique and transformational insights into healthcare dynamics derived from granular analysis of information. It is a research-driven entity with a worldwide reach that collaborates with external healthcare experts from across academia and the public and private sectors to objectively apply IMS’s proprietary global information and analytical assets. More information about the IMS Institute can be found at: http://www.theimsinstitute.org.

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Source of this press release: Click here

New publication: “Lead Market Factors for Global Innovation: Emerging Evidence from India”

Tuesday, April 5th, 2011

Lead Market Factors for Global Innovation: Emerging Evidence from India

By: Rajnish Tiwari and Cornelius Herstatt

Hamburg University of Technology (TUHH)

Institute for Technology and Innovation Management

Schwarzenbergstrasse 95, D-21073 Hamburg, Germany

Tel. +49 – (0)40 – 42878 3776 / Fax: +49 – (0)40 – 42878 2867

http://www.global-innovation.net/

Abstract

Securing access to “lead markets” is generally regarded as a key driver for the increasing globalization of innovation since these are considered to be “early indicators” for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for in the innovation process of firms.  Lead markets are generally defined in terms of product segments within national boundaries and are thought to exist in economies with high per capita income, highly sophisticated markets and high international visibility.

We argue that there is increasing evidence of lead market tendencies in certain emerging economies, e.g. India. Both domestic and foreign-owned firms there, in recent years, have produced several internationally acclaimed “frugal innovations”, such as the Tata Nano or GE’s handheld ECG machine Mac400. Using several examples we demonstrate that India seems to have emerged as a global hub for low-cost, frugal innovations.

In this paper, we seek to crystallize the role of lead markets in globalization of R&D and identify the need for an update/extension to better reflect the changed ground realities. On the basis of emerging evidence we propose that sustained economic growth, voluminous markets, strong domestic technological capabilities, presence of foreign-owned R&D, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid worldwide.

Keywords: Lead Markets; Global Innovation; Globalization of Innovation; Internationalization of R&D; Bottom of the Pyramid; Frugal Innovations

Download links:

1. http://www.global-innovation.net/publications/PDF/Working_Paper_61.pdf

2. http://www.tu-harburg.de/tim/downloads/arbeitspapiere/Working_Paper_61.pdf