The role of research and ownership in generating patent quality: China s experience
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1 The role of research and ownership in generating patent quality: China s experience GWU 10 th Anniversary Conference Oct. 6, 2017 Gary H. Jefferson jefferson@brandeis.edu Jiang Renai Li Lintong Sam Zucker
2 Research objectives Profile and evaluate the evolution of the quantity and quality of Chinese patents vs. those of the U.S., Japan, and other OECD countries. Analyze the impact of research collaboration and patent ownership on patent quality. How does the number of inventors affect patent quality? How does the affiliation of inventors across corporations, universities, and research institutes affect patent quality? How does the distribution of inventors across countries affect patent quality? Similarly, how does the assignment of patent ownership affect patent quality number, affiliation, nationality?
3 Stefan Wuchty, Benjamin F. Jones, Brian Uzzi, The Increasing Dominance of Teams in Production of Knowledge, Science Use 19.9 million papers over 5 decades and 2.1 million patents to demonstrate that teams increasingly dominate solo authors in the production of knowledge. Findings: Research is increasingly done in teams across nearly all fields. Teams typically produce more frequently cited research than individuals do, and this advantage has been increasing over time. Teams now also produce the exceptionally high-impact research, even where that distinction was once the domain of solo authors. These results suggest that the process of knowledge creation has fundamentally changed.
4 Patent counts (USPTO) 2015: U.S. = 146,883; non-u.s. = 142,981 Table 1. Number of patents Year China ,355 7,450 U.S. 37,536 80, , ,883 Japan 18,898 32,787 47,731 55,110 S. Korea 163 3,285 12,519 20,305 Germany 6,520 9,530 12,431 16,220 Other EU 14,028 22,211 30,282 43,896
5 Number of patents top tier patents % internationa l patents % % with inter-nation al inventor % with inter-nation al assignee Table 2. Comparing USPTO and SIPO (2015) USPTO SIPO SIPO US patents (Granted (Patent (Granted patents) applications patents) Chinese patents 325,980 2,798,500 1,718,192 n.a. n.a n.a. n.a. 49.8% (inventor country) 55.1% (assignee country) 5.7% (total patent) 12.1% (invention patent) 7.1% (total patent) 26.7% (invention patent) n.a. n.a. n.a. n.a. n.a. 10.4% 24.8% n.a. n.a. n.a. 1.0% 12.9%
6 USPTO Data (Li Lintong) U.S. Patent Code (USPC) 453 technology codes Sample period (5,726,987 granted patents) Measures of patent quality Backward citations Claims Forward citations Measures of research/ownership collaboration Inventors (city, country) Assignees (institutional affiliations, city, country)
7 Number of backward citations Table 3. Average number of backward citations China U.S Japan S. Korea Germany Other EU
8 Number of claims/patent breadth Table 4. Average number of claims China U.S Japan S. Korea Germany Other EU
9 Number of forward citations Table 5. Average number of forward citations China n.a. U.S n.a. Japan n.a. S. Korea n.a. Germany n.a. Other EU n.a.
10 Inputs to patent quality R&D spending/r&d personnel % basic research IPR Inventors? Basic research institutions Home country research collaboration International research collaboration Assignees? Basic research institutions (universities, RIs) Home country joint ownership International joint ownership
11 Table 7. Research & ownership (team) collaboration, vs # of inventors # of inventor countries # of assignee organizations # of assignee countries U.S Japan China S.Korea German y Other
12 Empirical strategy I Issue: The aggregate figures convey only averages, not the link between the ways in which patterns of research collaboration and ownership affect the quality of individual patents. Impact of inventor collaboration on patent quality: PAT(1,2,3) it = β 1 + β 2 INV_NUM it + β 3 INTL it + ε 1it 1 = backward citations, 2 = claims, 3 = forward citations
13 Table 8. Role of Inventor Status in Patent Quality Total population, backward claims forward INV_NUM (236.78) INT L (51.85) Constant (297.49) (273.18) (28.65) ( ) (27.29) (96.13) (0.196) Obs. 5,726,987 5,726,987 5,726,987 Adj R-sq US sample only, (239.95) INV_NUM (229.35) INT L (14.64) Constant (176.62) (4.31) ( (43.68) (58.18) (421.65) Obs. 3,079,353 3,078,307 3,079,353 Adj R-sq China sample only, INV_NUM (27.87) (34.17) INT L (20.53) Constant (40.32) (25.81) (155.75) (8.68) (18.43) (47.05) Domestic collaboration of significant benefit International collaboration of negative benefit For claims and forward citations, domestic collaboration of limited benefit Int l collaboration is of substantial benefit Obs. 60,219 60,219 60,219
14 Individual sectors: research and ownership collaboration How consistent and uniform is this finding? Jaffe citation data of more use when patents are clustered by technology group Automobiles Pharmaceuticals Semi-conductors Solar
15 Automobiles - claims Pharmaceuticals - claims US China Other US China Other INVNUM (40.30) (4.01).688 (42.74) (33.25) (0.93) (29.94) INT L (2.90) (4.95) (70.93) (6.00) (8.45) (52.32) Constant (188.60) (22.84) (211.21) (196.81) (22.01) (175.06) Obs. 73, , ,519 1, ,429 Adj R-sq Semiconductor - claims Solar - claims US China Other US China Other INVNUM (3.77) (1.81).317 (16.29) (32.88) (0.78) (35.60) INT L (2.62) (7.38) (50.59) (0.17) (3.96) (40.24) Constant (178.13) (26.88) (196.76) (110.54) (16.62) (116.33) Obs. 54,296 1, ,429 33, ,236 Adj R-sq
16 Conclusions re: impact of inventor research collaboration on patent quality The U.S. and Chinese patents use/respond to inventor research collaboration in different ways. Both derive benefit from inventor collaboration. For the U.S. the benefit is largely from domestic collaboration; benefit from international collaboration is uneven or negligible. China derives substantial benefit from international collaboration; limited benefit from domestic collaboration.
17 Assignee ownership Impact of joint assignee ownership on patent quality: PAT(1,2,3) I,t = β 1 + β 2 INV_NUM + β 3 INTL + ε 1 1 = backward citations, 2 = claims, 3 = forward citations
18 Table 8. Role of Assignee Status in Patent Quality INV_NUM (13.32) INT L (75.85) Constant (120.86) Total population, backward claims forward (14.18) ( (453.2) (46.36) (90.56) (205.67) Obs. 4,936,082 4,935,218 4,936,082 Adj R-sq INV_NUM (19.45) INT L (2.68) Constant (43.09) US sample only, (28.12) (3.04) (190.19) (16.73) (6.35) (92.56) Obs. 2,556,308 2,555,786 2,556,308 Adj R-sq INV_NUM (2.55) INT L (0.54) Constant (29.17) China sample only, (7.67) (2.27) (57.65) (4.37) (3.32) (16.85) Obs. 34,528 34,528 34,528 Domestic joint ownership of significant benefit for claims; not forward International ownership of negative advantage Domestic joint ownership of significant benefits for claims; not citations International ownership of substantial benefit to claims/forward
19 With assignee data we can do better Does it matter what kind or organization the assignee is or the nature of the joint ownership? PATclaims I,t = β 1 + β 2 INV_NUM + α 1 CORP + α 2 UNIV + α 3 RI + α 4 CORP*UNIV + α 5 CORP*RI + α 6 UNIV*RI + α 7 CORP*UNIV*RI + β 3 INTL + ε 2
20 Table 9. Impact of Ownership Assignment (Assignees) on Patent Quality (claims) Overall Constant (359.02) ASSG_NUM (8.70) Corp (122.52) Univ (105.14) RI (93.89) Corp*Univ (36.95) Corp*RI (21.04) Univ*RI (21.46) Corp*Univ*RI (12.74) INTL (36.27) U.S. (18) (154.60) (13.95) (43.19) (53.30) (39.84) (17.61) (12.15) (7.86) (7.42) (1.74) China (12) (32.80) (1.01) Results US>>China (2.29) Univ & RI > Corp US > China (5.77) (6.29) (11.29) (8.81) (0.49) (0.10) (6.33) Obs. 4,935,218 2,555,786 34,528 Adj. R-sq US: Corp*Univ*RI>> all others; China: Corp*Univ*<< All others China<<US
21 Conclusions re: impact of joint assignee ownership on patent quality Both China and U.S.: UNIV & RI separately > CORP Corp*UNIV & Corp*RI > CORP For the U.S.: International ownership of negative advantage For China: International ownership of substantial benefit to claims/forward citations CORP*UNIV*RI for US >>> China; UNIV*RI bodes poorly for China.
22 Assignee ownership/inventor ratio? Here are the different possibilities: X = # of assignees; Y = # of inventors Is there an X/Y effect? Possible hypotheses: Incentive effect: I ll work at my research job harder if I receive a piece of the action, i.e. ownership X/Y should approach 1. Resource/scale effect: Sole or concentrated ownership motivates or scales greater possibilities for hiring in research capabilities X/Y should approach 0.
23 Table 10. China: Impact of assignee/inventor ratios on patent quality Overall Corporations Universities Research institutes Results Claims China: 15/24 > 0, i.e., 1/ seemingly more emphasis 1/y, y > on the incentive effect; x/y, x&y > fewer resource or scale Forward effects. 1/ /y, y > x/y, x&y > Claims US: Impact of assignee/inventor ratios on patent quality All but 1 of the claims coefficients have < 0; U.S. the resource effect dominates 21/24 < 0 1/ /y, y > x/y, x&y > Forward 1/ /y, y > x/y, x&y >
24 Conclusions: How China stacks up vs. U.S. and other countries Past 15 years establishing an international patenting presence only 5% of U.S. - USPTO patent count. U.S. and China both show positive returns to inventor collaboration but different. U.S.: returns to domestic collaboration > 0; returns to international collaboration << 0. China: returns to domestic collaboration ~ 0; returns to international collaboration >> 0. Argues against excessive reliance on indigenous innovation, i.e., Chinese purchases of imported technology have fallen significantly over the past 10 years.
25 The End Thank you
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