Statistics recently published by the World Intellectual Property Organization (WIPO) show that the number of patent applications filed worldwide has grown significantly in recent years. Key finding :  the map of innovation is shifting.

According to the WIPO Patent Report 2007, the total number of patent applications filed around the world has increased steadily, particularly since 1995. Together the so-called "big five" offices - China, Japan, the United States, Korea and the European Patent Office (EPO) - account for 77 % of all applications and 74 % of granted patents.

Inventions in the field of electricity and electronics accounted for 35 % of patent applications between 2000 and 2005, with applications concentrated in Japan, the US, Korea, Europe and China.

Although there has been a continuous increase in the number of filings by patent applicants in their country of residence, most of the increase in total patent filings is accounted for by non-resident patent filings. Here are some of the highlights of the report:

Growth in Patent Activity. Worldwide filings of patent applications have grown at an average annual rate of 4.7% since 1995 to a total of more than 1.6 million in 2005. The growth rate is comparable to the overall increase in economic activity over the same period. Patents granted worldwide have increased at an average annual rate of 3.6% to about 600,000 in 2005. At the end of 2005, there were approximately 5.6 million patents in force worldwide.

Uneven distribution of patent filings worldwide. A small number of countries account for the majority of patent filings both by residents and non-residents. Patent offices of Japan and the United States of America receive the largest amount of patent applications. In fact, of the approximately 5.6 million patents in force in 2005, 49% were owned by applicants from these two established industrialized countries.  The other patent offices receiving the most number of patent filings include the North East Asian emerging countries, namely China and the Republic of Korea and large industrialized European States. The distribution of patent filings by office has changed in recent years, particularly as China and the Republic of Korea are becoming major industrial economies and their use of the patent system is expanding.

Increasing Internationalization. The use of the patent system internationally has increased markedly in recent years. This can be seen in the growth rate of total patent filings by non-residents (+7.6% over 2004) and in the increase in non-resident patent filings in countries such as China, India, Mexico, the Republic of Korea and the Russian Federation. However, the use of the patent system remains highly concentrated with only five patent offices (China, Japan, the European Patent Office, the Republic of Korea and the United States of America) accounting for 77% of all patents filed and 74% of all patents granted.

Increased use of the Patent Cooperation Treaty (PCT). The PCT, which provides a simplified system for international patent filing, has become the major route for international patent filing. The number of PCT international applications increased by 7.9% from 2005 to 2006 to reach 147,500. PCT national phase entries account for 48% of worldwide non-resident patent filings.

Increasing Patent Filings in the Technical Field of Electricity and Electronics. In its analysis of patent trends around the world, the report reveals an increase in filings in the electricity and electronics sectors. Patent applications filed in these areas represented 32% of worldwide patent filings between 2000 and 2004 – and are concentrated in the patent offices of Japan and the United States of America followed by the Republic of Korea, the EPO and China. The three fastest growing technical fields from 2000 to 2004 were medical technology (+32.2%), audio-visual technology (+28.3%) and information technology (+27.7%).

The WIPO Report is revealing in what it says about the changing geography of innovation. It also highlights the technologies in which tomorrow’s innovations lie. Best of all, it provides proof of the increased use of the patent system - and that bodes well for the future of intellectual property.