Chapter 6: Science & Engineering Indicators 93

Patents Granted to Foreign Inventors

Foreign-owned patents represent nearly half (47 percent in 1991) of all patents granted in the United States. Moreover, the number of U.S. patents granted to foreign inventors increased in 1991, although the increase was smaller than that reported for those with U.S. origin (a 5.3-percent increase versus 7.6 percent). In 1991, foreign corporations owned nearly 82 percent of the foreign-origin U.S. patents, individuals owned 11 percent, and foreign governments owned just 1 percent. Since 1978, corporate ownership of foreign-origin U.S. patents has grown in importance as the share owned by individuals has declined.

Foreign patenting in the United States is highly concentrated by country of origin. In 1991, just five countries--Japan, Germany, Great Britain, France, and Canada--accounted for 80 percent of U.S. patents granted with foreign origin. (See figure 6-19.) The numbers of patents granted to inventors from these countries have generally increased. Of these five countries, only the Japanese share grew over the past 14 years. This growth, however, has been dramatic, with Japanese inventors receiving 22 percent of all U.S. patents in 1991 and 46 percent of all U.S. patents with foreign origin. In 1978, these shares were under 11 percent and 28 percent, respectively.

Patent shares accounted for by inventors from the top three European countries generally declined over the past 14 years: German inventors were granted 24 percent of U.S. patents with foreign origin in 1978; this share fell to 17 percent in 1991. The British share fell the most among the top three European countries, dropping from 11 percent in 1978 to 6 percent in 1991. Canadian inventors' share of U.S. patents granted declined in the late seventies and early eighties before showing evidence of reversing this trend in 1987 with small gains made in 1989 and 1991.

Comparing foreign patenting growth rates in the United States in the wake of the 1980s recession reveals the expanding roles of Japan and Europe as technology competitors and also identifies several other countries with a demonstrated capacity to generate new technologies. During the 1983-91 period, the average U.S. patenting growth rate was 8.2 percent per year among inventors from all foreign countries. Countries whose inventors demonstrated above average patent activity in the United States and also claimed over 100 patents in 1991 were

South Korea, 40.8 percent growth in patents per year (401 U.S. patents granted in 1991);
Taiwan, 38.8 percent per year (898 patents);
Spain, 15.0 percent per year (153 patents);
Israel, 13.7 percent per year (305 patents);
Japan, 11.4 percent per year (20,916 patents);
Finland, 9.3 percent per year (328 patents); and
Canada, 9.2 percent per year (2,030 patents).

During this same period, several other countries' inventors showed above average patent activity in the United States. These included

Hong Kong, 17.0 percent per year (49 U.S. patents granted in 1991);
Brazil, 15.5 percent per year (60); and
Ireland, 15.0 percent per year (55 patents).

The patenting growth rate for the United States during this time was 5.6 percent per year (50,895 patents). (Click here for footnote 38.)

Footnote 38:

Note that, despite the dramatic recent increase in patent activity by the newly industrialized economies of East Asia--particularly Taiwan and South Korea--these countries, as a group, accounted for just 1.4 percent of all U.S. patents granted in 1991 and under 3 percent of U.S. patents granted to foreign inventors.

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