China Acquires Over 11,000 German Patents as Domestic Innovation Slows
Foreign Ownership of German Patents and the Impact on Innovation
China's Growing Patent Portfolio in Germany
BERLIN, June 2 (Reuters) - China has taken ownership of more than 11,300 patents developed in Germany over the past two decades, according to a study by the German Economic Institute (IW) commissioned by the Bertelsmann Foundation.
Breakdown of Foreign Patent Ownership in Germany
Nearly one in three inventions developed in Germany is owned by a foreign entity. Of those, almost a third are held by U.S. owners and about 11% by Swiss owners, the study showed on Tuesday.
Mechanical Engineering Sector Trends
The shift is especially pronounced in mechanical engineering, where patent applications rose to 4,300 in 2022 from 3,300 in 2000.
The study said China had been particularly active in acquiring technologies in the sector
Strategic Acquisitions and Market Imbalances
"German companies also hold patents abroad. That is part of normal competition," IW expert Oliver Koppel said.
But he said Beijing directed Western acquisitions strategically while keeping its own market relatively closed to foreign investors.
Concerns Over Technology Migration
"That is an imbalance," Koppel said, adding that Europe must examine more closely where strategically relevant technologies are migrating.
Germany's Declining Innovation Strength
Germany's domestic innovative strength is weakening due to insufficient investment in research and development, IW said.
R&D Spending Trends
Germany ranked third worldwide in R&D spending in 2000, when its outlays were twice as high as China's, but it had slipped to sixth place by 2021.
China's Rapid Increase in R&D Investment
China, by contrast, has increased its R&D spending twentyfold over the period, the institute said.
(Reporting by Rene Wagner, writing by Maria Martinez, Editing by Miranda Murray)
