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State of innovation Thomson Reuters 2016

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State of innovation Thomson Reuters 2016

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State of innovation Thomson Reuters 2016

  1. 1. DISRUPTIVE, GAME-CHANGING INNOVATION 2016 State of Innovation REUTERS
  2. 2. “ Valeo’s ambition is to bring the most innovative technologies into the cars that are driven every day by hundreds of millions of people. One definition perfectly describes our approach: innovation as an invention that has found a market…In a world that is more and more open, we promote an innovation of the widest possible scope, including partnerships with public research bodies, academic organizations, customers, and suppliers.” —Jacques Aschenbroich, CEO, Valeo
  3. 3. TABLE OF CONTENTS Introduction.....................................................................................................................................4 Observations Findings............................................................................................................. 5-6 Aerospace Defense............................7-12 Automotive..........................................13-18 Biotechnology....................................19-24 Cosmetics Wellbeing.....................25-30 Food, Beverage Tobacco................31-36 Home Appliances.............................. 37-42 Information Technology....................43-48 Medical Devices.................................49-54 Oil Gas........................................... 55-60 Pharmaceuticals................................61-66 Semiconductors.................................67-72 Telecommunications..........................73-78
  4. 4. 2016 State of Innovation stateofinnovation.com Introduction 4 DISRUPTIVE INNOVATIONS LEAD DOUBLE-DIGIT GROWTH It takes a village to do a lot of things these days, and innovation is no exception. 2015 was the year of many innovative firsts and it took lots of villages to get there. In fact, innovation over the last year was one of the most active in history with double-digit growth of 13.7 percent. This jump was the result of lots of villages working to find better ways of doing things and breakthrough science, technology and medicine. It was the year of Collabovation. Defining the trend Collabovation is a term used to represent the elegant convergence of collaboration, innovation, cultivation, cross-pollination and calibration, swirled into the powerful process of bringing inventions to life with strategic partners and suppliers. Coming up with a novel idea can be a feat in itself, but actually bringing one to market is an entirely different game. The Lifecycle of Innovation, from discovery and protection to commercialization and launch, involves everything from research and prototyping to intellectual- property protection and product monetization. In today’s fast-paced world of science, technology and medicine, where disruption and multi-tiered competition are the norm, it takes collabovation to truly succeed. Breaking through Think of the many breakthroughs that happened over the last year. It was the first time astronauts from different countries embarked on the longest human space mission by two men: American Scott Kelly and Russian Mikhail Kornienko, occupying the International Space Station for nearly a year. It was the first time self-driving cars were tested on public roadways in certain jurisdictions around the world. And, the first time a biosimilar drug was approved in the US, while certain other drugs were being tested on 3D printers. It was also the year when the Internet of Things (IoT) garnered mass appeal, allowing homeowners to manage their dwellings with omnipotent-like intelligence, while cloud storage became mainstream. These firsts were possible because of the massive investment in innovation–in collabovation–made by organizations around the world. Overall, global innovation activity saw a notable uptick over the last year, with Medical Devices, Home Appliances and Aerospace leading the charge. These sectors all experienced year-over-year, double-digit growth, as did Information Technology and Oil Gas. In fact, every sector was in the black outside one: Biotechnology, which decreased slightly given a leveling off in that industry. Moving the needle Collabovation is happening between corporations and universities. Government agencies and research centers. Start-ups and bellwethers. Physical and mental boundaries are being lifted. Like-minded, similar-goaled organizations are finding each other. A web of information is aligning partners and best practices in an effort to collaboratively innovate. This report showcases some of these instances, as well as uncovers key innovation trends for 2016. Examination of global patent activity provides a glimpse into what’s hot, what’s not, what’s coming next, who leads and which regions are the most active. Welcome to the 2016 State of Innovation. We invite you to ponder these pages and consider new partners with whom to collabovate. Vincent J. Caraher, President, Thomson Reuters IP Science
  5. 5. 2016 State of Innovation stateofinnovation.com Observations Findings 5 OBSERVATIONS FINDINGS Up, up and away Global innovation activity experienced gains across 11 of the 12 sectors throughout 2015, with the largest leaders being Medical Devices, Home Appliances and Aerospace Defense. This rebound follows prior year declines for Medical Devices and Aerospace, which had year-over-year innovation drops of 5 percent and 1 percent, respectively, while Home Appliances was flat. Semiconductor activity also fell in 2014, but saw a bump of 3 percent in 2015. The longer-term view, covering the seven years from 2009–2015 (inclusive), highlights just how robust and active innovators have been. The combined output across all 12 technology areas was on a consistent upward climb (Figure 1). The largest overall increase for the extended period was in Food, Beverage Tobacco, which skyrocketed 128.25 percent. Aerospace Defense and Home Appliances also experienced triple-digit jumps, as shown in Figure 2. Sign of the Times Looking across this seven-year span, it’s clear the figures reflect a sign of the times. The world was rebounding from the greatest economic crisis in the last 75 years, while technology had catapulted the Digital Era into the next stratosphere, creating opportunities heretofore unknown. This longer-view shift is indicative of how our world has been evolving. For example, the production of disease-resistant crops and genetically modified foods, aimed at ensuring an ample food supply for a world population projected to hit 10 billion later this century. The development of appliances that communicate with one another and reflect their owners’ preferences; the actualization of the IoT. The quest to explore space, understand the universe beyond our galaxy and find new frontiers for future humans—as well as equip defense teams for wars that require continued military investment. Research Innovation The relationship between research and innovation is well understood. Analysis shows that scientific and scholarly research typically precedes discovery and the protection of innovation rights by a few years. It’s therefore prudent to look at what topics, institutions and regions lead globally in research to get an even richer understanding of what the future holds. A look across the last decade and research related to the 12 technology areas, as contained in the Web of ScienceTM , 1,000,000 1,500,000 2,000,000 2,500,000 2015201420132012201120102009 0.00% 30.00% 60.00% 90.00% 120.00% 150.00% AllTechnology Telecommunications Semiconductors Pharmaceuticals OilGas MedicalDevices Food,BeverageTobacco HomeAppliances CosmeticsWellbeing InformationTechnology Biotechnology Automotive Aerospace Figure 1: Global Innovation Output Across 12 Sectors (2009–2015) Figure 2: Percentage Growth in Innovation Activity (2009–2015) Source: Derwent World Patents Index and Thomson Innovation Source: Derwent World Patents Index
  6. 6. 2016 State of Innovation stateofinnovation.com Observations Findings 6 shows that output related to these topics has returned to its pre-economic-crisis levels, as shown in Figure 3. As the tools for finding prior research become even more refined, researchers collaborate more with others and pure or basic research investments are sometimes married with innovation, causing the scholarly activity to even out. Innovation Drives the Future Innovation is a driver of economic success and growth. Companies and countries that consistently invest in innovation by prioritizing RD and allocating funds and resources for this activity are proven to be more successful than those that don’t. The Thomson Reuters Top 100 Global Innovators are an example of this. The honorees of this designation, based on a comprehensive, patent-based methodology, have consistently outperformed the SP 500 and/or MSCI World Index in terms of market-cap weighted RD investment, annual revenue and employment. And, regions like the UK, which has fewer RD and innovation incentives compared to Germany and Japan, has not made the Top 100 Global Innovators list in several years. As the process of innovation becomes more collaborative in our technologically driven world, it’s hard to imagine the trajectory of activity changing in the near future. Innovation drives the future. And the future is ours. Innovative disruptions are a hallmark of the Digital Era. With the proper balance of discovery, protection and commercialization, these numbers will continue to grow and our world will continue to evolve before our eyes. % Industry 2015 Volume 2014 Volume % Change 5% Aerospace Defense 71,633 62,162 15% 12% Automotive 166,867 153,872 8% 3% Biotechnology 41,624 42,584 -2% 1% Cosmetics Well Being 11,307 11,017 3% 2% Food, Beverage Tobacco 26,605 26,333 1% 6% Home Appliances 86,301 71,278 21% 31% Information Technology 429,806 380,325 13% 9% Medical Devices 118,658 93,462 27% 2% Oil Gas 27,556 24,158 14% 9% Pharmaceuticals 116,286 111,479 4% 8% Semiconductors 114,488 110,761 3% 12% Telecommunications 166,601 161,739 3% Source: Derwent World Patents Index Overall View of Innovation 250,000 300,000 350,000 400,000 20152014201320122011201020092008200720062005 Figure 3: Scientific Research Output Across 12 Technology Areas (2005–2015) Source: Web of Science 12% 3% 31% 1% 6% 2% 9% 9% 8% 2% 12% 5% 30%
  7. 7. 2016 State of Innovation stateofinnovation.com Aerospace Defense 7 AEROSPACE DEFENSE From dreamliners to space stations to unmanned military vehicles, the window on our world is changing. REUTERS/LUCAS JACKSON
  8. 8. 2016 State of Innovation stateofinnovation.com Aerospace Defense 8 COLONIZING THE MILKY WAY Matt Damon gave us a peek at what life may be like for the first settlers on Mars in the movie The Martian. As far-fetched as the idea of living on another planet may seem, it’s now projected that the first humans could inhabit Mars within the next 25 years.1 Such a feat is going to require an immense amount of innovation and collaboration as earthlings look to colonize Mars, and potentially other parts of our galaxy. In fact, it is reported that the US National Aeronautics and Space Administration (NASA) will spend $18.5 billion on its 2016 space exploration plan.2 Its goals this year include increasing utilization of the International Space Station (ISS) science and technology hardware by 70 percent and launching 13 science and cargo missions, among many other things. In the race to colonize space, partnerships abound. There are many public/private sector arrangements underway, related to the Collabovation theme mentioned earlier. The European Space Agency (ESA) recently launched an initiative to find private sector partners with which to explore space in its “Space Exploration as a Driver for Growth and Competitiveness: Opportunities for the Private Sector,” where it states: “ESA is looking into novel ways to advance its strategic goals for space exploration, based on strategic partnerships with the private sector, including entities from the space and nonspace industry.3 ” Similarly, articles about NASA partnering with Boeing, Elon Musk’s SpaceX and others reaffirm the commitment and passion to make history and be the first to get to Mars, or other parts of the galaxy and universe. “ The recent ‘Martian’ movie starring Matt Damon is science-fiction in 2016, but with NASA and ESA actively collaborating with private sector partners such as Boeing and SpaceX to provide innovative solutions for the financing and execution of space exploration missions, experts predict that human settlements will be operational on Mars within 25 years. Such a highly complex project will require massive innovation across a wide range of technologies, not just ‘spaceflight’ aspects of aerospace. To sustain and protect human life in extremely hostile alien environments will involve new solutions for food and water processing, power generation, communications, healthcare and more, so partners from ‘non-space’ industry sectors will also be major contributors and this will in turn drive further innovation for Earth-based applications.” —George Jack, Engineering Expert, Thomson Reuters 1 http://www.techinsider.io/buzz-aldrin-mars-plan-2016-4 2 https://www.nasa.gov/sites/default/files/files/NASA_FY2016_Summary_Brief_corrected.pdf 3 http://esamultimedia.esa.int/docs/hso/ESA_CFI__Space_Exploration_as_a_Driver_for_Growth_and_Competitiveness.pdf
  9. 9. 2016 State of Innovation stateofinnovation.com Aerospace Defense 9 AEROSPACE DEFENSE OVERVIEW % Subsectors 2015 2014 % Change 39% Production Techniques 22,392 18,823 19% 23% Advanced Materials 13,002 12,233 6% 13% Structures Systems 7,468 7,136 5% 12% Propulsion Plants 6,760 5,894 15% 11% Instrumentation 6,502 6,270 4% 2% Space Vehicles Satellite Technologies 1,424 1,156 23% Source: Derwent World Patents Index Top 10 Global Innovators–Aerospace Defense (2015) Company Country # Inventions United Technologies Corp US 716 State Grid Corp of China China 715 Airbus Operations France 620 Jiangxi Hongdu Aviation Ind Group Co Ltd China 617 Boeing US 531 General Electric US 424 LG S Korea 392 Siemens Germany 387 Toyota Japan 360 Hyundai S Korea 334 Source: Derwent World Patents Index Top 10 Space Technology Innovators–Asia (2011-2015) Company Country # Inventions Harbin Institute of Technology China 186 Korea Aerospace Research Institute S Korea 163 China Academy Launch Vehicle Technology China 157 Beijing Control Engineering Research Institute China 108 University Beijing Aeronautics Astronauts China 93 Shanghai Satellite Engineering Institute China 87 Beijing Institute Spacecraft Environmental Engineering China 77 Shanghai Aerospace System Engineering Research Institute China 72 Mitsubishi Electric Japan 69 Beijing Space Aerocraft Collectivity China 69 Source: Derwent World Patents Index 11% 2% 12% 23% 13% 39%
  10. 10. 2016 State of Innovation stateofinnovation.com Aerospace Defense 10 Top 10 Space Technology Innovators–Europe (2011-2015) Company Country # Inventions Airbus France 225 Energiya Rocket Russia 113 Information Satellite Systems Reshetnev Russia 80 Thales France 73 Center Nat Etud Spatiales France 42 Mechanical Engineering Research Institute Russia 61 Cosmic Scientific Production Centre Russia 41 Deut Zent Luft Raumfahrt Germany 32 Snecma France 24 Moscow Mars Experimental Construction Bureau Russia 19 Source: Derwent World Patents Index Top 10 Space Technology Innovators–North America (2011-2015) Company Country # Inventions Boeing US 221 Honeywell US 41 Lockheed Martin US 33 Raytheon US 31 NASA US National Aerospace Space US 29 Space Systems/Loral US 21 US Navy US 16 Hamilton Sundstrand US 15 Emcore Solar Power US 14 Qualcomm US 12 Source: Derwent World Patents Index Most Influential Scientific-Research Institutions in Aerospace (2005-2015) Institution Country # of Papers (WoS) Relative Citation Impact* University of Michigan System US 468 1.95 United States Department of Energy US 372 1.43 Delft University of Technology Netherlands 414 1.33 University of Texas Austin US 333 1.32 Centre National de la Recherche Scientifique (CNRS) France 551 1.25 Goddard Space Flight Center US 465 1.22 University of Florida US 312 1.21 US Air Force Research Laboratory US 512 1.19 Pennsylvania State University US 403 1.18 Pennsylvania Commonwealth System of Higher Education US 445 1.18 Source: Web of Science * Citation impact normalized against average for field and year of publication (n = 1.00)
  11. 11. 2016 State of Innovation stateofinnovation.com Aerospace Defense 11 Summary Innovation activity over the last year reflects man’s quest to conquer new frontiers, as well as push the boundaries of our daily flight expectations, with faster, larger and more frill-equipped airplanes than ever before. The Aerospace Defense sector saw a significant jump of 15 percent over prior year activity, with the largest jumps occurring in Space Vehicles Satellite Technologies (23 percent), followed by Production Techniques (19 percent) and Propulsion Plants (15 percent). There’s no denying the race is on to find a sustainable way for humans to inhabit space, as part of global strategies to handle the exploding human population and ill effects of climate change on earth. The international space race is just that, international. The top 10 innovators in this sector hail from the United States, China, France, South Korea, Germany and Japan. And, they include a mix of expected and unexpected companies, including United Technologies Corp., Airbus and Boeing as well as General Electric, LG Electronics and Toyota, respectively. The US leads in the impact of its academic research in aerospace, with 80 percent of the top 10 institutions coming from that country. European organizations take the two remaining top 10 spots, while Asian institutions are notably absent from those with impactful contributions. “ [Our most innovative asset is] the shared belief that our products are useful to society, and that we can help make the world a better place. For example, people all over the world want to continue to “go places”, and that will only be possible if we continue to reduce emissions, a very timely challenge…” —Pierre Fabre, Senior Executive Vice President, Research Technology, Innovation Safran
  12. 12. 2016 State of Innovation stateofinnovation.com Aerospace Defense 12REUTERS/MAX ROSSI
  13. 13. 2016 State of Innovation stateofinnovation.com Automotive 13REUTERS/THOMAS PETER AUTOMOTIVE As automobiles become more advanced computers, what’s to become of the pastime of taking a 4-cylinder combustion engine out for a Sunday drive?
  14. 14. 2016 State of Innovation stateofinnovation.com Automotive 14 ARTIFICIAL INTELLIGENCE ON WHEELS Over the last year, cars have evolved from being some of the most sophisticated computers on wheels to being advanced artificial-intelligence transportation chariots. Not only do today’s automobiles give drivers guidance when backing up, adjust to lane creep and intelligently adapt to weather conditions, they can also identify the mood and, coming soon, consumption habits of the driver based on steering-wheel sensors. This is all in addition to the vehicle’s already amazing ability to operate itself independently. The International Consumer Electronics Show (CES) in Las Vegas, Nevada, US, featured more automobile exhibitors than ever before this year, which brought the show organizers to create a “Vehicle Intelligence Marketplace” for the first time.4 Such rapid automotive advancement is the result of thousands of hours of research, development, experimentation and innovation by auto manufacturers and their partners around the world. Auto-collabovation is alive and well. Daily news headlines tout the latest partnerships in this space. For example, Renault and ARZA, in order to bring the electric vehicle market to Canadian masses5 ; Ford and Spotify, to enhance the musical experience of FordPass customers; and organizations like the Open Automotive Alliance (OAA), which aims to make automotive technology safer, more seamless and more intuitive.6 In today’s world, the realities of artificial intelligence stretch far beyond the reach of IBM’s Watson. We must start to think of and see our vehicles as the technological masters they are. “ Increased partnership between traditional vehicle manufacturers and information/ technology companies is already changing autonomous vehicles into advanced artificial-intelligence transportation chariots that can continually adapt to environmental conditions and driver ‘likes’. In today’s world, the realities of artificial intelligence stretch far beyond the reach of IBM’s Watson. We must start to think of and see our cars for the technological masters they are.” —Kevin Chapman, Lead Engineering Expert, Thomson Reuters 4 http://www.ces.tech/News/Press-Releases/CES-Press-Release.aspx?NodeID=ebcec984-2cf5-49ad-b7dc-f181cbf49932 5 http://www.automotiveworld.com/news-releases/renault-azra-invests-40-million-canadian-transport-electrification/ 6 http://www.openautoalliance.net/#about
  15. 15. 2016 State of Innovation stateofinnovation.com Automotive 15 AUTOMOTIVE OVERVIEW % Subsectors 2015 2014 % Change 21% Alternative Powered Vehicles 37,844 32,973 15% 11% Navigation Systems 19,753 18,538 7% 11% Safety 18,551 18,893 -2% 11% Transmission 20,175 18,484 9% 10% Seats, Seatbelts and Airbags 18,165 13,596 34% 7% Suspension Systems 12,827 11,003 17% 6% Pollution Control 10,114 9,677 5% 6% Steering Systems 10,841 11,599 -7% 5% Engine Design and Systems 7,845 7,334 7% 5% Security Systems 8,627 8,360 3% 4% Braking Systems 7,654 6,831 12% 3% Entertainment Systems 4,659 4,267 9% Source: Derwent World Patents Index Top 10 Global Innovators–Automotive (2015) Company Country # Inventions Toyota Japan 4,214 Hyundai S Korea 2,469 Bosch Germany 2,390 Denso Japan 2,169 Honda Japan 2,039 Ford US 1,837 Daimler Germany 1,575 GM US 1,435 Beiqi Foton China 1,223 Nissan Japan 1,188 Sources: Derwent World Patents Index Top 10 Alternative-Powered Vehicle Innovators–Asia (2011-2015) Company Country # Inventions Toyota Japan 9,807 Hyundai S Korea 2,827 Honda Japan 2,732 Nissan Japan 2,633 Denso Japan 2,591 Samsung S Korea 2,515 LG S Korea 2,051 Panasonic Japan 1,970 Toyoda Japan 1,634 Sumitomo Electric Japan 1,492 Source: Derwent World Patents Index 21% 11% 11% 11% 10% 7% 6% 6% 5% 5% 4% 3% 30%
  16. 16. 2016 State of Innovation stateofinnovation.com Automotive 16 Top 10 Alternative-Powered Vehicle Innovators–Europe (2011-2015) Company Country # Inventions Bosch Germany 3057 Daimler Germany 1705 Peugeot Citroen France 709 BMW Germany 637 Siemens Germany 624 Renault France 580 Volkswagen Germany 560 Audi Germany 477 Valeo France 411 Continental Germany 386 Source: Derwent World Patents Index Top 10 Alternative-Powered Vehicle Innovators–North America (2011-2015) Company Country # Inventions General Motors (GM) US 1614 Ford US 1517 General Electric US 355 Caterpillar US 168 Johnson Controls Technology US 156 Tesla Motors US 149 DuPont US 117 Remy Technologies US 109 Qualcomm US 88 IBM US 83 Source: Derwent World Patents Index Most Prolific Scientific Research Institutions in Automotive (2005–2015) Institution Country # of Papers (WoS) University of Michigan US 292 Ford Motor Company US 209 Polytechnic University of Turin Italy 187 Technical University of Munich Germany 173 Shanghai Jiao Tong University China 161 Indian Institute of Technology System India 158 Ohio State University US 151 RWTH Aachen Germany 135 Chalmers University of Technology Sweden 134 Seoul National University S Korea 131 Source: Web of Science
  17. 17. 2016 State of Innovation stateofinnovation.com Automotive 17 Summary Automotive innovation accelerated by 8 percent from year-end 2014 to year-end 2015. All but two of the 12 subsectors jumped up, with the largest gains in Seats, Seatbelts Airbags (34 percent) followed by Suspension Systems (17 percent) and Alternative Powered Vehicles (15 percent), respectively. Asia continues to dominate the field overall with 60 percent of the Top 10 headquartered there. Japan’s Toyota takes the top spot again, followed by the same top-five-priority- order of last year: Hyundai (South Korea), Bosch (Germany), Denso (Japan) and Honda (Japan). China joined the top 10 ranks for the first time, coming in ninth overall with Beiqi Foton, the country’s largest truck manufacturer. This is despite recent news of the company’s sales down 15.3 percent in March 2016 over the same period one year earlier.7 The US, Germany and Japan round out the bottom half of the Top 10 with Ford (US), Daimler (Germany), GM (US) and Nissan (Japan) taking sixth, seventh, eighth and tenth places, respectively. In terms of alternative-powered vehicle innovation, Japan’s Toyota is in a category almost unto itself with nearly 10,000 unique inventions in that area alone last year. The next closest competitor in that space is Germany’s Bosch, with just over 3,000 unique inventions. Germany and France are the only two countries in Europe in the top 10 for Alternative-Powered Vehicles, with Germany taking seven of the 10 spots. The US occupied all of the top 10 in North America, with GM and Ford pulling into the lead. The most prolific automotive research institutions have a more diverse global footprint, representing the US, Italy, Germany, China, India, Sweden and South Korea. Nine of the top 10 research institutions doing work in this space are the same as the prior year—the newcomer being Chalmers University of Technology in Sweden. “ Although driverless vehicles won’t be ruling the roads in 2016, data shows that they will likely become a reality in the years to come. Our fascination with this emergent technology continues to abound. There was a time when it was difficult to imagine the ability to get from one point to another in a vehicle without being completely alert and in control of the automobile. But if we’ve learned anything in the 21st century, it’s that technology seems to be boundless, as long as you have the right collaborators at the helm.” —Vin Caraher, President, Thomson Reuters IP Science 7 http://www.reuters.com/article/idUSL3N17A3AE
  18. 18. 2016 State of Innovation stateofinnovation.com Automotive 18 REUTERS/TIM WIMBORNE
  19. 19. 2016 State of Innovation stateofinnovation.com Biotechnology 19 BIOTECHNOLOGY The sequencing of the human genome is leading to breakthroughs in and beyond medical treatments. What doesn’t biotech have its hand in today?
  20. 20. 2016 State of Innovation stateofinnovation.com Biotechnology 20 GENETICALLY MODIFIED LIFE Biotechnology experienced a large number of firsts over the last year. One of the most significant, and potentially most life transforming, was that of the CRISPR (clustered regularly interspaced short palindromic repeats) initiative and the editing of a human- embryo germline. CRISPR “interference” involved making targeted modifications to segments of DNA to alter its immunity. Such work has implications not only for humans, but also for food crops and other plants and animals. Another set of firsts involved a series of bio-based approvals by the US Food and Drug Administration (FDA), including the first biospecific antibody: Amgen’s Blincyto; the first biosimilar drug: Novartis’ Zarxio; and the first biotech food animal: Aquabounty Technologies Inc.’s salmon, which grows faster than farmed fish. There’s no disputing that the advent of biotechnology has created an experimental sandbox for everything from genetically manipulating DNA to modifying the composition of plants and printing drugs using bio-organisms. While this is cutting-edge work, the pace of innovation fell slightly short of where it was a year earlier. “ Governments and payers are counting on biosimilars to revolutionize health care by reducing the cost of important biologics and increasing access to life-saving drugs. For that to happen, the follow-on biologics (FOBs) will have to deliver the power of the reference drugs at a price financially strapped countries can afford and gain the confidence of the marketplace.” —Mari Serebrov, Regulatory Editor, BioWorld
  21. 21. 2016 State of Innovation stateofinnovation.com Biotechnology 21 BIOTECHNOLOGY OVERVIEW % Subsectors 2015 2014 % Change 70% General biotechnology 30,197 29,374 3% 13% Diagnosis of diseases 5,614 6,984 -20% 10% Cancer treatment 4,412 4,855 -9% 5% Genetically modified crops 1,969 2,153 -9% 2% Drug discovery 824 951 -13% Source: Derwent World Patents Index Top 10 Global Biotechnology Innovators (2015) Company Country # Inventions DuPont US 407 University of Jiangnan China 287 Monsanto US 229 Roche Switzerland 203 University of Zhejiang China 200 Rural Development Administration S Korea 191 University of California US 184 Centre National de la Recherche Scientifique (CNRS) France 166 Lanzhou Veterinary Res Inst China Agric China 165 Institut National de la Santé et de la Recherche Médicale (INSERM) France 160 Source: Derwent World Patents Index Top 10 Biotech-In-Cancer Innovators–Asia (2011-2015) Company Country # Inventions Samsung S Korea 104 University Fudan China 103 Seoul National University S Korea 81 University Yonsei S Korea 77 Agency for Science Technology Research, A*STAR Singapore 74 Korea Research Institute of Bioscience Biotechnology S Korea 71 University Shanghai Jiaotong China 71 Peking University China 69 Suzhou Puluoda Biological Technology Co China 68 Osaka University Japan 65 Source: Derwent World Patents Index 70% 13% 10% 5% 2% 30%
  22. 22. 2016 State of Innovation stateofinnovation.com Biotechnology 22 Top 10 Biotech-In-Cancer Innovators–Europe (2011-2015) Company Country # Inventions Roche Switzerland 335 Institut National de la Santé et de la Recherche Médicale (INSERM) France 244 CNRS France 195 Novartis Switzerland 161 Sanofi France 136 UCL Business UK 66 Glaxo Group UK 65 Deutsches Krebsforschungszentrum Germany 59 Bayer Pharmaceutical Germany 56 Yeda Research Development Company Israel 48 Source: Derwent World Patents Index Top 10 Biotech-In-Cancer Innovators–North America (2011-2015) Company Country # Inventions Genentech US 266 University of California US 241 US Department of Health US 186 University of Texas System US 170 John Hopkins University US 140 Abbvie US 134 Dana Farber Cancer Institute US 127 General Hospital US 116 Harvard US 111 University of Pennsylvania US 109 Source: Derwent World Patents Index Most Influential Scientific Research Institutions In Biotech (2005-2015) Institution Country # of Papers (WoS) Category Normalized Citation Impact Broad Institute US 485 7.43 European Molecular Biology Lab Germany 801 4.46 Massachusetts Institute of Technology US 1,556 4.25 Wellcome Trust Sanger Institute UK 755 4.11 Howard Hughes Medical Institute US 913 4.10 Memorial Sloan Kettering Cancer Center US 375 3.26 Harvard University US 3,288 3.07 Lawrence Berkeley National Lab US 623 3.03 Dana-Farber Cancer Institute US 425 2.90 VA Boston Healthcare System US 594 2.89 Source: Web of Science
  23. 23. 2016 State of Innovation stateofinnovation.com Biotechnology 23 Summary Biotech was the only technology area of the 12 studied that decreased its year-over-year innovation output, experiencing a 2 percent decline over 2014. This is after having had a 7 percent overall increase from 2013. And all but one of the subsectors, General Biotechnology, declined from the earlier period, with the steepest drops in the Diagnosis of Diseases (20 percent) and Drug Discovery (13 percent). China, France, Germany, South Korea and the US lead the world in biotech innovation. China and the US each have three of the top 10 spots, followed by France with two, while Germany and South Korea split the remaining two. Biotechers are clear collabovators. Three of the top 10 global biotech innovators are universities and seven of the top 10 are either a university or research center. No other sector has this mix in its top 10. The trend continues beyond the global top 10 to regional sub-sector leaders in cancer- treatment innovation as well, which comprises a mix of private and public institutions. The US dominates biotech scientific-and-scholarly research output with 80 percent of the top 10. The remaining two institutions are from Europe, one of which is headquartered in the UK and the other is in Germany. Once again the Broad Institute takes the lead spot with the most impactful research, whereas MIT was bumped from second to third place by the European Molecular Biology Lab. It appears that Biotech has leveled off somewhat, but it remains to be seen whether this sector will pull ahead again in the future. The technologies are still in early stages and the players are still coming into their own. One thing is certain, the industry is one to watch as the output of its activity is sure to have an immense impact on all life: human, plant, animal, aquatic and more. “ Collaboration is critical to igniting innovation; we work closely with our customers, and with each other. Our spirit of collaboration extends to our 46 technology platforms, which range from adhesives and abrasives, to ceramics and light management. We leverage those technologies across all our businesses and subsidiaries to create unique and relevant products for customers.” —Inge Thulin, Chairman, President CEO, 3M
  24. 24. 2016 State of Innovation stateofinnovation.com Biotechnology 24
  25. 25. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 25 COSMETICS WELLBEING Computers aren’t the only things getting smarter—your personal care products are getting to know you, too. REUTERS/RAFAEL MARCHANTE
  26. 26. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 26 SOCIAL MEDIA SPURS COSMETICS SECTOR We live in the era of here-and-now. From Instagram and OoVoo to Snapchat and Vine, social media and other outlets set new beauty standards with images of the Kardashians, Beyonce and Taylor Swift leading the way. Selfies and facetime show us daily where we need to primp, plump and perfect, spurring today’s cosmetic-conscious fad. The American Society of Plastic Surgeons recently reported there were 6.7 million Botox procedures done in 2015, 1 percent more than the prior year, as well as 27.5 thousand lip-augmentation surgeries (a 48 percent increase from 2000) and 12.7 thousand cheek-implant procedures (up 21 percent from 2000)—and this just starts to scratch the surface of the litany of possible cosmetic surgeries available.8 Bigger is better in today’s beauty-bingeing world, and cosmetic innovations are making it all possible. “ Fuelled by the immediacy and intense magnifying focus of social media images, being ‘close-up ready’ has never been more desirable nor more demanding. Consumers are better informed than ever before and have high expectations: the distinction between cosmetics and pharmaceuticals becomes ever more blurred year on year and high-tech delivery formulations become the norm. The instant worldwide exposure of new products and technology has brought major new players into the market, particularly from the innovative Asian beauty sector. Maybe the emergence of companies traditionally less known for cosmetics and personal care shouldn’t be any surprise, as modern high performance beauty products incorporate cutting-edge pigment formulations, reflective microparticles and polymers for an Insta-perfect finish.” —Peta Leggatt, DWPI Content Specialist-Pharmaceuticals, Thomson Reuters 8 http://www.plasticsurgery.org/Documents/news-resources/statistics/2015-statistics/2015-plastic-surgery-statistics-report.pdf
  27. 27. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 27 COSMETICS WELLBEING OVERVIEW % Subsectors 2015 2014 % Change 41% Skin 6,063 5,407 12% 38% Make-up 5,597 5,722 -2% 17% Hair 2,522 2,614 -4% 2% Perfume 289 342 -15% 2% Antiperspirant 264 274 -4% Source: Derwent World Patents Index Top 10 Global Innovators–Cosmetics Well Being (2015) Company Country # Inventions LG Household Healthcare S Korea 315 L'Oreal France 314 Kao Japan 214 Henkel Germany 154 PG US 144 AmorePacific S Korea 125 Aesthetic Beijing Technology Co China 87 Unilever Netherlands / UK 75 Beiersdorf Germany 73 Kose Japan 70 Source: Derwent World Patents Index Top 10 Make-Up Innovators–Asia (2011-2015) Company Country # Inventions KAO Japan 776 AmorePacific S Korea 534 LG S Korea 397 Shiseido Japan 356 Kose Japan 307 Pola Chem Japan 178 Lion Japan 144 Nippon Menard Keshohin Japan 142 Nippon Oil Fats Japan 110 Fujifilm Japan 91 Source: Derwent World Patents Index 41% 38% 17% 2%2%
  28. 28. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 28 Top 10 Make-Up Innovators–Europe (2011-2015) Company Country # Inventions L'Oreal France 1,636 Henkel CO Germany 271 BASF Germany 214 Unilever Netherlands / UK 202 Beiersdorf Germany 198 CNRS France 107 DSM IP Assets BV Netherlands 91 Merck Patent Germany 81 Evonik DeGussa Germany 77 Symrise Germany 52 Source: Derwent World Patents Index Top 10 Make-Up Innovators–North America (2011-2015) Company Country # Inventions Procter Gamble US 296 DuPont US 156 Dow Corning US 107 Celanese US 99 Avon US 96 Allergan US 91 Johnson Johnson US 73 Dow Global Technologies US 61 ELC Management US 51 Colgate Palmolive US 41 Source: Derwent World Patents Index Most Prolific Scientific Research Institutions In Cosmetics (2005–2015) Institution Country # of Papers (WoS) University of Sao Paulo Brazil 177 US FDA US 108 Procter Gamble US 103 Cosmetic Ingredient Review US 102 Seoul National University S Korea 88 Harvard University US 83 Chinese Academy of Sciences China 81 State University of Campinas Brazil 78 University of California Los Angeles US 70 University of California San Francisco US 68 Source: Web of Science
  29. 29. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 29 Summary Despite plastic surgeons being busier than ever (skin-related innovation is up 12 percent), the bulk of the cosmetic subsectors dipped over the prior year. Fragrances experienced the largest drop, of 15 percent. Nevertheless, Cosmetics Well Being came out on the positive side overall, with a modest gain of 3 percent over 2014. The world’s most active Cosmetics Well Being innovator is, surprisingly, South Korea’s LG Household Healthcare, part of the LG family of businesses focused on helping customers realize their “beauty, lifestyle and culture dreams.” This is the first time since the inception of the annual State of Innovation that a traditional cosmetics company has been trumped by a technology-based company, yet another example of an organization (LG) that’s spreading its wings into tangential areas. In the Make-up subsector, L’Oreal leads the pack with more than twice as many inventions (1,636) as the next nearest innovator, KAO (776). This continues L’Oreal’s leadership streak in Make-up, which it has consistently dominated since we’ve been tracking the field. Asia continues to have a strong foothold in this sector, with Japan leading the way. Germany has the most significant presence in Europe, as more chemical companies branch into cosmeceuticals. In the US, it’s a combination of consumer-product and chemical companies that are driving beautification. Brazil once again takes the top spot in terms of cosmetics- related scientific research, with the University of Sao Paulo and State University of Campinas taking the first and eighth spots in terms of research output, respectively. This perhaps isn’t a huge surprise as Brazil is also among the top five nations in the world in terms of the overall number of aesthetic plastic surgeries performed annually.9 There’s no doubt about it: our socially connected world, technology, nano-particles, new molecular entities and the accessibility of new treatments are driving a boom in beautification. The prospects are ripe for this sector to continue its upward climb. We may not all be look-alikes for Jennifer Aniston, recently named the 2016 World’s Most Beautiful Woman by People magazine, but today’s innovations certainly make replicating “that look” a lot easier.10 “ The French National Center for Scientific Research (CNRS) was established to carry out research. Performed by more than 1,000 units throughout France and abroad, this research improves knowledge, some of which results in breakthrough innovation. Technology transfer is a logical extension of our research activities, entrusted to more than 30,000 staff and partly led in partnership with industry.” —Marie-Pierre Comets, Director of Innovation Business Relations, CNRS 9 http://www.prnewswire.com/news-releases/the-international-society-of-aesthetic-plastic-surgery-releases-global-statistics-on-cosmetic- procedures-300108852.html 10 http://www.people.com/people/package/article/0,,20998070_21001278,00.html
  30. 30. 2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 30 REUTERS/ISSEI KATO
  31. 31. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 31REUTERS/ALESSIA PIERDOMENICO FOOD, BEVERAGE TOBACCO If history repeats itself, can developing nations change health outcomes and still be the latest frontier for Tobacco and Beverage innovation?
  32. 32. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 32 TOBACCO OUT-INNOVATES FOOD AND BEVERAGES Despite warnings that they’re bad for your health, cigarettes continue to dominate the world stage in the category of Food, Beverage Tobacco innovation, while also topping the charts for companies with strong dividend payouts. A recent Thomson Reuters Lipper Fund analysis stated that “CME Group, Dow Chemicals and Philip Morris are companies with strong fundamentals…Philip Morris is seeing good demand for cigarettes and enjoying healthy margins as its business looks stronger than ever…If you are looking for strong dividend payers, these companies may be worth a second look.”11 Where innovation really needs to happen, however, is in the area of Food, for better ways to feed the world’s growing population and produce healthy, non-processed alternatives that don’t add to negative health effects. 2016 will be the year when consumer demand for “real” food starts to seriously take effect as a decreased appetite for GMO and non-natural foods gains momentum. GMO may be the way to go to make certain staple crops have higher yields and be more defect-resistant, however a growing number of consumers are demanding healthy food products with clear labeling. Similarly, the Beverage market continues to move away from sugary drinks toward healthy drinks and teas. “ We know that our food may contain a wide range of potentially hazardous substances. But interesting solutions abound. The EFSA European Food Consumption Database is using data in innovative ways to identify and help reduce the risk of contaminated food, particularly among vulnerable populations.” —Davide Arcella, Scientific Officer European Food Safety Authority (9billionbowls.com) 11 http://lipperalpha.financial.thomsonreuters.com/2016/04/top-dividend-payers-include-cigarettes-chemicals-and-financials/
  33. 33. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 33 FOOD, BEVERAGE TOBACCO OVERVIEW % Subsectors 2015 2014 % Change 30% Meat 8,256 9,033 -9% 28% Brewing 7,662 6,479 18% 26% Bakery 7,267 6,841 6% 14% Tobacco 3,923 4,215 -7% 2% SugarStarch 667 689 -3% Source: Derwent World Patents Index Top 10 Global Innovators–Food, Beverage Tobacco (2015) Company Country # Inventions China Tobacco Hubei Ind Corp China 1122 Qingdao Xiuxian Foods Co. China 165 Philip Morris US 121 University of Guangxi China 118 Inst Agro Food Science Technology Chinese China 114 University of Jiangnan China 114 University of Zhejiang Ocean China 104 Hefei Bulaochuanqi Health Science Technology China 87 Wuhu Hongyang Food China 72 Anhui Xianzhiyuan Food China 69 Source: Derwent World Patents Index Top 10 Brewing Innovators–Asia (2011-2015) Company Country # Inventions University of Jiangnan China 217 Harbin Shanbao Wine Ind China 166 Luzhou Pingchuang Technology China 155 Korea Food Research Institute S Korea 109 Rural Development Administration Korea S Korea 89 Sapporo Breweries Japan 83 Guangming Dairy Ind China 82 Suntory Holdings Japan 81 Kirin Japan 80 Asahi Breweries Japan 73 Source: Derwent World Patents Index 30% 28% 26% 14% 2%
  34. 34. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 34 Top 10 Brewing Innovators–Europe (2011–2015) Company Country # Inventions Novozymes Denmark 105 DSM Netherlands 89 Chr Hansen Denmark 45 Nestec Switzerland 40 Danone France 35 Krones Germany 32 IFP Energies Nouvelle France 21 GEA Brewery Systems Germany 18 Bayer Cropscience Germany 16 LeSaffre France 15 Source: Derwent World Patents Index Top 10 Brewing Innovators–North America (2011–2015) Company Country # Inventions Danisco US 150 Butamax Advanced Biofuels US 31 Codexis US 22 Coskata US 22 BP North America US 21 University of California US 18 US Secretary of Agriculture US 18 Poet Res Inc US 16 Monsanto US 14 Mascoma US 13 Source: Derwent World Patents Index Most Influential Scientific Research Institutions in Food Science Technology (2005 -2015) Name Country # of Papers (WoS) Category Normalized Citation Impact University of British Columbia Canada 431 1.93 Universiy of Lleida Spain 583 1.88 Polytechnic Institute of Braganca Portugal 316 1.79 University of Massachusetts System USA 824 1.73 Nanchang University China 415 1.66 Dresden University of Technology Germany 362 1.63 Rovira I Virgili Univeristy Spain 343 1.57 University of Melbourne Australia 306 1.55 University of Barcelona Spain 518 1.55 VTT Technical Research Centre of Finland Finland 314 1.54 Source: Web of Science
  35. 35. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 35 Summary While food-related innovation can be found in the Biotechnology sector where GMO crops and engineered- organism inventions are categorized, the Food, Beverage Tobacco technology area covers inventions specific to the manufacturing and composition of items outside of what is genetically modified. The sector remained predominantly flat over the last year, growing by just 1 percent or about 300 inventions more than the prior period. The largest growth was in the area of Brewing, which bubbled over 18 percent to 7,662 unique innovations last year, followed by Bakery, which puffed up 6 percent. Meat, Tobacco and Sugar Starch all experienced declines. The top 10 most active innovators in this category are all from China except one: Philip Morris in the US. This makes logical sense since China has the world’s largest population, which it will need to find a way to sustain in the coming decades as earth’s population nears 10 billion people, and smoking is still an accepted habit in this culture. China Tobacco Hubei Industries Corp. is the most prolific innovator across the entire sector, with 1,122 unique inventions, followed by Qingdao Xiuxian Foods Co., Philip Morris, University of Guangxi and Inst Agro Food Science Technology Chinese, all of which had 165 or fewer inventions for the same period. This mix of organizations gives a glimpse into their focus and priorities. In terms of Brewing innovation, China again leads the world, being home to the three most active Brewing innovators globally: University of Jiangnan (217 inventions), Harbin Shinbao Wine Industries (166 inventions), and Luzhou Pingchuang Technology (155 inventions). “ The United States and China alone represent 68 percent of all of the patent documents associated with crop breeding around the world. These two countries are larger than the closest competing country by at least a factor of five.” —Bob Stembridge, Senior IP Analyst, Thomson Reuters
  36. 36. 2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 36REUTERS/DANIEL MUNOZ
  37. 37. 2016 State of Innovation stateofinnovation.com Home Appliances 37 HOME APPLIANCES Will our appliances still need us when the Internet of Things takes over? REUTERS/REGIS DUVIGNAU
  38. 38. 2016 State of Innovation stateofinnovation.com Home Appliances 38 TODAY’S CONNECTED HOME The lyrics of a popular folk song for children read: “The head bone’s connected to the…neck bone; the neck bone’s connected to the…back bone; the back bone’s connected to the…thigh bone…” and so on. There could be a new take on this regarding our homes today. It might go something like this: “The smart phone’s connected to the…coffee maker; the coffee maker’s connected to the…refrigerator; the refrigerator’s connected to the…thermostat; the thermostat’s connected to the…garage door…” and so on. This isn’t such a far-fetched concept. Today’s connected homes are technologically linked in ways we couldn’t have imagined a decade ago. And, it’s exactly this connectivity that’s driving much of the innovation in Home Appliances. The Internet of Things (IoT) has brought changes to the way we live and what we expect. New technologies incorporated into our homes, offices, clothing and appliances make them smarter, more efficient and better managers of us. “The IoT revolution will offer us opportunities and ease-of-use we could have never imagined, but suddenly find ourselves unable to live without…We need to give IoT time to thrive, and identify the markets for it that make sense. The Internet of Things is really about finding new places that make sense for the Internet. Let consumers decide what their next Internet will be,” said Shawn DuBravac, chief economist of the Consumer Technology Association (CTA) and author of Digital Destiny: How the New Age of Data Will Transform the Way We Live, Work, and Communicate.12 “BlackBerry began as a startup company that invented mobile computing. I can say without reservation that the spirit of innovation, the drive to continue to improve, is alive and well in this company. Every part of BlackBerry is driven by the desire to create the most productive, secure and private solutions in the mobile marketplace— that includes revolutionary smartphone features, software that makes critical business and government communications more secure, and coming up with new ways of enabling devices to communicate with one another through the Internet of Things (IoT).” —John Chen, Executive Chairman CEO, BlackBerry 12 http://www.cio.com/article/3019286/ces/what-will-the-internet-of-things-be-when-it-grows-up.html
  39. 39. 2016 State of Innovation stateofinnovation.com Home Appliances 39 HOME APPLIANCES OVERVIEW % Subsectors 2015 2014 % Change 43% Kitchen 39,026 33,590 16% 34% Heating/Air Conditioning 30,552 24,316 26% 9% Household Cleaning 8,173 6,718 22% 7% Human Hygiene 6,717 5,203 29% 7% Laundry 6,402 5,659 13% Source: Derwent World Patents Index Top 10 Global Innovators–Home Appliances (2015) Company Country # Inventions Midea Group China 5,427 Zhuhai Gree Electric Appliances China 1,995 Haier Group China 1,315 Panasonic Japan 949 Mitsubishi Electric Japan 948 Samsung S Korea 736 BSH Hausgeräte Germany 697 LG S Korea 690 Hitachi Kucho System Japan 460 Daikin Kogyo Japan 446 Source: Derwent World Patents Index Top 10 Kitchen Innovators–Asia (2011-2015) Company Country # Inventions Midea Group China 3,309 Panasonic Japan 3,102 Mitsubishi Electric Japan 2,348 LG S Korea 2,234 Haier Group China 1,649 Joyoung China 1,538 Hitachi Kucho Japan 1,188 Sharp Japan 916 Toshiba Japan 907 Zhuhai Gree Electric Appliances China 880 Source: Derwent World Patents Index 43% 34% 9% 7% 7%
  40. 40. 2016 State of Innovation stateofinnovation.com Home Appliances 40 Top 10 Kitchen Innovators–Europe (2011-2015) Company Country # Inventions BSH Hausgeräte Germany 2,905 SEB Sweden 389 Electrolux Sweden 320 Nestec Switzerland 320 Philips Netherlands 318 Arcelik Turkey 253 Liebherr Hausgeraete Germany 237 Miele Cie Germany 234 Rational Germany 145 EGO Elektro-Geraetebau Germany 135 Source: Derwent World Patents Index Top 10 Kitchen Innovators–North America (2011-2015) Company Country # Inventions Whirlpool US 696 General Electric US 376 Carrier US 220 Johnson Controls US 76 Trane Int. US 65 Conair US 64 Thermo King US 63 DuPont US 60 Kraft Foods US 53 Illinois Tool Works US 52 Source: Derwent World Patents Index Most Prolific Scientific Research Institutions in Home Appliances (2005–2015) Institution Country # of Papers (WoS) University of Zaragoza Spain 113 University of California Berkeley US 63 National Cheng Kung University Taiwan 53 Chinese Academy of Sciences China 44 Tsinghua University China 43 Polytechnic University of Milan Italy 40 Waseda University Japan 36 University of Tokyo Japan 35 Tohoku University Japan 35 Kyoto University Japan 33 Source: Web of Science
  41. 41. 2016 State of Innovation stateofinnovation.com Home Appliances 41 Summary Home Appliances is cleaning house in terms of its ranking on the innovation-activity barometer. The industry experienced 21 percent year-over-year growth, with all subsectors seeing double-digit jumps. The most active subsector is Kitchens, however the largest increase occurred in Human Hygiene, which was up 29 percent over the prior period. Human Hygiene items include things such as a body scrub brush with a built-in soap dispenser, hair-styling devices and nail clippers, to name a few. Asia is the undisputed leader in Home Appliance innovation. All but one of the top 10 innovators reside there, the lone wolf being BSH Hausgeräte, based in Germany. China takes the top three spots with Midea Group, Zhuhai Gree Electric Appliances and Haier Group, respectively. In the Kitchen subsector, again Asia dominates, with Midea Group (China) and Panasonic (Japan) being the most active globally. The world’s third most active Kitchen innovator is BSH Hausgeräte (Germany), followed by Mitsubishi Electronics Home Appliances (Japan) and LG Electronics (South Korea). Asia is also home to 70 percent of the world’s top 10 most prolific scientific-research institutions with a focus on home appliances. Japan leads with four, followed by China with two and Taiwan with one. But the most active in terms of research-paper out by far is the University of Zaragoza in Spain (113 papers) and the University of California Berkeley (63 papers). There is no shortage of videos that portray what the future home may look like. If they are any indication of what’s to come, this sector is sure to continue seeing increases in innovation as the world is technologically modernized. June and Ward Cleaver would be astonished to see what a difference 50-plus years can make. “ Our objectives are to overcome scientific and technological barriers in order to develop innovations that can be used by the industry to create wealth and jobs and to promote the emergence of a sustainable energy mix. Our innovation model is underpinned by dual know-how: strong knowledge of the market needs and a scientific approach of the highest level. Beyond science, we take into account the economic, societal and environmental constraints associated with the development of any innovation.” —Didier Houssin, Chairman CEO, IFPEN (IFP Energie Nouvelles)
  42. 42. 2016 State of Innovation stateofinnovation.com Home Appliances 42
  43. 43. 2016 State of Innovation stateofinnovation.com Information Technology 43 INFORMATION TECHNOLOGY From the cloud to computers and blockchain, this is the neural net of technology.
  44. 44. 2016 State of Innovation stateofinnovation.com Information Technology 44 PUSHING THE BOUNDARIES OF WHAT WE THINK IS POSSIBLE The IoT is a major contributor to what’s driving the Information Technology (IT) boom with its increased demand for software, sensors and chips to connect our homes, cars and gadgets to the Internet. In fact, it’s predicted that there will be 22 billion IoT installed devices by 2018.13 Cloud-based technology is another advancement that’s also pushing IT boundaries. It’s expected that at least half of IT spending will be cloud-related in the next two years, with it reaching 60 percent of all IT infrastructure and 60 -70 percent of all software, services and technology spending by 2020.14 Add to these technological trends things such as cognitive computing, artificial intelligence, virtual reality and blockchain, among many others, and it’s clear why IT is the place to be. It’s the underpinning and connective tissue of so many technological advancements, making it (IT) the true cornerstone of the Digital Age. “ Information Technology (IT) is the true cornerstone of the Digital Age, and with the world’s data estimated to increase 800% by 2020 driven by the Internet of Things (IoT), major IT trends such as Cloud computing and Cognitive computing will rapidly develop to provide the flexibility and intelligence required to store, analyze and provide services based on this vast repository of human knowledge.” —George Jack, Engineering Expert, Thomson Reuters 13 http://www.forbes.com/sites/sap/2015/11/05/idc-releases-top-ten-2016-it-market-predictions/#222cac383e6b 14 http://www.forbes.com/sites/sap/2015/11/05/idc-releases-top-ten-2016-it-market-predictions/#222cac383e6b
  45. 45. 2016 State of Innovation stateofinnovation.com Information Technology 45 INFORMATION TECHNOLOGY OVERVIEW % Subsectors 2015 2014 % Change 82% Computing 387,097 340,386 14% 7% Other Peripherals 33,148 29,550 12% 5% Printers 24,752 23,359 6% 3% Smart Media 13,523 13,494 0% 2% Screens 8,112 7,692 5% 1% Scanners 4,471 4,510 -1% Source: Derwent World Patents Index Top 10 Global Innovators–Information Technology (2015) Company Country # Inventions State Grid Corp China China 7,479 Canon Japan 6,370 Samsung S Korea 5,792 IBM US 4,205 Ricoh Japan 3,539 Google US 3,164 Huawei China 2,799 Lenovo China 2,798 LG S Korea 2,521 Tencent Technology Shenzhen China 2,418 Source: Derwent World Patents Index Top 10 Smart-Media Innovators–Asia (2011-2015) Company Country # Inventions Samsung S Korea 1,575 Toshiba Japan 646 State Grid Corp of China China 630 Toppan Printing Japan 557 ZTE China 369 Panasonic Japan 342 Dainippon Printing Japan 332 Sony Japan 324 NEC Japan 278 Hon Hai Precision Industry Co Taiwan 274 Source: Derwent World Patents Index 82% 7% 5% 3% 2% 1%
  46. 46. 2016 State of Innovation stateofinnovation.com Information Technology 46 Top 10 Smart-Media Innovators–Europe (2011-2015) Company Country # Inventions Giesecke Devrient Germany 252 Gemalto Netherlands 204 Siemens Germany 201 NXP Netherlands 171 Nokia Finland 127 Ericsson Sweden 115 STMicroelectronics Switzerland 110 Oberthur France 109 Merck Germany 94 Infineon Germany 88 Source: Derwent World Patents Index Top 10 Smart-Media Innovators–North America (2011-2015) Company Country # Inventions Sandisk US 228 IBM US 225 Qualcomm US 225 Apple US 223 Broadcom US 185 Micron US 166 Intel US 153 Microsoft US 103 BlackBerry US 101 Google US 96 Source: Derwent World Patents Index Most Influential Scientific-Research Institutions in Computer Science (2005–2015) Institution Country # of Papers (WoS) Category Normalized Citation Impact Technical University of Czestochowa Poland 362 4.25 Wellcome Trust Sanger Institute UK 392 4.25 European Molecular Biology Lab Germany 675 3.80 Stanford University US 5,107 2.77 California Institute of Technology US 1,976 2.76 Ecole Normale Superieure, Paris France 721 2.70 Massachusetts Institute of Technology US 6,287 2.67 University of California Berkeley US 4,804 2.60 University of California Los Angeles US 3,627 2.56 University of South Wales UK 339 2.53 Source: Web of Science
  47. 47. 2016 State of Innovation stateofinnovation.com Information Technology 47 Summary Information Technology is the engine behind much of the innovation happening across many sectors. That’s why IT continues to dominate as the largest technology area covered in the State of Innovation, as has been the case since this publication’s inception, and comprises 31 percent of the overall activity volume with nearly 430,000 unique inventions just last year. The companies leading the top 10 in the global IT pack are predominantly from Asia: China, Japan and South Korea, with just two outsiders: IBM (US) and Google (US). The world’s leading three innovators are State Grid Corp of China (China), Canon (Japan) and Samsung (South Korea). Each of these leaders’ activity is significant, with thousands of unique inventions annually. Computing is by far the most active subsector, comprising 82 percent of IT’s overall activity. This includes inventions to see through walls (Vayyar), etch 3-D printed logos into almost any surface (Glowforge), charge smartphones at stations (NRG-Go) and uniquely light objects to photograph them in high detail.15 In the Smart Media subsector, Samsung is the clear frontrunner with more than twice as many unique inventions as its nearest competitor: Toshiba. Giesecke Devrient leads in Europe and Sandisk in the US, but with much less overall activity than their Asian counterparts. Academic and scientific research in computer science has a more global footprint, with Asian institutions interestingly absent from the world’s top 10 in scholarly research. Poland and the UK are home to the most impactful institutions: Technical University of Czestochowa and Wellcome Trust Sanger Institute, respectively, however the Technical University of Czestochowa has slightly fewer overall papers, making them collectively more impactful than Wellcome’s. “ Mobility is a key societal value, especially in megacities where half of the total population is concentrated. Everyone expects more connected and autonomous cars, with a simpler man to machine interface. Driving assistance features will reinforce safety and reduce CO2 emissions, through optimized ‘eco-driving,’ while improving the driving experience: this is the new concept of “Intuitive Driving” that Valeo has developed.” —Jacques Aschenbroich, CEO, Valeo 15 http://www.computerworld.com/article/3021280/ces/looking-to-the-future-5-new-ideas-from-ces-2016.html#slide1
  48. 48. 2016 State of Innovation stateofinnovation.com Information Technology 48REUTERS/SCOTT AUDETTE
  49. 49. 2016 State of Innovation stateofinnovation.com Medical Devices 49REUTERS/DMITRY NEYMYROK MEDICAL DEVICES The support infrastructure of the healthcare industry, these varied devices keep physicians and patients thriving and ticking.
  50. 50. 2016 State of Innovation stateofinnovation.com Medical Devices 50 PUMPING HARD TO KEEP US PUMPING Medical devices are essential staples in every operating and hospital room. They’re the literal sustenance of life for diabetics, dialysis patients and those who are oxygen dependent, among many others. In life-threatening situations, they are silently behind the scenes ensuring emergency technicians have the tools needed for the most successful outcome. These syringes, tubes, tanks, vials and other apparatus are the hardware of the medical and health industry, much like semiconductors are the hardware of electronic gadgets. Humans, as a whole, literally can’t live without them in the appropriate situations. It may not be much of a surprise then that the Medical Device sector is alive and healthy. In developed nations, it’s a part of daily life for many. With aging populations and growing chronic medical devices, they’re essential. For the developing world, they play an important role in the transformation to a developed economy. Medical device companies have a unique opportunity to collabovate and partner with technology and software businesses to marry their data insights with new solutions and provide valuable views to physicians and patients alike. Luckily for all of us, the sector is pulsing. “ A host of medical device companies, including frontrunner Medtronic, have filed patents and are in the process of developing an artificial pancreas, with the first system expected to be available for use by type 1 diabetics sometime in 2017. This unique closed-loop system consists of an insulin pump, a continuous glucose monitor placed under the user’s skin, and advanced control algorithm software embedded in a smartphone that intuitively signals how much insulin the pump should deliver to the patient. This system essentially takes the patient out of the diabetes management equation via the automation of the insulin regulation and injection process, which should greatly improve outcomes for these people.” —Holland Johnson Executive Editor, Medical Device Daily
  51. 51. 2016 State of Innovation stateofinnovation.com Medical Devices 51 MEDICAL DEVICES OVERVIEW % Subsectors 2015 2014 % Change 33% Diagnosis, Surgery 45,112 36,929 22% 30% Sterilizing, Syringes, Electrotherapy 41,528 31,898 30% 20% Medical Aids, Oral Administration 27,186 18,694 45% 17% Dentistry, Bandages, Prosthesis 22,490 19,250 17% Source: Derwent World Patents Index Top 10 Global Innovators–Medical Devices (2015) Company Country # Inventions Olympus Optical Japan 818 Siemens Germany 638 Toshiba Japan 627 Fourth Military Medical University China 623 Samsung S Korea 526 Terumo Japan 482 Philips Netherlands 479 Canon Japan 473 Medtronic US 362 Covidien US 358 Source: Derwent World Patents Index Top 10 Diagnosis-Surgery Innovators–Asia (2011-2015) Company Country # Inventions Olympus Optical Japan 3,246 Fujifilm Japan 2,830 Toshiba Medical Japan 2,682 Canon Japan 1,862 Samsung S Korea 1,539 Terumo Japan 1,020 Hitachi Medical Japan 913 Hoya Japan 807 Konica Minolta Japan 796 Seiko Epson Japan 693 Source: Thomson Reuters Derwent World Patents Index 33% 30% 20% 17%
  52. 52. 2016 State of Innovation stateofinnovation.com Medical Devices 52 Top 10 Diagnosis-Surgery Innovators–Europe (2011-2015) Company Country # Inventions Siemens Germany 2,850 Philips Netherlands 1,861 Warsaw Orthopedic Poland 400 Aesculap Germany 328 Smith Nephew UK 305 Zeiss Meditec Germany 281 Biosense Webster Israel Israel 264 Storz GmbH KG Karl Germany 264 Roche Diagnostics Switzerland 217 Biedermann Technologies Germany 150 Source: Derwent World Patents Index Top 10 Diagnosis-Surgery Innovators–North America (2011-2015) Company Country # Inventions Covidien US 2,353 General Electric US 1,716 Boston Scientific SciMed US 1,125 Ethicon Endo-Surgery US 1,073 Medtronic US 1,056 Depuy Synthes US 769 St Jude Medical US 417 Cook Medical Technologies US 412 Intuitive Surgical Operations US 379 Abbott Diabetes Care US 368 Nellcor Puritan Bennett US 346 Source: Derwent World Patents Index Most Prolific Scientific Research Institutions in Medical Devices (2005–2015) Name Country # of Papers (WoS) US FDA US 219 Harvard University US 190 University of Pennsylvania US 101 University of Michigan US 93 Stanford University US 90 Duke University US 88 University of Minnesota US 85 Massachusetts Institute of Technology US 80 Brigham and Women’s Hospital US 72 University of North Carolina US 71 Source: Web of Science
  53. 53. 2016 State of Innovation stateofinnovation.com Medical Devices 53 Summary Following the reported 6 percent year-over-year decline in Medical Devices from the prior period, innovation in this area got a shot in the arm to become the most active of all technology sectors covered. It had the largest year- over-year increase, 27 percent, and all of its subsectors had double-digit growth, with Medical Aids Oral Administration seeing the largest increase: 45 percent. Japan is home to 40 percent of the world’s top 10 Medical Device companies, including the world leader Olympus. China and South Korea also have their hands in this sector, with the Fourth Military Medical University and Samsung Electronics, respectively. Europe and the US also make contributions to the global top 10, with two and three innovators each, respectively. In the Diagnosis Surgery subsector, Japan has 90 percent of the top 10 innovators in Asia, demonstrating the nation’s proclivity in this field. South Korea’s Samsung is the only non-Japanese company in that top 10. Germany is the clear leader in Europe, with 60 percent of the top 10 companies, and the US takes all of the top spots for North America, with Covidien at the top followed by General Electric and Boston Scientific. Medtronic completed its acquisition of Covidien in 2015, so their innovation activity for this period was reported separately. Their combined total output is more than 3,400 inventions, however, making them the overall global leader in Diagnosis, Surgery, even over Japan’s Olympus, with 3,246 unique inventions. All of the top 10 most prolific medical device research institutions are from the US, with the FDA at the top followed by Harvard and the University of Pennsylvania. It’s interesting that despite Japan’s leadership position in innovation, it doesn’t rank in the top 10 of the most prolific scholarly research organizations globally. “ For us, innovation isn’t just about creating exciting objects that catch the imagination of our customers for one heady moment. Instead, it’s about perfecting products, services and business models that help our customers to take care of people and save lives, to live healthier and enjoy themselves, and to be part of a more sustainable world. At Philips, Innovation is at the very core of our business strategy, as well as our brand positioning and company’s mission: ‘At Philips we strive to make the world healthier and more sustainable through innovation’.” —Brian Hinman, Chief IP Officer, Philips
  54. 54. 2016 State of Innovation stateofinnovation.com Medical Devices 54REUTERS/ALY SONG
  55. 55. 2016 State of Innovation stateofinnovation.com Oil Gas 55REUTERS/WOLFGANG RATTAY OIL GAS Fossil-fuel-based products emit harmful greenhouse gases. Can we make the transition to environmentally friendly alternatives to meet governmental goals?
  56. 56. 2016 State of Innovation stateofinnovation.com Oil Gas 56 COP21 CREATES GLOBAL CHALLENGE FOR ENERGY INNOVATORS December 2015 will long be remembered as the month when the historic COP21 (Conference of Parties) took place in Paris, where nearly 200 heads of state from around the world agreed to try to slow global warming and overcome its negative effects. Innovation is imperative in order to drive alternative ways to power the planet and reduce our dependence on fossil fuels. It’s essential that we find more environmentally friendly sources of energy without harmful greenhouse gas emissions. Could Oil Gas bellwethers hold the answer? Corporate quarterly-earning conference calls convey the toll of the state of today’s industry, with plunging prices and decreasing demand. Exxon Mobil reported a 58 percent decline in its 2015 third-quarter profit over the same period a year earlier;16 Shell’s quarterly profit dropped by 70 percent;17 and Total in France announced a 69 percent decline,18 to name a few. Nevertheless, the sector continues to innovate. Some of the innovation has been related to finding new ways to extract energy from traditional sources, such as the process involved in hydraulic fracturing, or ways to mitigate carbon emissions from existing oil-extraction methods. The big question on many analysts’ minds, however, is whether or not the large Oil Gas players will be able to find sustainable solutions to the COP21 challenge, via RD investments or otherwise. “ The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt…The number of U.S. energy bankruptcies is closing in on the staggering 68 filings seen during the depths of the telecom bust of 2002 and 2003…” —Ernest Scheyder, Houston Energy Correspondent, Reuters News Terry Wade, Houston Bureau Chief, Reuters News http://www.reuters.com/article/us-usa-shale-telecoms-idUSKCN0XV07V 16 http://www.nytimes.com/2016/02/03/business/energy-environment/oil-company-earnings.html?_r=0 17 http://oilprice.com/Energy/Energy-General/Top-Oil-Companies-Report-Dismal-Earnings.html 18 Ibid
  57. 57. 2016 State of Innovation stateofinnovation.com Oil Gas 57 OIL GAS OVERVIEW % Subsectors 2015 2014 % Change 64% Exploration, Drilling, Production 18,086 15,589 16% 32% Fuels and Other Products 9,224 8,459 9% 3% Transportation and Storage 864 658 31% 1% Refining 241 183 32% Source: Derwent World Patents Index Top 10 Global Innovators–Oil Gas (2015) Company Country # Inventions Sinopec China 1,991 Petrochina China 1,982 Halliburton US 940 China National Offshore Oil China 455 Schlumberger US 378 Baker Hughes US 288 PRAD Research Development US 272 University of China Petroleum China 239 Toyota Japan 219 Tatneft Stock Russia 189 Source: Derwent World Patents Index Top 10 Petroleum Natural Gas Exploration Innovators–Asia (2011-2015) Company Country # Inventions Sinopec China 7,612 Petrochina China 7,245 China National Offshore Oil China 1,798 University of China Petroleum China 803 University of Southwest Petroleum China 675 Nippon Oil Japan 294 University of Northeast Petroleum China 251 Toyota Japan 232 Beijing Sany Heavy Machinery China 227 Daewoo Shipbuilding Marine ENG CO S Korea 195 Source: Derwent World Patents Index 64% 32% 3% 1%
  58. 58. 2016 State of Innovation stateofinnovation.com Oil Gas 58 Top 10 Petroleum Natural Gas Exploration Innovators–Europe (2011-2015) Company Country # Inventions Tatneft Stock Russia 903 Shell Oil Netherlands 666 Saudi Arabian Oil Co Saudi Arabia 468 IFP Energies Nouvelles France 371 BASF Germany 311 TOTAL SA France 198 BP UK 160 Statoil Petroleum Norway 125 Linde Germany 113 Welltec AS Denmark 113 Source: Derwent World Patents Index Top 10 Petroleum Natural Gas Exploration Innovators–North America (2011-2015) Company Country # Inventions Halliburton Energy Services US 2,848 Schlumberger Technology US 1,905 Baker Hughes US 1,452 PRAD Research Development US 1,256 Exxon Mobil US 637 UOP US 619 Chevron US 435 National Oilwell Varco US 329 Weatherford/Lamb US 308 Smith Int US 223 Source: Derwent World Patents Index Most Influential Scientific Research Institutions in Oil Gas (2005-2015) Name Country # of Papers (WoS) Category Normalized Citation Impact Imperial College London UK 119 4.57 United States Department of Energy US 102 2.89 Stanford University US 191 2.65 University of Texas Austin US 339 2.09 Delft University of Technology Netherlands 108 1.93 Norwegian University of Science Technology Norway 149 1.81 Tallinn University of Technology Estonia 170 1.72 Heriot Watt University UK 154 1.63 Texas AM University US 338 1.52 University of Oklahoma US 176 1.50 Source: Web of Science
  59. 59. 2016 State of Innovation stateofinnovation.com Oil Gas 59 Summary The sector’s innovation pace ignited beyond the prior period, jumping up 14 percent overall, with Refining and Transportation Storage seeing the largest subsector jumps of 32 and 31 percent, respectively. China leads the world’s innovation activity taking the top two spots globally. Sinopec and Petrochina rank first and second, respectively. China National Offshore Oil is fifth. The US is the next most active region with Halliburton, Schlumberger, Baker Hughes and PRAD Research Development making the top 10 list. In the subsector Exploration, Drilling Production, China again dominates, with 80 percent of the top 10 for Asia, including the same three innovators as above securing the first three positions. Japan rounds out the remaining two in the top 10 with, interestingly, Toyota as part of the mix. Europe and the Middle East feature an eclectic mix in their top 10, comprising Russia’s Tatneft Stock in the top spot, followed by eight others from Europe and one from Saudi Arabia. UK, France, Germany, the Netherlands, Norway and Denmark comprise the European contingent. Halliburton Energy Services is the leading US Oil Gas innovator for Exploration, Drilling Production, and is third globally overall in volume for this category. The Imperial College of London is the most influential scholarly research institution in the Oil Gas sector, followed by the US Department of Energy and Stanford University. Imperial’s department of Earth Science and Engineering has a Petroleum Engineering group that does significant industry-funded research, which can be found on its website: imperial.ac.uk/engineering/departments/ earth-science/research/. “ These days, global businesses and technology environments see their existing businesses and technologies being replaced at alarming speeds by new ones through the combination and convergence of diverse businesses and technologies. In the energy industry where LSIS engages, Internet of Things, big data, and innovation of manufacturing are emerging, ushering in a smart era of ICT combination and convergence and a direct-current era that can change the existing electric power paradigm.” —Ja-Kyun Koo, Chairman CEO, LSIS
  60. 60. 2016 State of Innovation stateofinnovation.com Oil Gas 60REUTERS/LUKE MACGREGOR
  61. 61. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 61 PHARMACEUTICALS Do you know who makes your medication and where it’s from? You might be surprised how much comes from Asia.
  62. 62. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 62 CHANGING DYNAMICS STEER INDUSTRY The pharmaceutical industry continues to grow thanks to its branching into creative, new markets. Proof can be seen in the seven drugs expected to launch this year that Thomson Reuters predicts will achieve blockbuster sales status of more than $1 billion in revenue by 2020, with some predicted to hit $2 billion during that period. The current pharmaceutical-success trend is a result of a concoction featuring an increased focus on rare diseases, ongoing development of more convenient Fixed Dose Combination (FDC) regimens and the continuation of the conflict between price versus access to medicines. These, alongside new treatments involving bio-organisms, several new vaccines (such as for malaria and dengue fever) and immune-therapies have given the sector a burst of adrenaline. Collabovation is a prerequisite for future pharmaceutical growth in order to meet the health and drug needs of a larger population, especially in developing nations, and to ensure the longevity of an aging demographic as well. RD models will increasingly shift to involve partnerships between pharmas and either their suppliers or partners, allowing each party to focus on its respective area of expertise. Testing of “virtual beings” is also expected to expedite development and trial cycles, bringing drugs to market faster and with more successful outcomes.19 “ The relationship between drug prices and the costs of development is expected to be a major focal point for drug companies, investors, regulators and politicians this year. With the rise of global healthcare costs, the need to demonstrate meaningful impact will be greater than ever for pharmaceutical companies. The 2016 drugs to watch are likely to figure prominently in those discussions.” —Richard Harrison, Chief Scientific Officer, Thomson Reuters Intellectual Property Science 19 http://www.pwc.com/gx/en/industries/pharmaceuticals-life-sciences/pharma-2020/pharma2020-virtual-rd-which-path-will-you-take.html
  63. 63. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 63 PHARMACEUTICALS OVERVIEW % Subsectors 2015 2014 % Change 63% Organics 88,116 85,679 3% 22% General 30,320 26,774 13% 11% Heterocyclics 15,854 16,272 -3% 3% Inorganics 3,975 1,373 190% 1% Steroids 1,036 1,075 -4% Source: Derwent World Patents Index Top 10 Global Innovators–Pharmaceuticals (2015) Company Country # Inventions Roche Switzerland 351 University of Jiangnan China 320 University of Zhejiang China 274 LG Household Healthcare S Korea 270 Foshan Saiweisi Pharma Technology China 266 University of California US 235 Sanofi France 232 University of Shanghai Jiaotong China 225 CNRS France 223 University of Guangxi China 209 Source: Derwent World Patents Index Top 10 Heterocyclics Innovators–Asia (2011-2015) Company Country # Inventions University of China Pharmaceuticals China 454 University of Nanjing China 312 Takeda Pharmaceuticals Japan 292 Shanghai Inst Pharma China 263 University of Zhejiang China 239 University of Shandong China 238 University of Fudan China 234 Foshan Saiweisi Pharma Technology China 229 Cadila Healthcare India 213 Hainan Weikang Pharma Qianshan China 212 Source: Derwent World Patents Index 63% 22% 11% 3%1%
  64. 64. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 64 Top 10 Heterocyclics Innovators–Europe (2011-2015) Company Country # Inventions Roche Switzerland 642 Novartis Switzerland 499 Bayer Germany 427 GlaxoSmithKline UK 382 Boehringer Ingelheim Germany 364 Sanofi France 349 Janssen Pharmaceuticals Belgium 244 CNRS France 188 Merck Germany 176 Astrazeneca UK 134 Source: Derwent World Patents Index Top 10 Heterocyclics Innovators–North America (2011-2015) Company Country # Inventions Merck Co. US 732 Bristol-Myers Squibb US 373 Abbvie US 361 Allergan US 282 Gilead Scientific US 228 Genentech US 200 Pfizer US 199 University of California US 195 Vertex Pharmaceuticals US 172 Teva Pharmaceuticals US US 123 Source: Derwent World Patents Index Most Influential Scientific Research Institutions in Pharmaceuticals (2005–2015) Name Country # of Papers (WoS) Category Normalized Citation Impact Tianjin University China 325 4.97 Lundbeck Corporation Denmark 529 3.59 Gilead Sciences US 478 3.34 World Health Organization EU 316 2.53 University of Newcastle UK 450 2.37 University of the Chinese Academy of Sciences China 742 2.31 Howard Hughes Medical Institute US 477 2.28 Guy’s St. Thomas’ NHS Foundation Trust UK 762 2.21 Massachusetts Institute of Technology US 953 2.17 Tsinghua University China 579 2.16 Source: Web of Science
  65. 65. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 65 Summary Pharmaceuticals experienced 4 percent year-over-year growth, with the most significant increase occurring in inorganics, which jumped up by 190 percent, from 1,373 to 3,975 unique inventions for the period. Inorganics include all non-carbon-based chemical compounds, featuring an array of metallic compounds as well as those that are synthesized in a chemical plant or lab. Globally, China is the world’s leading region for Pharmaceutical innovation with 50 percent of the top 10 pharmaceutical companies residing there: University of Jiangnan, University of Zhejiang, Foshan Saiweisi Pharma Technology, University of Shanghai Jiaotong and University of Guangxi. The collabovation between the public and private sectors is also clear in this industry, as all of China’s representatives are from academia. In the subsector for Heterocyclics, China again dominates the top ten list in Asia with 80 percent of the organizations in that area. Heterocyclics are classic compounds that have atoms of at least two different elements as part of their rings. Cadila Healthcare of India also makes the top 10 global innovator list within this area. Merck, Roche and Novartis are the world’s three most innovative organizations overall in Heterocyclic volume, surpassing even China’s leading organizations in their RD activity. Contrary to Asia, nearly all of the top 10 organizations in Heterocyclics in Europe and North America are from the private, corporate sector. The most influential top 10 scientific research organizations in pharmaceuticals have balanced representation across China, Europe and North America, with China’s Tianjin University taking the top spot. “ Innovation flourishes when you take away the fear to fail, encourage people to take controlled risks and create a healthy mix of diverse skills, cultures and experiences within your workforce. Last but certainly not least, we constantly remind ourselves that the customers in our care, the physicians, veterinarians, farmers and consumers, ultimately determine what the true innovations are.” — Dr. Marijn Dekkers, CEO, Bayer AG
  66. 66. 2016 State of Innovation stateofinnovation.com Pharmaceuticals 66 REUTERS/CHAIWAT SUBPRASOM
  67. 67. 2016 State of Innovation stateofinnovation.com Semiconductors 67 SEMICONDUCTORS The lifeline of today’s technological devices, semiconductors are the Digital Age organs that keep us connected, informed, hopping...alive.
  68. 68. 2016 State of Innovation stateofinnovation.com Semiconductors 68 ASIAN CONDUCTORS LEAD IN THE SPACE The industry for those little chips, sensors and circuits that are the hardworking internal organs of today’s electronic devices is going through a period of transformation. On the one side is massive consumer demand for gadgets to be better, faster and more intelligent. The automotive and IoT trends mentioned earlier in this paper are examples of how technology is becoming more connected and being applied in new ways. The flip side is lower manufacturer expectations for profitability and the push for more environmentally friendly solutions to power our future. Semiconductors have an important role to play, however it will take the next generation of innovation to bring them back to their heyday. Intel recently announced plans to lay off 11 percent of its workforce—up to 12,000 people.20 This comes on the tails of other publicized layoffs from bellwethers like Samsung Electronics, Marvell and others in the space. While China may be earmarked as the epicenter of Semiconductor growth for the near future, the global Semiconductor space is evolving, moving to the next stage of its lifecycle, and is ripe for creative inventors to apply them in new ways. “ Overall growth in the semiconductor space is slowing due to the slowdown in the largest segment, which includes desktop PCs (personal computers), notebooks, ultra-mobiles and tablets. The latest growth drivers, occupying smaller segments, are now the mobile sector, automotive markets, sensors, light-emitting devices and the advanced packaging industry. On the horizon, the next big growth driver is the Internet of Things (IoT), and is expected to have a significant impact on the advanced packaging. Meanwhile the Chinese government continues to invest heavily in building its own semiconductor industry with the aim to catch up technologically with the world’s leading firms by 2030. Will this one day mean cheaper electronics worldwide and major advancements in innovation as competition increases? Time and research/analysis will tell.” —Jason Foster, Senior Semiconductor Analyst, Quality Expert Content Specialist, Thomson Reuters 20 http://www.investors.com/news/technology/elephant-intel-dances-but-12000-layoffs-could-signal-recession/
  69. 69. 2016 State of Innovation stateofinnovation.com Semiconductors 69 SEMICONDUCTORS OVERVIEW % Subsectors 2015 2014 % Change 40% Semiconductor Materials and Processes 54,907 56,827 -3% 29% Memories, Film and Hybrid Circuits 40,920 35,220 16% 27% Discrete Devices 37,771 38,571 -2% 4% Integrated Circuits 5,771 5,775 0% Source: Derwent World Patents Index Top 10 Global Innovators–Semiconductors (2015) Company Country # Inventions Samsung S Korea 4,144 BOE Technology Group China 2,900 LG S Korea 2,884 Shenzen China Star Optoelectronics Tech China 1,701 Toshiba Japan 1,521 Taiwan Semiconductor Mfg Co Taiwan 1,424 Semiconductor Mfg. Int. Shanghai Corp China 1,405 IBM US 969 SK Hynix S Korea 873 Oceans King Lighting Science Technology China 872 Source: Derwent World Patents Index Top 10 Semiconductor Materials Processes Innovators–Asia (2011–2015) Company Country # Inventions Samsung S Korea 8,492 LG S Korea 5,878 Toshiba Japan 5,194 Semiconductor Mfg Int Shanghai Corp China 4,953 Taiwan Semiconductor Mfg Co Taiwan 4,836 SK Hynix S Korea 3,929 Renesas Electronics Japan 3,323 Panasonic Japan 3,163 Tokyo Electron Japan 2,998 Sharp Japan 2,462 Source: Derwent World Patents Index 40% 27% 4% 29%
  70. 70. 2016 State of Innovation stateofinnovation.com Semiconductors 70 Top 10 Semiconductor Materials Processes Innovators–Europe (2011–2015) Company Country # Inventions Infineon Technologies Germany 1,508 Osram Opto Semiconductors Germany 1,085 STMicroelectronics Switzerland 1,011 Commissariat Energie Atomique France 644 ASML Netherlands Netherlands 614 Bosch Germany 608 Merck Germany 412 Zeiss Smt Germany 391 Soitec France 285 Fraunhofer Ges Foerderung Angewandten EV Germany 280 Source: Derwent World Patents Index Top 10 Semiconductor Materials Processes Innovators–North America (2011-2015) Company Country # Inventions IBM US 5,307 Applied Materials US 1,855 Micron Technology US 1,629 GlobalFoundries US 1,057 Texas Instruments US 1,015 Intel US 881 Freescale Semiconductor US 844 Ase Group US 615 Advanced Micro Devices US 587 Intermolecular US 527 Source: Derwent World Patents Index Most Prolific Scientific Research Institutions in Semiconductors (2005–2015) Name Country # of Papers (WoS) Chinese Academy of Sciences China 7,121 Russian Academy of Sciences Russia 3,566 University of Tokyo Japan 2,092 CNRS France 1,956 Tohoku University Japan 1,700 Osaka University Japan 1,695 University of California Berkeley USA 1,684 Nanyang Technological University Singapore 1,624 National Chiao Tung University Taiwan 1,504 Tokyo Institute of Technology Japan 1,334 Source: Web of Science
  71. 71. 2016 State of Innovation stateofinnovation.com Semiconductors 71 Summary Semiconductors hit a short circuit in the period ending December 31, 2014 and showed a decline for the first time in a number of years. Nevertheless, its path has been somewhat corrected as it saw a 3 percent year-over-year increase in activity, with Memories, Films Hybrid Circuits jumping 16 percent, the most of any subsector. The largest segment: Semiconductor Materials and Processes, however, declined by 3 percent over the period. Asia continues to lead in the overall Semiconductor landscape, with Samsung Electronics taking the top position and logging over 4,000 unique inventions in just one year. LG and SK Hynix (both from South Korea) also rank in the top 10 overall. China, Japan and Taiwan all also place in the world’s top 10, with China taking four of the 10 slots, compared to just one each by Japan and Taiwan. IBM, which previously held the number one position in this sector globally, is now eighth. Samsung has 328 percent more inventions annually than IBM. Europe does not even place in the top 10. Samsung also dominates the subsector category for Semiconductor Materials Processes, with 45 percent more volume than its nearest competitor, LG. Japan fares well with 50 percent of the top innovators in this subsector. Germany is the European leader in the Semiconductor Materials Processes subsector with 60 percent of the organizations in the world’s top 10. However, even with Infineon at the top with 1,508 unique inventions over the five years, Samsung still comes out on top in terms of its output with 463 percent more activity than Infineon. Even Japan’s Sharp, ranked tenth overall in Asia, is 63 percent more active than the industry leader in Europe. IBM takes the top US spot in this sub-category with 5,307 unique inventions over the five years, but that is still 40 percent fewer than Samsung. In the scholarly research realm, Asia again leads with 70 percent of the top 10. China, Russia and Japan take the top three spots globally. The EU and the US each have one representative institution on the list of the most prolific semiconductor research organizations. Asia is the clear frontrunner in Semiconductor innovation activity. Given the volume generated from that continent, it’s evident that the region will be a force to reckon with and the companies on this list are paving the way. The question now becomes: how do these organizations morph to address the next stage of electronic and renewable needs. “ Marvell has a rich history of leadership in semiconductor innovation, and innovation remains one of the core values of our company. Innovation means many things to Marvell but at the heart of it, we continue to have a steadfast focus on advancing the global semiconductor industry with cutting-edge technologies and solutions. In collaboration with our service provider and OEM customers, we are dedicated to helping them bring new electronic systems and devices to market that ultimately improve the lives of consumers around the world.” —Dr. Zining Wu, Chief Technology Officer, Marvell Technology Group
  72. 72. 2016 State of Innovation stateofinnovation.com Semiconductors 72
  73. 73. 2016 State of Innovation stateofinnovation.com Telecommunications 73 TELECOMMUNICATIONS There’s a swirling convergence of Telecoms activity, from 5G to IoT and NFC. OMG–let’s c if u r able 2 keep up–LOL. REUTERS/DANIEL MUNOZ
  74. 74. 2016 State of Innovation stateofinnovation.com Telecommunications 74 TELECOMS TRIFECTA IS BASIS FOR WHAT’S TO COME The Telecommunications space is yet another that’s integral to the IoT phenomenon, providing the network connectivity, equipment and devices essential for it to function. Collabovation also plays a key role in the success of the sector, integrating Telecoms expertise with that of automotive, appliance, fitness, wellbeing and other categories so partners on each side of the equation can focus on what they respectively do best and leverage one another’s strengths. The rub in all this is bandwidth. It’s currently somewhat limited and in order for Telecoms to really take off, more spectrum is needed. The sector is being hit by a trifecta of sorts involving increased usage and demand for storage, decreasing rates/pricing and the lack of a far-reaching spectrum infrastructure. However, spectrum auctions and 5G-technology development are poised to change this in the not-too-distant future. The sky’s truly the limit when it comes to Telecoms, and that limit can and will be pushed as IoT becomes more pervasive, customers demand fast and better accessibility, and new technologies break old barriers. IoT, 5G, streaming services, the expansion of wearables and the shift to software-based networking solutions will shape the future of Telecoms to come. There’s ample growth opportunity and this is definitely a space to pay attention to. “ Since the dawn of telecommunications, Ericsson has put enormous time and effort into collaborating with others to set the open standards that make global communications and connections possible, with a firm belief that interoperability and enabling end-to-end performance is key to leading innovation in the information and telecom industry. To continue to advance technology, patents play an active role through standardization and licensing and with one of the strongest patent portfolios in mobile communications, Ericsson is a key driver of open innovation. Without this open innovation, many of the advances in mobile communications that we have come to rely on simply would not have been possible.” —Kasim Alfalahi, Senior Vice President Chief Intellectual Property Officer, Ericsson
  75. 75. 2016 State of Innovation stateofinnovation.com Telecommunications 75 TELECOMMUNICATIONS OVERVIEW % Subsectors 2015 2014 % Change 26% Mobile Telephony 74,493 77,477 -4% 25% Data Transmission Networks 71,623 69,614 3% 21% Telephone Subscriber Equipment 60,054 64,760 -7% 9% Digital Information Transmission 25,797 27,053 -5% 9% Telemetry Telecontrol 25,417 18,437 38% 6% Multiplex Multiple Access 15,633 16,256 -4% 2% Telephone Communications 6,855 7,003 -2% 2% Telephone Exchange Systems 5,610 5,954 -6% Source: Derwent World Patents Index Top 10 Global Innovators–Telecommunications (2015) Company Country # Inventions Samsung S Korea 4,132 Huawei China 3,496 LG S Korea 2,795 State Grid Corp China China 2,585 ZTE Corp China 1,960 Qualcomm US 1,841 Ericsson Sweden 1,424 Sony Japan 1,129 NTT Japan 1,129 Fujitsu Japan 1,087 Source: Derwent World Patents Index Top 10 Mobile Telephony Innovators–Asia (2011–2015) Company Country # Inventions Samsung S Korea 12,713 LG S Korea 8,654 Sony Japan 5,095 Sharp Japan 4,627 Panasonic Japan 4,568 Huawei China 4,131 ZTE China 3,998 NEC Japan 3,786 Kyocera Japan 3,661 Fujitsu Japan 3,209 Source: Derwent World Patents Index 26% 9% 21% 2%2% 6% 9% 25%
  76. 76. 2016 State of Innovation stateofinnovation.com Telecommunications 76 Top 10 Mobile Telephony Innovators–Europe (2011–2015) Company Country # Inventions Ericsson Sweden 3,873 Nokia Finland 2,918 Alcatel Lucent (Nokia) France 1,628 Nokia Siemens Finland 733 Sony Ericsson Sweden/Japan 651 Bosch Germany 552 STMicroelectronics Switzerland 471 Orange France 341 Vodafone UK 314 Infineon Technologies German 298 Source: Derwent World Patents Index Top 10 Mobile Telephony Innovators–North America (2011–2015) Company Country # Inventions Qualcomm US 6,534 Apple US 3,576 BlackBerry Canada 2,933 Intel US 2,825 Microsoft US 2,721 Google US 2,571 IBM US 2,083 ATT US 1,735 Broadcom US 1,590 Motorola US 1,266 Source: Derwent World Patents Index Most Impactful Research Institutions in Telecommunications (2005–2015) Name Country # of Papers (WoS) Category Normalized Citation Impact Rice University US 323 4.68 University of California Berkeley US 792 3.25 University of Texas Austin US 1,130 2.85 New York University US 432 2.77 Swiss Federal Institute of Technology Zurich Switzerland 723 2.76 Carnegie Mellon University US 762 2.70 State University of New York Stony Brook US 339 2.67 Illinois Institute of Technology US 530 2.59 Princeton University US 650 2.53 Microsoft US 700 2.35 Source: Web of Science

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