Patent Share

What Is Patent Share?

Patent share is the percentage share of a universe of patents owned or made by one subset of that universe. This term ordinarily applies to a comparative share between nations. Patent share has been partitioned across nations, however inside industry gatherings and even between companies relative to one another. Patent share is turning out to be progressively important to competitive advantage as the relevance of patents reaches out into data processes, computer software, substance equations, and different intangibles.

Grasping Patent Share

Patents grant exclusionary rights to a creation — a product or cycle that is a solution to a specific mechanical problem, or as a general rule, a better approach for following through with something. To get a patent, designers must give technical data about the development to a public agency, which then, at that point, becomes public data. Data and data about patents and patent share are distributed by the U.S. Patent and Trademark Office (USPTO) and the World Intellectual Property Organization (WIPO). They can be utilized to show innovation, track rates of mechanical change or progress, or monitor the wellbeing of research and development.

By looking at countries and industries that are developing their market shares in patent disclosures, investors can get a feeling of the wellbeing and dynamic quality of an industry or economy. For individual companies, patents and patent share inside their industry are important indicators for future value.

Companies that keep up with their inventive edge by creating and protecting patents build their competitive advantage. That drives economic results for these companies and their investors. Monitoring patents and patent share can give investors understanding into future growth trends and stock performance that probably won't be reflected in traditional financial metrics.

Patents are especially important in industries with high measures of research and development (R&D) expenditure, like technology, biotech, and drugs. Technology in food science, IT methods for management, and special machinery showed the highest annual growth rates from 2007 to 2017.

In 2020, [IBM](/enormous blue) had 9,130 patents granted to them, making it the single corporation with the biggest growth in patent share in the world that year. IBM was trailed by Samsung Electronics (6,415 patents), Canon (3,225 patents), Microsoft (2,905 patents), and Intel (2,867 patents).

The United States had a worldwide patent share of 47.6% starting around 2019. The United States Patent and Trademark Office (USPTO) monitors the percentage of new patent issues that have a place with each country on the globe, as well as the ratio of company-owned patents to those held by individuals. In 2019, around 52.4% of patents granted by the U.S. Patent and Trademark Office were recorded by foreign companies. In 2018, more than 300,000 new patents were granted in the U.S. furthermore, in excess of 14 million patents were in force worldwide.

The Guinness Book of World Records at present names Shunpei Yamazaki as having a larger number of patents than some other single person. At that point, he had been granted 11,353 patents in 10 unique countries and Europe, which was cumulative of over 40 years of developments. As of February 2021, Yamazaki holds 5,749 United States utility patents.

Highlights

• Endlessly patent share data can be utilized as indicators of innovation and competitive advantage.
• Investors can utilize bits of knowledge about patents and patent share to illuminate investment choices past the data accessible from traditional financial statements and metrics.
• Patent share is the share of patents granted or held by a company, industry, or country compared to different companies, industries, or countries.