The World Intellectual Property Organization WIPO reported a significant drop in global patent filings last year, marking the first decline in 14 years. The decline, attributed to economic uncertainty, is deemed concerning by experts and policymakers alike.
According to WIPO, patent filings totaled 272,600 in 2023, reflecting a 1.8% decrease compared to the previous year. This downturn is particularly notable in China and the United States, the top two countries for patent filings, which reported decreases of 0.6% and 5.3%, respectively. For China, this marks the first decline since 2002.
WIPO’s chief economist, Carsten Fink, expressed concern over the broader implications of the decline, emphasizing the role of innovation in driving economic growth and job creation. Fink highlighted the importance of nurturing a vibrant innovation ecosystem to ensure future prosperity.
While Japan and Germany, ranked third and fifth in patent filings, also experienced decreases in 2023, South Korea, ranked fourth, saw a slight increase in filings.
The Patent Cooperation Treaty, which allows inventors to seek patent protection in multiple countries simultaneously, accounts for a significant portion of global patent applications. WIPO noted that around 60% of non-resident patent applications are filed under this treaty.
The decline in patent filings underscores the need for policymakers to prioritize investment in innovation and technological progress. As innovation serves as a catalyst for future economic growth, policymakers must ensure the resilience and vitality of the innovation ecosystem to foster sustainable development.
WIPO’s findings highlight the importance of addressing economic uncertainties and creating conducive environments for innovation to thrive. As nations navigate challenges posed by the global economy, sustaining investments in research and development becomes imperative to drive progress and prosperity in the years ahead.