knowledge is global but innovation is local

Knowledge creation is spreading to more and more countries. For most of the period from 1970 to 2000 only three countries – the United States (U.S.), Japan and Germany accounted for two thirds of all patenting activity worldwide. When the remaining Western European economies are included the share reached some 90 percent. But in the years since, the rest of the world has come from almost nowhere to account for almost one third of all patenting activity. Published scientific data have spread even more widely, with the rest of the world going from less than a quarter of all such publication to around half over the last 20 years.

China and the Republic of Korea are largely responsible for the rising share of new areas in knowledge production and innovation: they account for over 20 percent of patents registered in the years 2015–2017, compared to under 3 percent in 1990–1999. Other countries, notably Australia, Canada, India and Israel, have also contributed to the global spread of innovation. Many middle-income countries, however, and all lower-income countries continue to have substantially lower levels of patenting activity.

Innovation is geographically concentrated in a limited number of areas. The emerging landscape of global hotspots and niche clusters shows that inventive and scientific activity within each country is persistently concentrated in a few large, cosmopolitan and prosperous urban areas. In the U.S., hotspots around New York, San Francisco and Boston accumulated roughly a quarter of all U.S. patents filed from 2011 to 2015. In China, those around Beijing, Shanghai and Shenzhen increased their share from 36 percent to 52 percent of all Chinese patents during the same period.

Less than 19 percent of all inventive and scientific output worldwide is generated by inventors or researchers located outside hotspots and niche clusters. Despite the big change in the global innovation picture, more than 160 countries – the vast majority – still generate little innovation activity and do not host any hotspot or niche cluster.

Source: WIPO report 2019.