Technology Markets, Fact and Fiction

"The Evolution of Technology Markets: Separating Fact from Fiction" is a piece by Intan Hamdan-Livramento -- an Economic Officer, Economics and Statistics Division, WIPO -- that has just been published online in the current issue of the WIPO Magazine. You can read it in full here.

Figure 1: The potential to license out patents is far from exhausted

Share of patents licensed out as a percentage of total patents
owned by companies in selected high-income countries, 2003-2005

Based on the findings of a World Intellectual Property Report, The Changing Face of Innovation, which was published in November 2011, this article seeks to test the proposition that open innovation – where companies rely less on in-house research and development and more on external sources – is often held up as a major change in the innovation landscape. The author concludes:

"In response to these challenges, a range of new intermediaries is emerging to facilitate technology transactions. These include IP clearinghouses, exchanges, auctions and brokerages. Such new commercial entities provide a range of services including IP management support, IP trading platforms, IP portfolio building and licensing and frameworks for patent sharing, sometimes referred to as defensive patent aggregation. 

Limited analysis is available on the size and scope of the actual transactions taking place via these intermediaries. There are indications however, that activity linked to patent auctions is beginning, albeit from low initial levels. Again, more analysis is required to determine the extent to which these new collaborative intermediaries are enabling open innovation".