Patent dominance is not a birthright – we’re falling behind on core strategic technologies

China, the United States, the European Union, and Japan lead the number of patent applications filed in their home jurisdictions in 2022; however, the U.S. saw a dip in applications from 2021 to 2022.

These and similar trends are in the Invention, Knowledge Transfer, and Innovation report that the National Science Board published today. The report is part of the 2024 congressionally mandated Science and Engineering Indicators analysis of the state of the U.S. science and engineering enterprise, prepared by the U.S. National Science Foundation’s National Center for Science and Engineering Statistics under the National Science Board’s guidance.

Patent and trademark applications are key indicators for where new inventions, as well as products and processes, are emerging. Patents represent useful ideas and trademarks typically protect products and services. In 2022, the U.S. Patent and Trademark Office awarded 47% of patents (152,000) to domestic inventors while 53% went to foreign inventors. U.S. assigned trademarks grew by 12% between 2012 and 2022 and China assigned trademarks increased by more than 40 times over, from 2,810 to 120,004.

“The United States has led the world for decades in advancing the most fundamental technologies that have fueled the country’s economic growth and stability. The rise in international patents and trademarks demonstrates that U.S. innovation leadership is not a birthright,” said Dario Gil, Chair of the National Science Board’s External Engagement Committee and Senior Vice President and Director of IBM research.

“We must invest deeply in cultivating the best talent for the United States and in developing the next generation of innovators, in being the global leaders for core strategic technologies, such as artificial intelligence, semiconductors, biotech and quantum computing. And we must work collaboratively with our international partners on jointly advancing science and engineering capacity as it relates to solving our biggest challenges related to national security, healthcare, and driving overall economic prosperity,” Gil said.

Patent data also highlight innovation hubs across the U.S. For instance, U.S. patenting and trademark activities are concentrated in certain areas of the country, with the highest rates on the East Coast and West Coast, around the Great Lakes, and in parts of the Southwest.