China’s IP Development and
R&D Investment
Made in China 2025 Conference
January 15, 2019
141.9 144.4 145.6149.6
144.4 142.5
131.5136.6 138.3
149.3
128.5
27.1
35.4
44.6
60.3
74
88.9
98.3105.1
112.5116.8
124.2
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
US vs. China in Government R&D Spending
U.S. Federal R&D Spending Chinese Government R&D Spending * in billions of current USD
Is State Sponsorship of R&D Unique to China?
2
The world’s top 20 companies by their total R&D Investment in 2018
3
* Source: The 2018 EU Industrial R&D Investment Scoreboard
4
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
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2010 2011 2012 2013 2014 2015 2016 2017
R&D Spending (US$ in Billions)
Apple Cisco Ericsson Huawei Nokia Qualcomm Samsung
* Data extracted from respective annual reports of the above companies
5
3.00%
13.20%
9.70%
5.88%
2.00%
13.50%
11.60%
6.03%
2.00%
11.90%
13.50%
5.73%
3.00%
12.20%
13.20%
6.46%
3.00%
13.40%
14.20%
7.43%
3.00%
12.60%
15.10%
7.40%
5.00%
12.80%
14.60%
7.33%
5.00%
12.60%
14.90%
7.01%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
App
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Hu
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Sam
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App
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Cis
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Hu
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Cis
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Hu
aw
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Sam
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App
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Cis
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Hu
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Sam
sung
2010 2011 2012 2013 2014 2015 2016 2017
R&D Spending (Percentage to Net Sale)
Apple Cisco Huawei Samsung
* Data extracted from respective annual reports of the above companies
Who filed the most PCT patent applications in 2017?
6
* Source: World Intellectual Property Organization (WIPO)
SonyHuawei ZTE Intel Mitsubishi Qualcomm LG BOE
TechnologySamsung Sony LM Ericsson
JAPANCHINAU.S. GERMANY REPUBLIC OF KOREA
FRANCE U.K. SWITZERLAND NETHERLANDS SWEDEN
7
GPS• Initially developed by DoD by for military
purpose in the 1970s1
• Allowed for civilian applications in the
1980s 2
• Congress provided over $1.42 billion to
fund the Air Force GPS program in Fiscal
Year 2019 ($1.18 billion in 2018)3
• Personalized Assistant that Learns (PAL), funded by
DARPA4
• A cognitive computing systems to make military
decision-making more efficient and more effective5
• Siri Inc. was launched in 2007 to put the technology
to civilian use, later acquired by Apple Inc. 6
1.2. See Wikipedia. https://en.wikipedia.org/wiki/Global_Positioning_System
3. See gps.gov. https://www.gps.gov/policy/funding/2019/
4,5.6. See Personal Assistant That Learns (PAL), DARPA. https://www.darpa.mil/about-us/timeline/personalized-assistant-that-learns
8
Touchscreen
• Invented by scientists funded by
NSF and CIA/DCI7
• The inventors founded the
company FingerWorks8
• Acquired by Apple in 20059
Internet
• Started as Arpanet - an unprecedented network of
computers10
• Initially funded by DARPA11
• A decentralized communication system sought
during the cold war, to survive envisioned enemy
attack12
7.10. See The iphone at 10: how the smartphone became so smart, BBC News, https://www.bbc.com/news/business-38320198
8.9. See Wikipedia https://en.wikipedia.org/wiki/FingerWorks
11.12. See Encyclopædia Britannica, https://www.britannica.com/topic/ARPANET
DRAM Cache
DARPA
Lithium-ion
batteries
DoE
Signal Compression
Army Research Office
Liquid-crystal
Display
NIH, NSF, DoD
Micro Hard Drive
DoE/ DARPA Microprocessor
DARPA
Click-wheel
CERN
SIRI
DARPA
First Generation
iPod
(2001)
iPod Touch and
iPhone (2007)
iPad (2010)
HTTP/
HTML
CERN
Multi-touch Screen
DoE, CIA/NSF DoD
NAVSTAR-
GPS
DoD/NAVY
Cellular Technology
US Military
Internet
DARPA
What Makes an iPhone so Smart?
9* See Mariana Mazzucato, the Entrepreneurial State, Public Affairs, 116, (2013)
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