Overview Development and origin of patent applications
The number of patent applications received by the German Patent and Trade Mark Office (DPMA) in 2023 once again increased considerably, namely by 2.5%. The decline experienced in the years following the coronavirus pandemic thus seems to have been stopped. In particular, the innovation activity of German companies increased again (+3.4%). In total, 58,656 patent applications were received (applications at the DPMA and PCT applications in the national phase) (2022: 57,212). The increase shows how important protected innovations are for industry and business in times of rapid technological change.
Along with the patent applications, there was also an increase in the number of requests for examination, which are an important indicator for innovation activity. At the DPMA, applicants have seven years to file a request for examination for their patent application and thus to have the examination procedure started. Last year, 44,489 requests for examination were filed with the DPMA (+2.4%).
As opposed to the large numbers of patent applications and requests for examination, however, there was a slight decline (-6.3%) in concluded patent procedures (42,634). One reason is that, compared to the previous year, the number of withdrawals by declaration or failure to pay annual fees fell by 9.7% to 11,393, representing a proportion of 26.7% of the concluded procedures (previous year: 27.7%). In this way, during the past pandemic years, many applicants had abandoned applications they deemed dispensable, thus adjusting their portfolio.
The concluded patent procedures included a total of 22,363 published grants, i.e. a decrease of 5.2% compared to the previous year’s figure. Nonetheless, the number of patent grants, with a grant rate of 52.5% (2022: 51.8%), was still high. Granted patents make companies more attractive for investors and strengthen their competitiveness.
There were 8,878 refusals (previous year: 9,301) — a proportion of 20.8% of the concluded procedures (2022: 20.4%).
By far the largest part of the patent applications received, namely 51,213 applications, were filed directly with our office. 7,443 applications entered the national phase as PCT applications filed in accordance with the Patent Cooperation Treaty (PCT) through the World Intellectual Property Organization (WIPO) in Geneva.
In order to obtain a patent abroad, applicants must in principle file a separate application with the respective national patent office. As this would require a lot of effort and money, the Patent Cooperation Treaty provides the option to achieve the effect of a national application in all PCT contracting states by filing a single application. The PCT procedure starts with what is referred to as the international phase and subsequently transitions to what is referred to as the national phase.
The largest part by far of the applications at our office is filed electronically: The proportion of online applications was once again 90.4% of all national patent applications filed.
At the end of 2023, 148,359 national patents were in force, i.e. 4% more than in the previous year.
Fortunately, we saw a considerable increase in applications received from applicants having their residence or principal place of business in Germany. In total, these applicants filed patent applications for 38,469 inventions (+3.4%). This means that the percentage of applications from Germany slightly increased to 65.6%. With 20,187 applications, the number of applications from abroad was once again slightly higher than in the previous year (2022: 20,008).
In the year under review, the DPMA received 16,595 applications from non-European countries (2022: 16,506) and 3,592 applications from European countries (2022: 3,502).
Switzerland increased its application figures by 15.5% compared to the previous year. The number of applications from the United Kingdom (+30.9%), Belgium (+39.6%) and Ireland (+39.2%) also increased.
The number of applications from China once again increased by 32.2%. We have received a very large number of applications from China for many years now. The innovative dynamism is enormous and apparently still gains impetus, especially in the field of digital technology. The DPMA received 88.3% more applications from Singapore than in the previous year. The number of applications from Taiwan once again increased by 12.3%, too.
| Countries of origin | Applications | Percentage |
|---|---|---|
| Germany | 38,469 | 65.6 |
| United States | 6,694 | 11.4 |
| Japan | 6,402 | 10.9 |
| Republic of Korea | 1,421 | 2.4 |
| Switzerland | 997 | 1.7 |
| China | 928 | 1.6 |
| Austria | 878 | 1.5 |
| Taiwan | 558 | 1.0 |
| Sweden | 319 | 0.5 |
| France | 315 | 0.5 |
| Other | 1,675 | 2.9 |
| Total | 58,656 | 100 |
The automotive industry is still of vital importance to the innovative capacity of Germany: The ten top companies in terms of applications at the DPMA are carmakers and suppliers. In 2023, as in the previous 16 years, first place went to Robert Bosch GmbH with 4,160 patent applications, followed by Mercedes-Benz Group AG (2,046 applications) and Bayerische Motoren Werke AG (1,963 applications). With GM Global Technology Operations LLC (1,640 applications) and Ford Global Technologies LLC (1,175 applications) in fourth and sixth places, respectively, there were even two US companies among the strongest applicants.
The individual companies and institutions are shown as they appear as patent applicants — without considering whether the companies are affiliated with each other.
Depending on the residence or principal place of business, patent applications from Germany can be attributed to the individual German Länder. In the ranking of German Länder, Baden-Württemberg was in first place with 14,648 patent applications (9% more than in the previous year), having a strong lead. Bavaria once again came in second with 10,805 applications (+2.4%), ahead of North Rhine-Westphalia with 5,527 applications (+4.4%). Most carmakers are located in the three leading German Länder. If the number of applications is compared to the respective population, the ranking is slightly different. With 130 patent applications per 100,000 population, Baden-Württemberg was ahead of Bavaria (81) in this ranking too. Third place, though, went to Lower Saxony (35).
If applications are filed by companies and research institutions, a distinction is basically made between the organisation filing the application and the inventor as a natural person. In the event of independent inventors or employees with released inventions, the applicant and the inventor are usually identical persons. In 2023, the applicant and the inventor were identical in 4.1% of the applications (2022: 4.7%).
The DPMA also tracks how many patent applications can be attributed to individual applicants. In 2023, 5.1% of our applicants filed more than ten applications each (2022: 5.2%). Accordingly, 73.0% of all applications came from what are referred to as major patent applicants.
One explanation for this trend might be that, as digitisation increases and the pace of technological change gets ever faster, innovation cycles become shorter and shorter. To develop an innovation and establish it in the market, more and more capital has to be invested. This might be the reason many small and medium-sized enterprises and independent inventors stop their innovative activity.
The International Patent Classification (IPC) is used worldwide as a standard for the classification of technological contents. A number-and-letter code organises the entire field of technology in more than 70,000 units. At the DPMA, every incoming patent application is attributed to one or several IPC classes according to its technological content and forwarded to the examining section in charge at our office.
With 17,659 patent applications, we saw a particularly significant increase in the “Electricity” sector (+6.1%) in 2023. Overall, the “Mechanical engineering” sector still accounted for most applications, with 40% of all applications filed with the DPMA in 2023. But the “Electricity” sector made up much ground and accounted for 30.1% of all patent applications, finishing in second place. In 2018 the share of mechanical engineering applications was 46.1%, whereas only 23.6% of all applications were attributable to the “Electricity” sector. One reason for this development arguably lay in the fast progress in digitisation and the related technologies, e.g. artificial intelligence. An important basis for digitisation, the technology field “Semiconductors” saw a particularly considerable increase with 2,179 applications last year (+16.6%). With an increase in application numbers by 9.9% in 2023, the technology field “Electrical machinery, apparatus, energy” was another significant driving force for the development of the “Electricity” sector. The growth in battery technology applications alone, classified in subclass H01M of the International Patent Classification, was almost 20% in 2023.
If we take a look at the applicants in this field, it becomes clear that the strong innovative activity was mainly based on the fast pace of the development of electric mobility. The top companies in terms of applications were carmakers and suppliers. In addition to the traditional IPC classes for vehicle manufacturing, subclass H01M, which covers battery technology, was among the top three fields of application of all major German carmakers. Research in this respect focuses on becoming more sustainable, i.e. reducing the use of rare raw materials and lowering production costs, while achieving a high energy density in order to ensure the greatest possible range for electric vehicles.
The trend in innovation was towards electric mobility. By contrast, there was once again a significant decrease with regard to internal combustion engines: In 2023, the number of inventions received in the technology field “Engines, pumps, turbines” was 4.6% lower than in the previous year.
In this context, the foreseeable loss of importance of the internal combustion engine certainly plays a major role.
In other technology fields of mechanical engineering, too, the DPMA saw considerable decreases, e.g. in the traditionally strong “Engineering elements” field (-6.8%), which covers hydraulic or pneumatic actuators, shafts, joints and bearings and tubes and vessels for storing gases or liquids. In the strongest technology field “Transport”, however, the number of applications increased again (+2.5%). A total of 10,618 patent applications were received in this field.
In the “Instruments” sector, a considerable increase was seen mainly in the fields “Analysis of biological substances” (+15.6%) as well as “Optics” (+8.3%) and “Control or regulation” (+15.1%). By contrast, there was once again a slight decline in the “Chemistry” sector (-1.8%) and in applications in the “Building” field (-5.7%).
Patent applications in 2023
(According to WIPO IPC concordance table, available at: www.wipo.int/ipstats/en/index.html#resources.)
In 2023, the number of requests for the examination of patentability pursuant to section 44 of the Patent Act (Patentgesetz) filed with the DPMA increased by 2.4% to 44,489 in total. Within the scope of such a request, the examining sections identify the relevant state of the art by conducting a thorough and comprehensive search. On this basis, an examination is conducted as to whether the subject matter of the application is new, involves an inventive step and is industrially applicable and whether possible exclusions from patentability exist. In addition, the invention must be technical and its disclosure must allow the invention to be performed.
The examiners can then decide whether and to what extent a patent can be granted or whether the application must be refused.
However, applicants can have the patentability of their application assessed even without an examination procedure by filing a search request pursuant to section 43 of the Patent Act. The result of the search is often the basis for the decision of whether to file additional applications with other offices. In 2023, the number of search requests rose by 6.0% to 15,548. In 2023, slightly fewer searches pursuant to section 43 of the Patent Act were concluded compared to the previous year, with 14,798 search reports being sent out (2022: 14,818).
| patent procedures | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Examination requests received | 47,347 | 43,352 | 43,351 | 43,466 | 44,489 |
| - including requests filed together with applications | 26,003 | 23,392 | 22,693 | 22,681 | 23,977 |
| Search requests pursuant to section 43 Patent Act | 15,843 | 14,244 | 14,970 | 14,671 | 15,548 |
| Concluded searches pursuant to section 43 Patent Act | 14,941 | 16,451 | 15,171 | 14,818 | 14,798 |
| Examination procedures concluded | 40,188 | 41,766 | 48,508 | 45,513 | 42,634 |
| Examination procedures pending at the end of the year | 227,263 | 228,441 | 222,964 | 220,584 | 222,071 |
Parties can file an appeal against a decision — a patent granted not as requested, a refusal of the patent application or a decision in opposition proceedings. The Technical Boards of Appeal of the Federal Patent Court will then decide on such appeal. In total, there are 23 boards that consist of legally and technically qualified judges. A particular feature of the Federal Patent Court is that its judges include not only lawyers but also experts from science and engineering. The latter are referred to as technically qualified judges and participate in all proceedings that concern, among other things, the properties of a technical invention, e.g. in proceedings regarding the grant of a patent or an action for revocation of a patent.
In 2023, we once again saw a slight decrease in appeal proceedings brought before the Technical Boards of Appeal: A total of 245 appeal proceedings were received, representing a 12.5% decrease. By contrast, the number of concluded appeal proceedings (233) was almost the same as in the previous year (2022: 235). At the end of 2023, a total of 424 appeal proceedings were pending at the Federal Patent Court.
In Focus Digitisation and renewable energy sources
Digitisation
The trend of the previous years continued. In 2023, the number of patent applications from the field of digitisation increased again significantly in almost all sub-sectors. One reason for this development is certainly the rapid progress in artificial intelligence, which is used in all sub-sectors of digital technologies now. For this analysis, we took into account the applications with effect in Germany published by the DPMA and the European Patent Office (EPO). Patent applications are usually published after 18 months.
Compared to the previous year, published applications in the five selected digital technology sub-sectors — digital communication, computer technology, semiconductors, audio-visual technology and IT methods for business management — once again rose significantly by 6.2% overall. We received a particularly large number of applications from the United States (+3.5%). In addition to small and medium-sized enterprises, applicants also included large, globally operating companies.
In 2023, applications concerning digital communication considerably increased by 12.2% to 18,364 national and international patent applications in total. Accordingly, this field took first place. Many of the applications focus on wireless communications networks, the transmission of digital information or what is known as the Internet of Things (IoT). The digital communication field also includes applications relating to the current 5G technology. Virtual communication, too, still plays a major role. For example, processes can also be controlled easily from home. Cross-linked systems for intelligent process and production control (“smart factory”) have become the standard in many companies. And they have found their way into the private domain, too: To improve living comfort, many places already use technical systems for the remote control of devices such as lights or heating in the individual rooms (“smart home”).
| Country | 2022 | 2023 | Change compared |
|---|---|---|---|
| United States | 4,948 | 5,822 | +17.7 % |
| China | 4,580 | 5,231 | +14.2 % |
| Republic of Korea | 1,286 | 1,671 | +29.9 % |
| Sweden | 1,261 | 1,310 | +3.9 % |
| Japan | 1,269 | 1,167 | -8.0 % |
| Others | 3,024 | 3,164 | +4.6 % |
| Total4 | 16,367 | 18,364 | +12.2 % |
1 Applications published by the DPMA and the EPO avoiding double counts.
2 According to WIPO IPC concordance table, available here. IPC classes valid at the time of retrieval counted proportionately; without claim to completeness; results may be included that do not relate to digitisation.
3 H04L, H04N 21, H04W.
4 Due to rounding differences, the values added together deviate from the total.
In 2023, the computer technology field lost its top position to communication technology. Nonetheless, this sub-sector once again saw a marked increase (+4.9%). Of great importance in this field are, especially, systems for image data processing and generation, speech recognition and information and communication technology. In these fields, applications increasingly concerned artificial intelligence or machine learning.
| Country | 2022 | 2023 | Change compared |
|---|---|---|---|
| United States | 6,740 | 6,421 | -4.7 % |
| China | 2,290 | 2,645 | +15.5 % |
| Germany | 1,795 | 1,943 | +8.2 % |
| Japan | 1,637 | 1,699 | +3.8 % |
| Republic of Korea | 1,029 | 1,263 | +22.7 % |
| Others | 3,339 | 3,677 | +10.1 % |
| Total4 | 16,830 | 17,648 | +4.9 % |
1 Applications published by the DPMA and the EPO avoiding double counts.
2 According to WIPO IPC concordance table, available here. IPC classes valid at the time of retrieval counted proportionately; without claim to completeness; results may be included that do not relate to computer technologies.
3 G06C, G06D, G06E, G06F, G06G, G06J, G06K, G06M, G06N, G06T, G06V, G10L, G11C, G16B, G16C, G16Y, G16Z.
4 Due to rounding differences, the values added together deviate from the total.
With an increase of 8.6% compared to the previous year, the semiconductors field was third. Applications primarily focus on solid-state electrical components or assemblies of components and on semiconductor components. The use of semiconductors is crucial for facilitating the strong and broad innovative dynamism of the digitisation of all fields of application. The sharp rise in semiconductor applications from China (+47.2%) was particularly remarkable. That rise could be due to the aid the Chinese state provides to the research and development of semiconductors.
| Country | 2022 | 2023 | Change compared |
|---|---|---|---|
| United States | 1,078 | 1,272 | +18.0 % |
| Japan | 1,078 | 1,177 | +9.2 % |
| Republic of Korea | 773 | 889 | +15.0 % |
| China | 572 | 842 | +47.2 % |
| Germany | 586 | 587 | +0.2 % |
| Others | 1,388 | 1,180 | -15.0 % |
| Total4 | 5,474 | 5,946 | +8.6 % |
1 Applications published by the DPMA and the EPO avoiding double counts.
2 According to WIPO IPC concordance table, available here. IPC classes valid at the time of retrieval counted proportionately; without claim to completeness; results may be included that do not relate to digitisation.
3 H01L, H10B, H10K, H10N.
4 Due to rounding differences, the values added together deviate from the total.
With 5,744 applications, this sub-sector saw a slight decrease (-3.8%). One reason might be the end of the pandemic and the increased cancellation of schemes offering flexibility over where to work. People increasingly rely on direct and face-to-face communication again, both at work and in their private life. Consequently, the use of audio and video systems significantly decreases and the demand for innovations in this field remains static.
The audio-visual technology field includes applications concerning virtual reality (VR) and what is known as augmented reality (AR). Thanks to virtual reality, for instance, doctors can learn various surgical methods or driving lessons can be taken. With virtual reality glasses, users can immerse into a completely computer-generated world. This creates a new learning experience and improves the quality of training and professional development.
Augmented reality, by contrast, means the combination of digital and physical life. Users are shown additional virtual information about their physical environment by means of glasses or simply on a smartphone. In this context, augmented reality is not limited to visual elements, as other senses can also be stimulated. For example, intelligent audio glasses in museums can provide their wearers with relevant information. They have sensors to track the user’s position in the museum and can thus access information appropriate to that position.
| Country | 2022 | 2023 | Change compared |
|---|---|---|---|
| United States | 1,489 | 1,329 | -10.7 % |
| China | 1,163 | 1,203 | +3.4 % |
| Japan | 964 | 852 | -11.6 % |
| Republic of Korea | 668 | 706 | +5.7 % |
| Germany | 579 | 644 | +11.2 % |
| Others | 1,108 | 1,009 | -8.9 % |
| Total4 | 5,971 | 5,744 | -3.8 % |
1 Applications published by the DPMA and the EPO avoiding double counts.
2 According to WIPO IPC concordance table, available here. IPC classes valid at the time of retrieval counted proportionately; without claim to completeness; results may be included that do not relate to digitisation.
3 G09F, G09G, G11B, H04N 3, H04N 5, H04N 7, H04N 9, H04N 11, H04N 13, H04N 15, H04N 17, H04N 19, H04N 23; H04N 25, H04N 101, H04R, H04S, H05K.
4 Due to rounding differences, the values added together deviate from the total.
In this sub-sector, there was again a decrease (-4.1%) in applications to 2,497. Patent applications in this field mainly concern IT methods, e.g. for business management, industrial production (4th Industrial Revolution) or autonomous delivery systems (robots or drones). This sub-sector also includes applications concerning networked mobility such as autonomous driving. Ever larger networks of end devices, control systems and machines are established that generate very large amounts of data (big data). These data are processed and stored in a decentralised way. For this purpose, use is made of what is known as cloud computing and servers, storage media, databases and analysis options are provided on the Internet.
| Country | 2022 | 2023 | Change compared |
|---|---|---|---|
| United States | 976 | 920 | -5.7 % |
| Japan | 401 | 438 | +9.2 % |
| Germany | 332 | 324 | -2.4 % |
| China | 147 | 154 | +4.8 % |
| Republic of Korea | 119 | 99 | -16.8 % |
| Others | 630 | 562 | -10.8 % |
| Total4 | 2,605 | 2,497 | -4.1 % |
1 Applications published by the DPMA and the EPO avoiding double counts.
2 According to WIPO IPC concordance table, available here. IPC classes valid at the time of retrieval counted proportionately; without claim to completeness; results may be included that do not relate to digitisation.
3 G06Q.
4 Due to rounding differences, the values added together deviate from the total.
Renewable energies and batteries
German companies continue to work on the development of climate-friendly technologies and are very important to the German market. For this analysis, we considered the publications at the DPMA and the EPO of patent applications with effect in Germany in these fields. German companies, research institutions and independent inventors are among the top applicants when it comes to renewable energy sources and technologies that serve climate-smart mobility. Overall, there was a marked increase compared to the previous year (+18.6%).
Geothermal energy, wind and solar energy, biomass and hydropower are renewable energy sources. Innovations are intended to use these natural sources for the human energy consumption — including in order to slow down man-made climate change. For this purpose, processes taking place in nature are used for the generation of energy and renewable raw materials are used to produce electricity, heat or fuel.
As in the previous years, Germany was among the leaders in this field. With respect to solar technology, Germany and China shared first place with 117 applications each; as for wind generators, Germany, with 105 applications, was second behind Denmark (197 applications), as in the previous year.
For the first time after the considerable decrease in applications in the past ten years, the number of applications climbed again in all sectors (+18.6%). The number of applications relating to solar technology rose by 32.7% compared to the previous year, the number of applications concerning wind generators increased by 2.3%.
The increase in all sectors might be due to various proposed energy bills and federal support programmes that aim to increase the share of renewable energy sources.
With respect to wind generators, Siemens Gamesa Renewable Energy A/S led the ranking of applicants with 79 applications. As regards solar technology, the French Alternative Energies and Atomic Energy Commission led the ranking of applicants with 24 applications.
1 Applications published by the DPMA and the EPO avoiding double counts.
2 IPC classes valid at the time of retrieval counted proportionately. Without claim to completeness. Results may also include other uses.
3 B60L 53/51, C02F 1/14, E04D 13/18, F03G 6, F24J 2, F24S, G05F 1/67, H01L 31/04 to H01L 31/078, H02J 7/35, H02N 6, H02S, H10K 30/50 to H10K 30/57, H10K 39/10 to H10K 39/18.
4 B60L 53/52, F03D.
5 F03B 7, F03B 13/10 to F03B 13/26.
6 C02F 11/00, C12M 1/107, C12M 1/113, C12P 5/02, F03G 3, F03G 4, F03G 7/00 to F03G 7/08, F24J 3, F24T 10, F24T 50, F24V 40, F24V 50, F24V 99.
The strong innovative activity seen especially in the field of electric mobility results in a continuing upward trend in battery technology. The number of applications once again rose by 30.8% compared to the previous year. The strongest companies in this field were carmakers and suppliers.
In particular, the number of applications from China increased significantly compared to the previous year (+78.8%). Nonetheless, the Republic of Korea still accounted for most applications (1,638) in this field. Second place went to China (1,313), ahead of Germany, which again came in third with 1,091 applications. In this field, innovations focus on sustainable and environmentally friendly batteries that can be produced at low cost and have a great energy efficiency and a great capacity.
Briefly explained — The International Patent Classification (IPC) The whole world of technology in a classification system
Domestic appliances, chemical processes, applications of artificial intelligence: Patent applications come from all fields of science and technology. In order to ensure their consistent and comprehensible classification and processing, there is a consistent International Patent Classification (IPC). It continuously develops as the world of technology does.
An instrument for the internationally consistent classification of patent documents, the International Patent Classification (IPC) is used by more than 100 patent offices worldwide.
It is the basis for a language-independent systematic search for the state of the art and the allocation of patent applications to technically competent examining sections. It allows patent information to be selectively disseminated to all users and is the basis for the preparation of statistics on IP rights and the assessment of technological innovations and the detection of trends.
Strasbourg Agreement
The Strasbourg Agreement Concerning the International Patent Classification, which entered into force on 7 October 1975, provides the basis for the IPC. In accordance with Article 1 of the Agreement, the IPC Union was established, which has so far been joined by 65 countries. The international (previously European) classification of patents for invention effective from 24 March 1971, which was published on 1 September 1968, is considered the first edition of the IPC.
Structure of the IPC
The IPC is a hierarchical classification system that divides the whole body of technological knowledge proper to the area to which the patents for invention pertain into eight sections. These sections are the highest level of hierarchy of the classification. The subjacent levels of hierarchy are, in descending order, classes, subclasses, main groups and subgroups. The contents of the lower hierarchical levels are subdivisions of the contents of the higher hierarchical levels and subordinated to them. The hierarchy among subgroups is determined solely by the number of dots preceding their titles and not by the numbering of the subgroups. According to the IPC, patents and utility models can currently be classified into approximately 78,000 main groups or subgroups.
IPC revisions
The IPC Union continuously updates the IPC in order to include the latest developments of science and technology in the classification. The changes are published every year with a new version indicator and reflected in the IPC concordance table. The version indicator at the end of a title indicates the version of the classification in which the relevant entry has been changed, e.g. [2023.01].
Use of the IPC
Published patent documents have the corresponding IPC symbols. The IPC can thus be used for patent monitoring and various types of searches in databases, such as prior art search, patentability search or novelty search.
The World Intellectual Property Organization provides the mandatory publication of the IPC on its IPC pages. These pages contain the full text of the current edition or version and of the earlier editions or versions of the classification in English and French. The IPC in German is prepared by the DPMA in consultation with the Austrian Patent Office and the Swiss Federal Institute of Intellectual Property. The German text, along with the English and French texts and the earlier editions/versions, is available to the public in DEPATISnet.
Further information on the International Patent Classification is available on our website.
Interview “The DPMA is a central pillar of the innovation system”
Germany is one of the most innovative countries in the world — but for how much longer? Uwe Cantner, Chairman of the Federal Government's Commission of Experts for Research and Innovation, on the necessary transformation towards future technologies, successful policy advice and the importance of IP rights for the economy
Professor Uwe Cantner has been a member of the Commission of Experts for Research and Innovation (EFI) appointed by the German government since December 2015 and took over the chairmanship of the commission in spring 2019. He holds the Chair of Economics/Microeconomics at Friedrich Schiller University Jena, where he is also Vice President for Young Researchers and Diversity Management. Professor Cantner is also Professor of Economics at the University of Southern Denmark/Odense.
He studied at the Universities of Augsburg and Detroit, completed his doctorate at LMU Munich and habilitated at the University of Augsburg.
He teaches as a visiting professor at universities in Italy and France and is active in national and European economic institutions as an advisor and consultant.
Professor Cantner, you could be described as the chief caretaker of the German innovation system. What can you tell us about the balance and performance of the system?
Our innovation system has developed well over the last 20 years, and Germany is certainly one of the best innovation centres in the world. Germany has been able to rely on its traditional strengths, such as car manufacturing, mechanical engineering and chemicals. However, the world has changed in the meantime and completely new key technologies are coming to the fore, although these are not being driven to any great extent by Germany or Europe. Artificial intelligence, biotechnology, but also new materials; in all of these areas, other countries are already further ahead and also in the lead. This means that we in Germany now urgently need to shift innovation activities to these new fields of technology and make a change of direction.
Are we ready for this change of direction?
It doesn't seem to be easy for us in Germany. Not only do we have to change the fields of innovation and production structures, we also have to change the available knowledge and expertise and mentally refocus ourselves. In Germany, we actually have everything we need to remain a successful centre of innovation in the future — the basic requirements are good, we “simply” have to embrace new paths, i.e. technologies.
Where do you see the strengths and weaknesses in the German innovation system?
Our strength is perfection. Once we Germans have arrived at a technology, we can develop it to the point of perfection. Be it in automotive engineering, mechanical engineering or optics, once we have got to grips with the technology, we are generally world leaders. However, we find it difficult to rethink — because it has worked well so far. Why should I change my innovation activities and technology if my order books are full? The urge to fundamentally reorient ourselves has simply not been there until now. However, this is increasingly changing.
The EFI advises the Federal Government on topics such as research, innovation and Germany's techological performance. How do you see your mission?
We are an independent commission and regularly analyse the strengths and weaknesses of the German research and innovation system. We define the weaknesses and make recommendations to the Federal Government on how these weaknesses could be remedied by policy. We also evaluate the Federal Government's research and innovation policy with regard to the selection and effectiveness of the measures implemented.
What does this look like in practice? How does the EFI work?
The Commission of the EFI consists of a team of six experts: three female university professors and three male university professors from the field of economics. In addition, there is an office with academic staff and an administration department, as well as academic staff at our six chairs. In addition to a large number of online meetings, there are seven meetings a year, each lasting three days, at which the research results and texts are discussed, from which the expert report is then ultimately produced. Our work is essentially evidence-based and we have extensive scientific studies carried out for which we are provided with appropriate funding.
Six university professors who all agree immediately?
When six professors sit around a table, you can be sure that you also have six opinions. But thanks to a constructive culture of discussion and our consensus principle, everyone can always support the result in the end.
You then present your report to the Federal Government once a year. To what extent do politicians take your recommendations to heart?
In my opinion, the track record is quite respectable. Many recommendations for action are being implemented. And very successfully, such as the research allowance, the establishment of the Federal Agency for Disruptive Innovation or the mission-orientation of research and innovation policy.
However, there are also topics and recommendations that receive far less attention — if any at all — or that are only implemented very slowly, such as the digitisation of administration. We never assume a one-to-one implementation anyway. Our recommendations are based on a conceptual and scientific approach. However, they must then be weighed up by politicians and made capable of gaining majority support. Of course, some things also depend on the overall political situation.
What significance do IP rights have in the innovation system?
IP rights are a very important legal institution. However, their importance depends somewhat on the sector. Empirical studies show that the pharmaceutical industry utilises IP rights more intensively than the mechanical engineering sector.
There is no doubt, however, that the securitised right to IP is a very important asset for a company to trade and do business with. This is because the returns on high investments in research and development need to be secured.
And what role do you see for the DPMA in this system?
The DPMA guarantees that new technological ideas are assessed systematically, uniformly and legally correctly. The office fulfils this task very effectively. However, we could well imagine the DPMA taking on other tasks as well: for example, it could enter the technology markets even further and create forums so that inventors and companies that want to licence and market inventions can come together more effectively. We have not got that far yet, but it is something we should aim to do. With its current tasks, the DPMA is in any case a central pillar of the German research and innovation system. Without the DPMA, the system would not be as good as it is today!
In your most recent report, you made two recommendations directly related to IP utilisation. One recommendation concerns the transfer of IP rights, which should be made easier for university spin-offs. Why is this so important?
In order for an idea that has been developed at a research institution and patented by it to be used commercially, it is often sold to a company, in many cases to start-ups. A fair and appropriate price must be determined for the value of the intellectual property. However, if the development of the idea was financed by taxpayers' money, the question arises as to why a (high) price still has to be charged for passing on the patent. European state aid law does not allow such a patent to be given away, so to speak. A price must be set, and it must not be a marginal price, it must be a certain amount. The associated expenses for acquiring a patent are often too high for start-ups with limited financial resources and can virtually strangle the company in its initial phase.
What is your proposal?
Our idea would be for the intellectual property to be valued accordingly, but for the research organisation to place the patent in the company as a virtual shareholding and initially waive all returns from the company. Only when the commercialisation of the idea becomes profitable should returns also be made to the research institution holding the patent. This gives the company greater financial leeway during the difficult start-up phase and can make a significant contribution to successful commercialisation.
Your second recommendation relates to the use of Standard Essential Patents (SEPs)? Why should anything change here?
SEPs are patents that are crucial for new technology developments. Anyone who does not have them and is not allowed to use them is left out in the cold. The possibility of utilising such important patents should therefore be provided despite the existing patent protection. There should be clear regulations for these utilisation options, such as the obligation of patent holders to grant licences under fair conditions. This could also reduce the number of disputes in court and bring about quick consensus solutions in arbitration proceedings. Patent disputes can sometimes drag on for years and would therefore block the development of technology. This must not be allowed to happen. We therefore support the EU's proposal to formulate voluntary guidelines for SEP licensing and the introduction of an arbitration procedure before legal disputes are initiated. The Commission of Experts is also in favour of setting up an SEP register and introducing an assessment procedure to check whether a patent is actually necessary for the use of a particular standard.
50 years ago European Patent Convention — A vision turns into reality
On 5 October 1973, the signing of the European Patent Convention in Munich made reality of a vision pursued in Europe since the end of the 19th century: the adoption of a European legislation on the protection of innovations. Since the establishment of the European Patent Organisation, a lot has happened and the vision has turned into active European collaboration. In addition to the national IP systems, the European Patent Organisation has become established as an important stakeholder in the IP landscape — and has faced new challenges since last year.
The European Patent Convention (EPC) laid the foundations for a patent system that considerably eased the path to patent protection in Europe. Instead of filing an application for an invention in several countries and having to follow the respective national grant procedure, applicants can obtain a bundle of patents by filing a single patent application with the European Patent Office (EPO), thanks to a uniform grant procedure. After being granted, the European patent has the same effect in every EPC contracting state for which it has been granted and is governed by the same provisions as a national patent granted in that state, thus extending the strategic options of applicants.
Since it started its activities in 1977, the European Patent Organisation (EPOrg) has grown to become a globally recognised international organisation with now 39 member states that aim to offer patent protection for inventions in all fields of technology in all contracting states. “The signing of the European Patent Convention 50 years ago was an important tent pole. Today, we can say that it was the beginning of a real success story,” DPMA President Eva Schewior says. “The European Patent Organisation,” she adds, “has become established alongside the national IP systems and has become an important stakeholder in the international IP ecosystem.”
Over the years, their close collaboration under the EPC has made the contracting states continuously grow together. The collaboration between the EPO and the national patent offices, too, is an important contribution to efficiently supporting and informing the users of both systems as well as a strong commitment to patent protection in Europe. The combination of national and European protection options allows users to choose from a varied offer of high-quality patent protection services, according to their individual needs.
Introduction of the Unitary Patent system as of 1 June 2023
The EPC has substantially pushed the protection of intellectual property in Europe and makes an important contribution to the dialogue and friendship among the contracting states. At the 50th anniversary of this European collaboration, the achievements are underscored by another historic milestone: the introduction of the European patent with unitary effect.
Since 1 June 2023, applicants have been able to use what is referred to as the Unitary Patent as another protection option for their inventions alongside the national patent and the European patent. The Unitary Patent provides, upon request, a patent proprietor with uniform protection in all EU member states that have ratified the Agreement on a Unified Patent Court (UPCA), including Germany.
In the past 50 years, there have been historic changes to national and international patent laws — let us see what the next 50 years will bring for patent law.
Further information on the European Unitary Patent is available on our website.