In terms of growth rate, the average annual growth rate of patent applications by Zhongguancun enterprises hit 35.1%, nearly two-fold that of Beijing over the same period (17.9%), tallying with the high-growth economic indicators of the zone (the average annual growth rate of total revenue of Zhongguancun enterprises amounted to 31.9% over the same period).

(2) Patent applications grow rapidly, becoming an important support for patent growth for Beijing.

According to data, the growth of Zhongguancun patent applications can be divided into three phases, namely, 100, 1,000 and 10,000 patent applications per year.

The first phase, with 100 patent applications per year, spans from 1996 to 2000; the second phase, with 1,000 patent applications per year, spans from 2001 to 2007; and the third phase, with 10,000 patent applications per year, spans from 2008 to 2012.

On the basis of annual patent applications of each phase, we can find that the number of patent applications filed by Zhongguancun enterprises during the three phases accounted for 5.9%, 18.3% and 29.9% respectively of that of Beijing as a whole over the same period of time. Thus, if the volume of patent applications filed by Zhongguancun enterprises expanded from one phase into the next, the proportion would rise by 10 percentage points or more. This trend shows that Zhongguancun enterprises have witnessed accelerated growth over recent years in patent applications, becoming an important support of the patent growth in Beijing.

2. Structure of patent applications and grants

(1) Relatively excellent structure for patent applications and leading proportion of inventions across China.

Data shows that patent applications of Zhongguancun enterprises are characterized by a relatively excellent structure, with inventions taking the majority role and utility models accounting for large quantities. Judging from the types of patent applications over the years, the structure has undergone two significant changes. The first change started at the beginning of the year when they first began conducting statistics. From there on the proportion of invention patents rose year on year, starting at 22.4% in 1996 to 77.6% in 2008, where it reached its peak. During this change the proportion of utility models and designs was relatively low. The second change began after 2008, the proportion of utility models applications increased year by year from 17.9 % in 2008 to 33.4 % in 2011, while the proportion of patent applications dropped to around 60%.

According to statistics, in the Eleventh Five Year Plan period (2007-2012), the aggregate number of invention patents across China increased dramatically, but invention patent applications and grants only accounted for 33.8% and 19.9% respectively. In contrast, the patent structure of Zhongguancun was relatively better.

(2) Patent grants grow rapidly, and the growth of invention grants exceeds expectations.

After years of development, Zhongguancun patent grants had spiraled upward in the early stages and witnessed exponential growth until 2006. In terms of the three types of patent grants, the growth rate of utility model patents followed closely that of invention patents in 2006 and 2008.

It is worth mentioning that Zhongguancun enterprises had 4,992 invention patent grants in 2011, 2.72 times higher than 2008. This achievement was fulfilled four years ahead of the established goal set by the Zhongguancun National Innovation Model Zone Development Plan (2011-2020), which was to reach a level “twice that of the invention patent grants in 2008 by 2015.” The steady increase of invention patent grants and its proportion over recent years indicate further optimization of the patent structure of Zhongguancun enterprises and rapid increase of their innovation capabilities.

3. Development of groups of patent enterprises

(1) The number of patent enterprises continues to grow, and powerful enterprises active in patent filings stand out.

In 2012 the number of Zhongguancun enterprises with patent filings continued to maintain high growth, rising 16.7% to reach 2,227, accounting for 34.1% of all Zhongguancun enterprises. Among them, 41 enterprises accounted for more than 100 applications, a ranking 10 places up from 2011; 18 enterprises accounted for more than 100 patent grants, a ranking 4 places up from 2011. Also in this year, the number of enterprises with patent grants reached a record high of 2,186, an increase of 12.0% year on year. The number jumped from 10-fold to 30-fold when compared to 1996. The expanding number of enterprises with patents shows the strong vitality of innovation of Zhongguancun enterprises.

The number of Zhongguancun enterprises with patents has been expanding and powerful enterprises active in patent filings have stood out. In 2011 the first enterprises to record more than 1,000 annual patent applications came from Zhongguancun. BOE Technology Group Co., Ltd., and Beiqi Foton Motor Co., Ltd. with 1,146 and 1,070 annual patent applications respectively, became the first of their kind. In 2012 Lenovo (Beijing) Co., Ltd. (Lenovo) and Qihoo 360 Technology Co., Ltd. became new entrants, by filing 1,936 and 1,029 annual patent applications respectively. With powerful enterprises at the core, Zhongguancun enterprises which filed more than 100 patent applications in 2012 had 13,300 patent applications in total, accounting for half of the total number of patent applications filed by Zhongguancun enterprises for the year.

In terms of the total revenue of the powerful enterprises, the number of Zhongguancun enterprises with over 100 patent applications in 2012 hit 35, with each earning over RMB100 million in annual gross revenue, accounting for 85.4% of the total number of powerful Zhongguancun enterprises. The emergence of more enterprise groups with advantages in patents had become Zhongguancun’s strong base for secondmover advantage in innovation and development.

(2) A small number of enterprises have the majority of patents, and distribution of patent applications or grants follows the 80-20 rule.
From 1996 to 2012, the number of Zhongguancun enterprises with patent applications amounted to 5,781, but about 80% of the enterprises had less than 10 patent applications.

Statistics show that 4,735 enterprises had less than 10 patent applications, accounting for 74.1% of all enterprises with patent applications. The number of patent applications of these enterprises accounted for 12.1% of the total filed by Zhongguancun enterprises. Correspondingly, 12 enterprises had filed over 1,000 patent applications, accounting for 0.1% of enterprises with patent applications, but 24.3% of all patent applications by Zhongguancun enterprises.

It is also true for the distribution of patent grants by enterprises. The number of enterprises with less than 10 patent grants accounted for 81.7% of enterprises with patent grants, but only 22.3% of all patent grants.

Either in patent applications or patent grants, the distribution of enterprises generally goes in line with the 80-20 rule, with 20% of enterprises controlling 80% of patent applications.

Among them, electronics information took the leading position with 52.8% of total patent applications in Zhongguancun. Modern agriculture, aerospace, nuclear technology application each had only less than 100 annual patent applications. Ocean engineering had the least patent applications with only 39 for the past 17 years.

2. Electronics information and advanced manufacturing enjoy fastest growth in patent applications.

In terms of changes in patent applications over the years, electronics information and advanced manufacturing have witnessed the most significant increases in patent applications and the fastest spiraling growth. In 2012 the two fields reported record patent applications, showing a strong growth momentum. Biological medicine, new energy and new materials maintained steady growth continuously with an almost equal number of patent applications.

3. Electronics information takes the lead in all fields in patent grants.

In general, from 1996 to 2012, each field had patent grants at various growth rates and the distribution showed significant concentration. Electronics information took the leading position with 26,293 patents grants, accounting for 46.7% of Zhongguancun’s total, followed by advanced manufacturing (11,946, 21.2%), new materials (5168, 9.2%) and new energy (4,875, 8.7%). The combined patent grants in nuclear technology application, aerospace, marine engineering accounted for less than 2%.

Meanwhile, valid invention patents by Zhongguancun enterprises accounted for more than 60% (60.2%) of those of Beijing. Five Zhongguancun enterprises were on the top 10 list in the number of invention patents, of which Lenovo snatched the second position with 1,297 invention patents.

2. Analysis of the life of valid invention patents and distribution of technical fields

(1) The life of the average invention patent held by a Zhongguancun enterprise most commonly spans 3 to 7 years, showing striking gaps compared with patents filed by foreign applicants.

By the end of 2012, Zhongguancun enterprises had 20,212 valid invention patents in the aggregate.

Based on analyses, the life of valid invention patents held by Zhongguancun enterprises mostly runs between 3 and 7 years, the eighth year can be seen as a turning point.

In a report on valid patents released by the SIPO, valid invention patents from domestic applicants maintain a life of 3-6 years, while those of foreign applicants in China run mostly for 5-9 years. In other words, the life of valid invention patents by Zhongguancun enterprises is one year longer than that of domestic patents on average, taking the lead across China, but significantly lagging behind those held by foreign applicants in China.

This phenomenon may reflect two problems: First, patent applications by Zhongguancun enterprises began to grow rapidly around 2005. Before that, Zhongguancun enterprises had a relatively weak sense of awareness in patent filings. Second, the patent maintenance of Zhongguancun enterprises was slightly higher than the national average, but significantly lower than the international level. This reflects a lack of core patents from Zhongguancun enterprises, and the majority of patent technologies and economic value must be improved and developed.

(2) The number of valid invention patents in electronics information is more than half of that of the zone, and the average life of environmental protection and new energy patents is 4 years.

As seen in the figure showing the distribution of valid invention patents of Zhongguancun, the number of valid invention patents in electronics information is significantly higher than that of other technical fields, representing 53.7% of that of Zhongguancun enterprises in total, followed by advanced manufacturing and biological medicine representing 12.1% and 10.6% respectively. The number of valid invention patents from the six major technical fields addressed is significantly higher than that of other technical fields.

Statistically, the life of a valid invention patent in the six major technical fields is concentrated to around 3 to 7 years.

Electronics information, advanced manufacturing, biological medicine and new materials enjoy the longest life of 7 years among the six technical fields. Environmental protection and new energy have a life of only 3-5 years with the least number of valid invention patents.

Judging from the above statistics, the six major technical fields have greater and stronger technical development and innovation capacities as a whole than modern agriculture, nuclear technology application, marine engineering, aerospace and other technical fields. Among the six major technical fields, electronics information, advanced manufacturing, new materials and biological medicine have more advantages. In particular, electronics information steams far ahead in the number of valid invention patents and the length of life, fully embodying the innovation advantages of electronics information in Zhongguancun.

1. 21 out of the top 29 enterprises with aggregate patent applications are also on the top 30 list of patent grants.

According to statistics, 21 out of the top 29 enterprises with aggregate patent applications are also on the list of top 30 enterprises in patent grants. Meanwhile, 19 out of top 29 enterprises are on the list of top 30 enterprises in valid patent applications. Based on the aforesaid proportion, enterprises ranked top in patent applications also enjoy relatively good patent quality and maintenance, indicating stable positions of the top 29 enterprises as powerful enterprises.

2. The total number of patents does not have an advantage over that of domestic enterprises, with significantly lower invention reserves.

In terms of the number of patents, some powerful Zhongguancun enterprises had over 1,000 aggregate patent applications, but there was a huge gap compared with superior domestic enterprises advantageous in patents. For example, Lenovo, ranked No. 1 in the aggregate number of patents in Zhongguancun, had 6,144 patent applications and 2,817 patent grants, but still lagging exponentially behind Huawei Technologies Co., Ltd. (Huawei) and ZTE Corporation in Shenzhen High-tech Industrial Park. Huawei had 36,000 patent applications, 6 times those of Lenovo, and 20,000 patent grants, 7 times those of Lenovo.

The gap is equally significant in the area of valid invention patents. Lenovo was the only enterprise that had reported over 1,000 valid invention patents, while enterprises ranked 10th to 20th only had less than 200 valid invention patents in reserve. According to rankings of top domestic enterprises in valid invention patents by 2012 released by the SIPO, Huawei had 14,601 valid invention patents, 11.3 times those of Lenovo; while BYD Company Limited ranked 10th had 1,251 valid invention patents which ranked second in Zhongguancun.

However, Lenovo, which ranked 1st in Zhongguancun, would lose out among the top 10 rankings of valid invention patents filed by foreign right holders.

In terms of technical fields, the distribution of global PCT patent applications has undergone significant changes since 2009. Most industries have seen a decline in PCT applications, but the microstructure and nanotechnology of the chemical industry increased by 10.2%; the semiconductor sector in electrical engineering industry grew by 10.0%; thermal processes and appliances in the mechanical engineering industry rose by 7.2% and the engine segment grew by 2.9%.

Based on the above, during the period of post-financial crisis, global multinationals have been aware of technical transformation. Historical experience shows that an economic crisis is often followed by a new round of technological revolution. The growth of patent applications in these areas probably indicates that the commanding height of strategic emerging industries will come from these areas.

In contrast, PCT applications by Zhongguancun enterprises, or even domestic enterprises, still involve a relatively small scale of industries, mainly in communications and networking. The patent distribution of strategic emerging industries needs to be accelerated. Based on the above analysis, patents filings by Zhongguancun enterprises have grown by leaps and bounds and been on the right track. The number of annual patent filings have grown rapidly from 100 to 1,000 and to 10,000, and the intensity index of patents has also increased annually. The proportion of enterprises is higher than that of China on average, but there is still much room for improvement when it comes to the development positioning and goals.

(Translated by Wang Hongjun)