LexisNexis Innovation Momentum Embed 2024
Innovation Momentum 2024: The Global Top 100 Intellectual Property Report
Innova琀椀on Momentum 2024: The Global Top 100 Foreword In the dynamic landscape of modern business, intellectual property (IP) stands as a linchpin, weaving innovation and strategy into the fabric of organizational success. The traditional IP department, once confined to legalities and protection, now extends far beyond safeguarding innovations, actively shaping the trajectory of business endeavors. “Innovation Momentum 2024: The Global Top 100,” in its third annual edition, offers a unique perspective on innovation by analyzing patent data to identify organizations that have demonstrated exceptional momentum in the past two years. Unlike other reports that focus solely on patent volume, the LexisNexis approach evaluates patents based on their strength, providing valuable insights into the innovation landscape and emphasizing the importance of quality-driven portfolio strategies in today’s competitive market. Our analysis of the Top 100 reveals intriguing trends and collaborations among key players, offering a glimpse into the innovations driving various industries forward. This year’s list prominently features companies at the forefront of artificial intelligence (AI) development, a topic of considerable interest and debate within the IP community, particularly regarding AI’s potential role as an inventor. Additionally, we explore the implications of recent mergers and acquisitions (M&A) activities involving select list members, shedding light on evolving industry dynamics. Noteworthy additions to this year’s Top 100 include industry giants like Tesla and IBM, representing diverse sectors ranging from electric transportation to advanced computing. Their inclusion underscores a strategic shift toward quality-driven portfolio management. In an era where information is currency, IP is the essence of progress and there is urgency for IP players to bolster themselves with insightful data and measured foresight. Not only does this report shed light on the top innovators, but it can also serve as a guide, underscoring the need for intellectual property practitioners to be well-equipped for strategic conversations that extend into the boardroom. Marco Richter Global Head of Customer Success LexisNexis® Intellectual Property Solutions In an era where information is currency, intellectual property is the essence of progress. LexisNexisIP.com 2
Innova琀椀on Momentum 2024: The Global Top 100 Executive Summary The “Innovation Momentum 2024: The Global Top 100” report employs a unique methodology, utilizing patent data to assess innovation dynamics, differentiating between small, high-quality portfolios and well-maintained large portfolios. Key Insights New Entrants: The report introduces 20 new entrants to the list, including notable newcomers like German company ZEISS, provider of virtual reality (VR) glasses for the new Apple Vision Pro™, and Japan-headquartered Daikin, which has put an emphasis on sustainability in their Heating, Ventilation, Air Conditioning & Refrigeration (HVAC&R) innovations. Strategic Significance of Intellectual Property: The report acknowledges the strategic significance of intellectual property, exemplified by companies like IBM, which has transitioned to a value-driven approach in managing its patent portfolio. Qualitative Patent Strategies: Key companies such as CATL, Tempus Labs, and STMicroelectronics are identified for their innovative patent strategies, showcasing their unique approaches. AI Innovation Landscape: The report touches on the AI innovation landscape, showcasing companies like Nvidia and Juniper at the forefront of AI development. Global Distribution of Innovators: The report sheds light on the global distribution of innovators, with the U.S. excelling in Pharmaceuticals and Information Technology, while Asia dominates in Electronics and Semiconductors. Advancements in Autonomous Driving: Companies like Aptiv and Tesla are highlighted for their focused efforts in autonomous driving and autonomous vehicle technologies. Role of Smaller Portfolios: Companies like Mirati Therapeutics and Splunk are recognized for their agility and niche expertise, which made them attractive M&A targets for Bristol-Meyers Squibb and Cisco, respectively. Academic Focus Areas: Academia's focus on health care and chemistry is highlighted, with significant patent holdings in these areas by organizations like Broad Institute and Mass General Brigham, along with the rising importance of data analytics and AI in academic (IT) research. LexisNexisIP.com 3
IInnonnovvaa琀椀on Mtion Momenomentum 2024: tum 2024: TThe Ghe Global lobal TTop 100op 100 Contents Foreword 2 Executive Summary 3 Key Insights 3 How to Measure Innovation Momentum 5 The 2024 Global Top 100 6 Redefining Patent Strategies: Insights From the Top 100 11 The Industries of the 2024 Top 100 Companies 13 Innovation in the World’s Regions 15 Assessing Potential: Valuation and Patent Data 17 Academics and Public Research 19 Closing Summary 21 Appendix About the Authors 22 About the Patent Asset Index 23 ® About LexisNexis PatentSight+™ 24 ® About LexisNexis Intellectual Property Solutions 24 LLeexisxisNNeexisxisIPIP.c.comom 44
Innova琀椀on Momentum 2024: The Global Top 100 How to Measure Innovation Momentum The methodology of the Innovation Momentum report stands at the forefront of examining technology development dynamics. Uniquely attuned to recognize patent owners regardless of their portfolio size, the methodology differentiates between small, high-quality portfolios and well-maintained large portfolios. It comprehensively evaluates advancements across diverse technology fields, accounting for the innovators’ target markets. Rooted in the 1 industry-trusted Patent Asset Index, a scientifically rigorous indicator of patent portfolio strength, the methodology provides an impartial means of identifying innovators who have excelled in the past two years. The evaluation hinges on the average Technology Relevance of patent portfolios, showcasing their potential to drive further inventions. For smaller portfolios, significant increases are required, while large portfolios must either expand in size while maintaining or increasing average patent quality or enhance quality while reducing portfolio size. The assessment also considers the average Market Coverage, reflecting the number of markets in which a patent family is protected. The unification of these indicators yields the average Competitive Impact, representing the average quality of an entire patent portfolio. In Figure 1, a bubble chart visualizes the quality (y-axis) and quantity (x-axis) of patent portfolios. Each bubble, representing one of the Top 100 patent owners, indicates portfolio strength measured by the Patent Asset Index. ) Source: LexisNexis® PatentSight+™ ale100 y c garithmic S10 o mpact (L e I 1 titiv ompe x C 10 100 1000 10000 100000 Portfolio Size (Logarithmic Scale) Figure 1: Average patent quality (Competitive Impact) versus Portfolio Size of patent owners in the Top 100. The bubble size of the patent owners represents the portfolio strength (Patent Asset Index). When it comes to innovation impact, there’s typically an interesting trend: bigger players have a lower Competitive Impact, while smaller players tend to show a higher Competitive Impact. This highlights a key point: for larger companies, it takes a lot of highly innovative patents to make a significant impact across their whole portfolio. On the other hand, smaller players can make a substantial impact with fewer, exceptionally innovative patents. It's all about the balance between innovation quality and quantity and understanding how different companies navigate this landscape. 1 Ernst, H., Omland, N. (2011): The Patent Asset Index - A New Approach to Benchmark Patent Portfolios. World Patent Information 33, pp. 34–41. LexisNexisIP.com 5
Innova琀椀on Momentum 2024: The Global Top 100 The 2024 Global Top 100 The Top 100 in alphabetical order, the headquarter location and its industry sector. Patent Owner HQ Industry *New to the Top 100 † Re-entered the Top 100 10x Genomics US Biotechnologies Acuitas Therapeutics A private biotechnology company Acuitas Therapeutics† CA Pharmaceuticals based in Canada specializing in the development of delivery systems for AGC JP Chemicals and Materials nucleic acid therapeutics based on lipid nanoparticles. Align Technology US Medical Technologies Aptiv An Irish American automotive Alphabet US Information Technologies technology supplier that develops safer, greener and more connected Amazon US Information Technologies solutions enabling a more sustainable future of mobility. Amgen US Pharmaceuticals ASUSTeK A Taiwanese multinational company Apple US Electronics known for motherboards and high- quality personal computers, monitors, Applied Materials US Semiconductors graphics cards, routers and other technology solutions. Aptiv* IE Automotive BioNTech A Germany-based biotechnology ARAMCO SA Chemicals and Materials immunotherapy company pioneering novel therapies for cancer and other ASM NL Semiconductors diseases. ASML NL Semiconductors ASUSTeK* TW Electronics Aurora Innovation US Automotive AutoStore NO Information Technologies BASF DE Chemicals and Materials Becton, Dickinson US Medical Technologies BioNTech* DE Pharmaceuticals Boeing US Engineering US: United States, CA: Canada, JP: Japan, IE: Ireland, SA: Saudi Arabia, NL: Netherlands, TW: Taiwan, NO: Norway, DE: Germany LexisNexisIP.com 6
Innova琀椀on Momentum 2024: The Global Top 100 The 2024 Global Top 100 The Top 100 in alphabetical order, the headquarter location and its industry sector. Patent Owner HQ Industry *New to the Top 100 † Re-entered the Top 100 Bristol-Myers Squibb US Pharmaceuticals Daikin A Japan–based company focusing on British American Tobacco GB Consumer Goods HVAC&R, fluorochemicals and filters to advance the health and comfort of CATL CN Chemicals and Materials people and spaces. CJ Corporation KR Consumer Goods Hai Robotics A Chinese company that develops Autonomous Case-handling Robot Comcast US Information Technologies (ACR) Systems and provides warehouse automation solutions CureVac DE Pharmaceuticals through robotics technology and AI algorithms. Daikin* JP Appliances IBM A U.S. technology company that Deere & Co US Engineering specializes in producing and selling computer hardware, middleware and DSM-Firmenich CH Chemicals and Materials software. Edwards Lifesciences US Medical Technologies Eli Lilly US Pharmaceuticals Ericsson SE Information Technologies Gilead Sciences US Pharmaceuticals Hai Robotics* CN Engineering Huawei CN Information Technologies Hyundai Motor KR Automotive IBM* US Information Technologies Illumina US Biotechnologies Incyte US Pharmaceuticals Infineon DE Semiconductors US: United States, GB: Great Britain, CN: China, KR: South Korea, DE: Germany, JP: Japan, CH: Switzerland, SE: Sweden LexisNexisIP.com 7
Innova琀椀on Momentum 2024: The Global Top 100 The 2024 Global Top 100 The Top 100 in alphabetical order, the headquarter location and its industry sector. Patent Owner HQ Industry *New to the Top 100 † Re-entered the Top 100 Intel US Semiconductors Intellia Therapeutics A U.S.–headquartered company that Intellia Therapeutics* US Pharmaceuticals focuses on pursuing the development of novel, potentially curative InterDigital US Technology R&D therapeutics utilizing CRISPR-Cas9–based technologies. Intuitive Surgical US Medical Technologies Jiangsu Hengrui Pharmaceuticals A China–based pharmaceutical Japan Tobacco JP Consumer Goods company engaged in the development and commercialization of innovative CN Pharmaceuticals and high-quality drugs, including oncology and surgical drugs, as well Johnson & Johnson US Pharmaceuticals as interventional imaging solutions in China. Juniper Networks* US Information Technologies Juniper Networks A U.S.–based networking and Kia KR Automotive cybersecurity solutions company focused on AI networking, cloud and connected security solutions. KLA† US Semiconductors KLA Korea Tobacco & Ginseng KR Consumer Goods A U.S.–based company that develops and manufactures equipment and Lam Research US Semiconductors services for process control using advanced inspection tools, metrology systems and computational analytics. LG Chem KR Chemicals and Materials Lumus LG Electronics KR Electronics An Israeli company that creates transparent displays for smart eyewear Lumus* IL Electronics and head-mounted displays that transform the way people interact with reality. Macronix TW Semiconductors Magic Leap US Electronics Masimo US Medical Technologies MediaTek TW Semiconductors Medtronic IE Medical Technologies US: United States, JP: Japan, CN: China, KR: South Korea, IL: Israel, TW: Taiwan, IE: Ireland LexisNexisIP.com 8
Innova琀椀on Momentum 2024: The Global Top 100 The 2024 Global Top 100 The Top 100 in alphabetical order, the headquarter location and its industry sector. Patent Owner HQ Industry *New to the Top 100 † Re-entered the Top 100 Meta US Information Technologies Mirati Therapeutics A U.S. biotechnology company Mirati Therapeutics* US Pharmaceuticals that designs and delivers therapies focused on lung cancer and Moderna Therapeutics US Pharmaceuticals therapeutics targeting the genetic and immunological drivers of cancer. Murata Manufacturing JP Electronics OMV An Austria-headquartered company Nike US Consumer Goods that provides advanced and circular polyolefin solutions, including base Novartis CH Pharmaceuticals chemicals, fertilizers and plastics recycling. Nvidia US Semiconductors Pure Storage A U.S.–based technology company Ocado GB Information Technologies that provides enterprise-grade, all-flash block, file and object storage. Ofinno US Technology R&D Rockwell Automation A U.S.–based provider of industrial † OMV AT Chemicals and Materials automation and digital transformation technologies. Brands include Allen- Procter & Gamble US Consumer Goods Bradley, FactoryTalk software and Lifecycle IQ Services. Pfizer US Pharmaceuticals Saint-Gobain A French company that designs, Philip Morris US Consumer Goods manufactures and distributes materials and services for the construction and Pure Storage* US Electronics industrial markets. Qualcomm US Semiconductors Regeneron US Pharmaceuticals ResMed US Medical Technologies Revolution Medicines US Pharmaceuticals Rockwell Automation* US Engineering Saint-Gobain* FR Chemicals and Materials US: United States, JP: Japan, CH: Switzerland, GB: Great Britain, AT: Austria, FR: France LexisNexisIP.com 9
Innova琀椀on Momentum 2024: The Global Top 100 The 2024 Global Top 100 The Top 100 in alphabetical order, the headquarter location and its industry sector. Patent Owner HQ Industry *New to the Top 100 † Re-entered the Top 100 Salesforce US Information Technologies Smoore A Chinese company focused on Samsung KR Electronics atomization technology solutions, including medical, pharmaceutical, and Samsung SDI KR Chemicals and Materials beauty atomization technologies. Sanofi FR Pharmaceuticals STMicroelectronics A Swiss technology company creating semiconductor technologies. Smoore* CN Consumer Goods Tempus Labs Snap US Information Technologies A U.S.–based company building tech solutions oriented around clinical care Splunk US Information Technologies and research products, bringing data and AI to health care. STMicroelectronics* CH Semiconductors Tesla A U.S.–based automotive and energy Stryker US Medical Technologies company that designs, develops, manufactures, sells, and leases electric vehicles, energy generation, and Techtronic HK Appliances storage systems. Tempus Labs* US Pharmaceuticals TRUMPF A German company that provides Tencent CN Information Technologies manufacturing solutions in the fields of machine tools, laser technology, electronics and industry. Tesla* US Automotive Vertex Pharma Tokyo Electron JP Semiconductors A U.S.–based company that invests in scientific innovation to create transformative medicines for people † TRUMPF DE Engineering with serious diseases. TSMC TW Semiconductors ZEISS A German technology enterprise Välinge Innovation SE Chemicals and Materials operating in the optics and optoelectronics industries with segments in semiconductor Vertex Pharma* US Pharmaceuticals manufacturing technology and more. CN Chemicals and Materials ZEISS* DE Semiconductors US: United States, KR: South Korea, FR: France, CN: China, CH: Switzerland, HK: Hong Kong, JP: Japan, DE: Germany, TW: Taiwan, SE: Sweden LexisNexisIP.com 10
Innova琀椀on Momentum 2024: The Global Top 100 Redefining Patent Strategies: Insights From Top 100 Measuring innovation momentum prompts the question: what patent management strategies propel companies into the Top 100? Innovation Momentum builds on the difference between expected and real developments within a patent portfolio, reflecting changes in size and Technology Relevance. Considering the Portfolio Size, portfolios can be divided into mature larger portfolios, evolving midsize portfolios and dynamic small portfolios. ® Source: LexisNexis PatentSight+™ 2.50 y 2.25 Tempus Labs 2.00 tio a e R 1.75 anc v ele R 1.50 gy echnolo1.25 T CATL 1.00 STMicroelectronics 0.75 x 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 Portfolio Size Ratio Figure 2: The changes in Portfolio Size and Technology Relevance of the Top 100 companies over the past two years. Figure 2 illustrates the changes in Portfolio Size and Technology Relevance of the Top 100 companies. The x-axis represents the ratio of current Portfolio Size to that of two years ago, with a ratio of 1 indicating no change and more than 1 representing that it grew. The y-axis shows the ratio of Technology Relevance, with values above 1 indicating increased relevance. Bubble size denotes current Portfolio Size. LexisNexisIP.com 11
Innova琀椀on Momentum 2024: The Global Top 100 Most Top 100 companies exhibit growth in both Portfolio Size and Technology Relevance. Most large portfolios with tens of thousands of patents have ratios close to one because it would require significant changes to move entire portfolios. However, these companies are placed among the Top 100 because they beat the general trend of decreasing Technology Relevance with increasing Portfolio Size. For example, CATL, a prominent Chinese battery manufacturer with a midsize to large- size portfolio, has increased its Portfolio Size by 2.5 times to more than 6,000 patents today and simultaneously was able to elevate its Technology Relevance. This strategic increase is in line with the surge in innovation in electric vehicles (EVs) and large-scale energy storage systems. CATL’s approach illustrates how a deliberate augmentation in relevant patents can propel a company to the forefront of innovation. Tempus Labs, on the other hand, operates within the niche of AI–driven medical diagnostics, and while it has a comparatively smaller portfolio of approximately 100 active patent families, its rise in Technology Relevance of almost 2.5 times reflects its advancements in medical data processing and solidifies their presence in the 2024 Top 100. The management of mid and large portfolios includes balancing a company’s IP protection and the associated costs without deteriorating a portfolio’s strength and value. STMicroelectronics, a European integrated semiconductor device manufacturer, among a few others has adopted this different yet equally effective strategy. By maintaining a consistent Portfolio Size and strategically divesting itself of lower-value patents over the past decade, the company has significantly improved its Technology Relevance. This approach showcases the potential of a refined IP strategy to enhance business value and maintain a competitive edge. “Small (in comparison) but mighty! We focus on quality over quantity when it comes to creating and protecting innovation. We are thrilled that our efforts to create an impactful IP portfolio in our industry and adjacent industries have been validated by LexisNexis. IP creation tends to be well in advance of industry inflections, and by analyzing patents, we can identify emerging trends early despite patents generally being a lagging indicator.” Ryan Liebengood Corporate Director IP & Licensing, ASM LLeexisxisNNeexisxisIPIP.c.comom 1212
Innova琀椀on Momentum 2024: The Global Top 100 The Industries of the 2024 Top 100 Companies The Top 100 companies provide insights into industry distribution, seen in Figure 3, and its impact on the global innovation landscape. Pharmaceuticals maintains its strong position at the top of the industry list, increasing from 18 to 20 patent owners from 2023 to 2024. A notable trend for the Pharmaceutical industry, and what can contribute to their continued innovation momentum representation, is a focus on acquiring startups rather than relying solely on in-house innovation, leading to a landscape populated by more nimble players, including new list entrants like Acuitas Therapeutics, Tempus Labs and BioNTech. ® Source: LexisNexis PatentSight+™ 0 5 10 15 20 Pharmaceuticals 20 Semiconductors 15 Information Technologies 14 Chemicals and Materials 11 Consumer Goods 8 Medical Technologies 8 Electronics 8 Automotive 5 Engineering 5 Appliances 2 Biotechnologies 2 Technology R&D 2 Figure 3: The number of Top 100 innovators per industry sector. The Semiconductors industry also experienced growth, rising from 12 to 15 companies from 2023 to 2024, with companies like ASML, Intel, Qualcomm, and TSMC contributing significantly not only to electronics but also to advancements in automotive, medical technologies, and beyond. In contrast to Pharmaceuticals, the Semiconductors sector typically comprises larger organizations, leveraging scale to compete on price. “CureVac has been at the forefront of innovation in mRNA technology for more than two decades, a testament to the outstanding scientific prowess of our team. Our intellectual property portfolio continues to grow, with its high quality and relevance leading the way in the advancement of the entire RNA field.” Dr. Alexander Zehnder Chief Executive Officer CureVac LexisNexisIP.com 13
Innova琀椀on Momentum 2024: The Global Top 100 Tech giants, including Alphabet, Amazon, and Apple, representing the U.S. as an Information Technologies hub, also extend their influence into biotechnologies, medical technologies, and consumer goods, showcasing their multifaceted role in innovation. IBM, appearing on the list for the first time, announced in 2022 that they were shifting to a more focused patent strategy, most likely playing a role in their momentum this year. Diverse consumer goods companies like Nike, Proctor & Gamble, British American Tobacco, and CJ Corporation highlight the role of innovation in everyday products with a blend of technology, materials, and design advancements. Automotive and engineering innovations, demonstrated by companies like Boeing, Hyundai Motor, and new list entrants Aptiv, TRUMPF, and Tesla, continue to drive progress in the evolution of mobility solutions. Aptiv and Tesla have both been focusing efforts on autonomous driving and autonomous vehicle technologies. Tesla has increased its patent portfolio size by almost 14% within the last year while maintaining high quality and is strongly cited by players like Hyundai Motor and Toyota. Though only two Biotechnologies companies appear on the list, 10x Genomics shows one of the highest patent portfolio quality among the Top 100, innovating rapidly and increasing its innovation momentum by 50% since last year. "Competition in augmented reality optics is rising steeply through specialized players and dedicated innovation teams within tier-one companies. Lumus' patent portfolio reflects our razor-sharp focused strategy and long-term persistence. The Innovation Momentum methodology rewards these behaviors, allowing Lumus to succeed among giants." Mike Adel Vice President, Intellectual Property Lumus LLeexisxisNNeexisxisIPIP.c.comom 141414
Innova琀椀on Momentum 2024: The Global Top 100 Innovation in the World’s Regions The global innovation landscape exhibits a diverse array of advancements that reflect the unique strengths and strategic focuses of different regions. Today, there is a significant interplay between traditional industrial strengths such as pharmaceuticals and emerging technological frontiers like AI, with various parts of the world becoming hotspots for specific types of innovation, as seen in Table 1. Source: LexisNexis® PatentSight+™ Industry Sector Americas Asia EMEA Total Pharmaceuticals 15 1 4 20 Semiconductors 6 4 5 15 Information Technologies 9 2 3 14 Chemicals and Materials 0 5 6 11 Consumer Goods 3 4 1 8 Medical Technologies 7 0 1 8 Electronics 3 4 1 8 Automotive 2 2 1 5 Engineering 3 1 1 5 Appliances 0 2 0 2 Biotechnologies 2 0 0 2 Technology R&D 2 0 0 2 Total 52 25 23 100 Table 1: The breakdown of the number of innovators by industry sector and region. In the pharmaceutical sector, the United States has not only emerged as a global leader but also as a hub of pharmaceutical start-up culture. With 14 companies based in the U.S. featured on the Top 100 list, it builds on its long-standing tradition of excellence in medical research and pharmaceutical development. While start-ups like Tempus Labs and Revolution Medicines showcase entrepreneurial spirit in this field, veteran company Johnson & Johnson continues to spearhead innovations in robotic surgery and surgical tools, pushing the boundaries of health care and treatment. In a post-pandemic world, where the demand for medical breakthroughs and resilient health care systems is at its peak, this focus on health care innovation becomes increasingly crucial. The United States also has a strong position in Information Technology. This sector, including new list entrants IBM and Juniper Networks, continues to drive global digital advancements. Recent insights reveal the acquisition of Juniper Networks by Hewlett Packard Enterprise (HPE), announced in January 2024, aimed at integrating AI capabilities into HPE’s network infrastructure management. This dynamic approach positions the U.S. IT industry not only as a provider of fundamental technologies but also as a catalyst for advancements in artificial intelligence, advanced networking, cloud computing and other transformative technologies that shape the digital landscape for consumers and businesses worldwide. LexisNexisIP.com 15
IInnonnovvaa琀椀on Mtion Momenomentum 2024: tum 2024: TThe Ghe Global lobal TTop 100op 100 Samsung, headquartered in South Korea, and Huawei from China, both at the forefront of innovation in 5G wireless technology, are each in the Top 100 for the third year in a row, underscoring Asia’s pivotal role in the tech industry. The only two Appliances companies on the Top 100 list are also from the Asia region. Japan-based Daikin, most notable for their Heating, Ventilation, Air Conditioning & Refrigeration (HVAC&R) innovations, and Hong Kong-based Techtronic, focused on power tools, have both put an emphasis on sustainability. In the field of Semiconductors, list members from the U.S., like Qualcomm and Nvidia, have also made significant contributions to AI, underlining the country’s pivotal role in innovation. Similarly, the EMEA region boasts of influential players such as the Netherlands- based ASML and Germany's Infineon. The Asian region is represented by giants like Taiwan's TSMC and MediaTek. Asia and Europe have the most companies among the Top 100 in Chemicals and Materials. Interestingly, the Top 100 list does not include any players from the United States in this sector and instead highlights companies such as AGC, based in Japan, and the newly merged entity DSM-Firmenich, based in Switzerland. These industries are crucial for various applications, from green energy solutions to advanced manufacturing technologies. The presence of companies like ARAMCO, Saint-Gobain and BASF among the Top 100 innovators further emphasizes the innovation that promotes industrial progress. LexisNexisIP.com 1616
Innova琀椀on Momentum 2024: The Global Top 100 Assessing Potential: Valuation and Patent Data When it comes to companies emerging as top innovators in their respective space, their role often goes beyond mere product development to become critical in the extensive network of technological advancement and market strategy. They bring expertise, develop proprietary technologies and often outmaneuver larger, less agile companies in responding to market needs. This innovative prowess makes them prime M&A targets. The 2024 roster of top innovators also includes some of these impactful companies that were targets in 2023 and early 2024. Source: LexisNexis® PatentSight+™ 100 ) ale c garithmic S Mirati Therapeutics o 10 mpact (L Juniper Networks e I Splunk titiv ompe C 1 10 100 1000 Portfolio Size (Logarithmic Scale) Figure 4: Average patent quality (Competitive Impact) versus Portfolio Size of patent owners with smaller portfolios with specialized technologies. The bubble size of the patent owners represents the portfolio strength (Patent Asset Index). The bubble trail illustrates the portfolio development between 2019 and 2023. Mirati Therapeutics, for instance, owns a very high-quality portfolio, as indicated by its position in Figure 4, and has been competitive in the oncology therapeutics arena. Their focused research and development efforts have yielded influential patents, propelling them to the forefront of technological development in cancer treatment. Developing a small, focused and high-quality patent portfolio increases their valuation and allure in the eyes of larger pharmaceutical companies looking to expand their therapeutic portfolio and accelerate their growth strategies. As expected, they were acquired by Bristol-Myers Squibb in late 2023 due to their potential to alter the competitive landscape significantly. LexisNexisIP.com 17
Innova琀椀on Momentum 2024: The Global Top 100 Another similar company in the Top 100 is Splunk, whose expertise in managing and extracting value from vast data troves offers a compelling competitive edge. In today’s data-driven world, their ability to capture, index and analyze large datasets is crucial. With a portfolio of patents that they have been consistently building both in size and quality, as seen by their bubble trajectory, the acquisition move by Cisco underscores the strategic importance of data management capabilities and the strength of Splunk’s portfolio. This also signals a trend where traditional hardware and networking giants are keen to integrate advanced analytics into their offerings to stay relevant and drive innovation. Juniper Networks, a key competitor of Cisco is another significant player in the IT space with advancements in networking solutions, marked by its expanding and high-quality patent portfolio. Hewlett Packard Enterprise (HPE) has recognized its consistent focus on AI–driven innovation. It sees value in integrating Juniper Networks’ robust solutions into its offerings to enhance its competitive stance in the market. In early January this year, HPE announced its planned acquisition of Juniper Networks in an all-cash transaction. Each of these companies showcases how intellectual property development is not just a measure of innovation but a strategic asset that can turn them into a high-value acquisition target. For strategic decision makers at leading large companies, start-ups that own smallyet strong IP portfolios signal robust health and success, not only of their innovation teams but also of their overall business potential. In the landscape of M&A, such small yet highly innovative companies offer a combination of agility, advanced technology and market potential that is increasingly appealing to larger entities aiming to consolidate their market positions. “We have always believed that our growing portfolio stacks up against the best in terms of quality, especially compared to our peers working in the same areas of 5G, Wi-Fi, and media compression. We are thrilled to see this confirmed by the LexisNexis 2024 Innovation Momentum Report.” Esmael Dinan Founder and CTO Ofinno LLeexisxisNNeexisxisIPIP.c.comom 1818
Innova琀椀on Momentum 2024: The Global Top 100 Academics and Public Research While the Top 100 features exclusively corporate entities, several academic and public research innovators have also demonstrated exceptional Innovation Momentum, meeting the same criteria, and we acknowledge their contributions here. A key trend in the academic and public research landscape is the pronounced focus on health care and chemistry among institutes in the U.S. This emphasis reflects the urgent global challenges and opportunities in these fields, ranging from developing new pharmaceuticals and treatments to the advancements in chemical engineering and materials science. The significant patent holdings in these areas by leading universities and research organizations—like the Broad Institute, a partnership between Harvard and MIT partnership, and Mass General Brigham—underline their commitment to tackling complex health and environmental issues. The Broad Institute owns the portfolio with the highest average quality in this category, as indicated by its position on the y-axis of Figure 5. ® Source: LexisNexis PatentSight+™ 15 y Broad Institute 10 Dana-Farber mpact Harvard e I titiv University of Pennsylvania ompe Mass General Brigham C 5 MIT University of California Stanford University Zhejiang ETRI Korea University of Lab Texas System Fraunhofer ‡ x 0 CARDC 0 2500 5000 7500 10000 12500 15000 Portfolio Size ‡China Aerodynamics Research and Development Center Figure 5: Average patent quality (Competitive Impact) versus Portfolio Size of patent owners in the Academics and Public Research sector. The bubble size of the patent owners represents the portfolio strength (Patent Asset Index). LexisNexisIP.com 19
Innova琀椀on Momentum 2024: The Global Top 100 Information Technology is another research area where academic institutions are making substantial strides, seen in Figure 6. The digital era has necessitated a deep dive into areas like data analytics, cybersecurity and AI, where academic research contributes to theoretical understanding and drives practical applications. Organizations from China like the China Aerodynamics Research and Development Center (CARDC) and Zhejiang Lab lead the pack in this area, with a considerable portion of their portfolio focusing on technologies in the IT sector. The patents and research coming out of these institutions in IT signify strong engagement with the digital transformation that is reshaping businesses and societies globally. Source: LexisNexis® PatentSight+™ 0 50% 100% Broad Inst. CARDC Dana-Farber ETRI Korea Technology Fraunhofer Information Telecommunication Harvard Health Care Mass General Brigham Chemistry MIT Electronics Stanford All Others University of California University of Pennsylvania University of Texas System Zhejiang Lab Figure 6: Major technology fields covered by the Academics and Public Research patent owners. The IT patents and research coming out of academic and public research institutions signify strong engagement with the digital transformation that is reshaping businesses and societies globally. LLeexisxisNNeexisxisIPIP.c.comom 2020
Innova琀椀on Momentum 2024: The Global Top 100 Closing Summary “Innovation Momentum 2024: The Global Top 100” paints an inspiring portrait of intellectual property as a key player propelling businesses toward innovation. The report stands out due to its unique perspective, powered by the Patent Asset Index and the Innovation Momentum methodology. By employing qualitative metrics and focusing on recent advancements, it effectively pinpoints genuine innovators. This is evident in companies such as Mirati Therapeutics, Splunk and Juniper Networks, demonstrating that intellectual property development is a strategic asset beyond mere product development, propelling them into high-value acquisition targets. The same trend is observed in larger, more established players like IBM, making its debut on the list. IBM's strategic emphasis on quality patents highlights its commitment to innovation and adaptability in the dynamic technological landscape. This entry underscores the company's enduring relevance, leveraging its rich history while remaining at the forefront of cutting-edge advancements. In this dynamic environment, IP departments are emerging as architects of strategic conversations. As we collectively strive to unlock the full potential of intellectual property, it is a call to action for IP practitioners to be equipped with the nuanced understanding required for strategic dialogues. Patent data serves as a powerful arsenal in the boardroom, providing tangible insights into innovation landscapes, potential threats and competitive advantages. Armed with this information, IP professionals can strategically navigate discussions, contribute informed perspectives, and play a pivotal role in shaping the intellectual property strategy aligned with broader business objectives. Patent data serves as a powerful arsenal in the boardroom, providing tangible insights into innovation landscapes, potential threats, and competitive advantages. LLeexisxisNNeexisxisIPIP.c.comom 2121
Innova琀椀on Momentum 2024: The Global Top 100 About the Authors Dr. Dirk Caspary Principal Consultant ® LexisNexis Intellectual Property Solutions Dr. Dirk Caspary is a senior consultant with excellent knowledge in the field of patent search, portfolio analysis, and competitive intelligence. He has extensive experience in the analysis and evaluation of patents and patent portfolios, e.g., in the context of patent prosecution, licensing programs, or defense against third-party patent assertions. Dr. Caspary has broad technical knowledge; demonstrates rapid comprehension of complex technologies; and has comprehensive expertise in semiconductor technologies, which he has acquired through many years of consulting work for leading global semiconductor manufacturers, reverse engineering, and his work in the semiconductor industry. William Mansfield Head of Consulting and Customer Success ® LexisNexis Intellectual Property Solutions William Mansfield is the head of consulting and customer ® success in the Americas and EMEA for LexisNexis Intellectual Property Solutions. He is responsible for overseeing the negotiation, creation, and delivery of customer consulting, along with managing the Customer Success team. He works closely with numerous international and Fortune 500 companies and others to ensure effective deployment of patent analysis for business strategy, M&A due diligence, portfolio management, and other needs. Mr. Mansfield has an economics background and experience in market and R&D strategy in the solar industry. LexisNexisIP.com 22
Innova琀椀on Momentum 2024: The Global Top 100 About the Patent Asset Index The Patent Asset Index represents a measure of the innovative strength of a patent portfolio. A patent family is more valuable when other innovations build on the technology protected by this patent family and by the scope of protection that the patent family holder considers appropriate. Technology Relevance er t om la ed fr eiv ec tions r lobal cita G t en t e, pa ag or ed f ts, adjust en t pa field gy echnolo es and t actic e pr ffic o mpact e I titiv ompe C t en t a alue: 1 P v e ag er v A t ength Asse ndividual str I amily t f en t a pa f o x nde I ength tal str o T o Market Coverage oli t portf en t a pa f o e activ y ed b ect t o e pr t siz e ark M t en t ts and pending pa en t pa tion en v ertain in tions on a c applica t: 1.0 en t .S. pa ed U t an gr f alue o V Ernst, H., Omland, N. (2011): The Patent Asset Index - A New Approach to Benchmark Patent Portfolios. World Patent Information 33, pp. 34–41. Ernst, H., Omland, N. (2011): The Patent Asset Index - A New Approach to Benchmark Patent Portfolios. World Patent Information 33, pp. 34–41. Technology Relevance is a measure of the importance of a patent family and the technological invention it protects. It is calculated based on the total number of worldwide citations that are received from other patent families and is adjusted for the facts that (1) older patents are cited more often, on average, than younger patents; (2) international patent offices follow different citation rules; and (3) different citation practices are prevalent in different technology fields. Market Coverage is measured as the size of the markets in which a patent family is protected, as benchmarked against the world’s largest economy—the United States. In this context, the gross national income (GNI) of a country is used as a proxy for the relative size of its national market. Market Coverage is calculated based on granted and pending patents, adjusted for the patent family’s protected market size. Competitive Impact represents the individual strength of a patent family and is obtained by multiplying the Technology Relevance and the Market Coverage of each patent family. It is stated relative to the other patent families in the same field. For example, a value of three means that the patent family is three times as important as the average patent family in the field. The value obtained by adding up all the Competitive Impact values of all patent families constituting the portfolio is defined as the Patent Asset Index, which measures the overall strength of a patent portfolio. The Patent Asset Index methodology is based on many years of scientific research and was validated in peer-reviewed academic publications and studies. Our patent analytics platform, LexisNexis® PatentSight+, featuring the Patent Asset Index, has been used for several years by leading companies in many industries, as well as governmental bodies and organizations, e.g., in antitrust consideration or merger clearances. Numerous companies trust the Patent Asset Index to illustrate the strength of their patent portfolios in annual shareholder reports and other stakeholder communications. LexisNexisIP.com 23
About LexisNexis® PatentSight+™ LexisNexis® PatentSight+™ enables core IP activities such as competitive intelligence and benchmarking, portfolio optimization and more, by bringing together highly curated and enriched datasets, cutting-edge analysis tools with streamlined workflows and powerful visualization capabilities, all within a single platform. With PatentSight+™, enhance decision making with extensive data quality and coverage, provide a competitive edge with actionable insights powered by advanced AI–driven analytics, and elevate IP strategies with impactful communication tools. About LexisNexis® Intellectual Property Solutions In today's rapidly evolving landscape, IP professionals face the daunting challenge of navigating a complex intellectual property landscape on top of increasing cost pressures. These challenges demand clear, actionable insights to make strategic decisions with confidence. Our mission is to bring clarity to innovation by providing the IP community with contextualized and evidence-based insights and analytics. We enable strategic decision makers to minimize risk and maximize the value of their IP using highly curated, enriched data sets and powerful solutions that leverage artificial intelligence, natural language processing, and compelling visualizations. Our broad suite of workflow and analytics solutions (LexisNexis® IP DataDirect, LexisNexis® IPlytics, LexisNexis Cipher, LexisNexis PatentAdvisor®, LexisNexis® PatentOptimizer™, LexisNexis® PatentSight+™ and LexisNexis® TotalPatent One®), enables companies to be more efficient and effective at bringing meaningful innovations to our world. We are proud to directly support and serve these innovators in their endeavors to better humankind. ® To learn more visit us at: LexisNexis Intellectual Property Solutions LexisNexisIP.com Bringing Clarity to Innovation Publication Date: February 2024 LexisNexis, LexisNexis PatentAdvisor, LexisNexis PatentOptimizer, LexisNexis TotalPatent One and the Knowledge Burst logo are registered trademarks of RELX Inc. PatentSight+ is a registered trademark of PatentSight GmbH. IPlytics is a trademark of IPlytics GmbH. Cipher is a trademark of Aistemos Limited. Other products or services may be trademarks or registered trademarks of their respective companies. © LexisNexis 2024.
