Economy
Amit Mishra
Nov 18, 2024, 02:01 PM | Updated 02:01 PM IST
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India is among the top ten countries globally for all three major intellectual property (IP) rights—patents, trademarks, and industrial designs, according to a World Intellectual Property Indicators (WIPI) report.
The report acknowledges the improvements in India’s patenting process and the sharp increase in grants, especially to residents.
In the world of global innovation, India is no longer a bystander—it’s a contender to watch when it comes to patents.
What the Report Says
A patent is more than just a legal document—it’s a signal of innovation. Granted to inventions meeting the benchmarks of novelty, non-obviousness, and industrial applicability, patents offer exclusive rights for a limited period (typically 20 years).
The year 2023 saw a record-breaking surge in global patent activity, with 2 million patents granted—a 10 percent increase over 2022 and the fastest growth since 2012. China led the charge with a staggering 9,20,797 patents, nearly triple the number granted by the United States, the runner-up.
India secured the sixth spot globally with 76,053 patents, a 149.4 percent increase in patents in 2023 compared to the previous year, underlining the country’s fast-evolving IP ecosystem, the report said.
Computer technology leads the way in patent filings at the Indian Patent Office, accounting for 11 per cent of total applications, as reported by WIPO.
Among the other top application areas, medical technology saw the most applications, followed by digital communication and IT methods for management.
Who Gets The Cake
For the first time, Indian residents (primary filers based in India) have outpaced foreign applicants in filing patents, marking a major shift in the country’s intellectual property landscape.
Traditionally dominated by multinational corporations, India’s patent filings are now driven by local innovators. In 2023, more than half of all patent applications received by the Indian IP office came from resident applicants—a milestone.
This shift is particularly notable on a global scale, with India showing the most significant change in resident versus non-resident filings over the past decade.
Resident filings surged from just 24.8 percent in 2013 to an impressive 55.2 percent in 2023, reflecting a heightened awareness of intellectual property rights in the country, particularly patents, and their commercial implications.
Quarter of Concern
Beyond the numbers though, several areas of concern exist within India’s patent ecosystem.
Neighbouring China has soared to 1 million IP applications annually, commanding 47.2 percent of the global share, while India filed just 90,298 patents in 2023, struggling to enter the global top five.
A glaring concern is the dominance of non-resident patent grants. In 2023, 78 percent of patents granted in India were to foreign applicants—a sign that foreign entities still overshadow domestic innovation.
There is also a gender disparity. Only one in ten inventors listed in India’s published Patent Cooperation Treaty (PCT) applications are women.
In terms of patents per unit of USD 100 billion GDP—an indicator of patent activity relative to economic size—India falls short of the top ten, a list predominantly occupied by high-income nations with significant R&D expenditure.
However, over the last decade, India’s patent-to-GDP ratio has more than doubled, rising from 144 to 381, driven by a faster growth rate in resident filings compared to GDP.
The Staffing Deficit
Globally, the best practice for patent application processing is around two to three years. Yet, in India, the average processing time hovers just under five years, with some categories, like biotech, taking up to nine years. Key factor behind this delay? A severe shortage of manpower.
As of 2023, India had only 221 patent examiners, compared to 8,180 in the United States. This stark difference in workforce size contributes to the slow pace of patent processing.
Moreover, the average experience of patent examiners in India is just 4.5 years—significantly lower than their counterparts in other leading countries. This lack of manpower and experience results in bottlenecks, slowing down the system and reducing its efficiency.
Bringing Patents To Life
Patents alone don’t tell the full story of innovation; it’s how these patents are put to use that truly matters. For India to rise as a global innovation centre, the focus must shift from simply filing patents to industrialising and commercialising them.
Looking globally, the contrast is clear. In China, despite the large volume of patents granted, many fail to reach their commercial potential. A report from the China National Intellectual Property Administration (CNIPA) revealed that universities hold 26.5 percent of patents, but only 3.7 percent are industrialised and 2.9 percent licensed.
In contrast, the United States sees far fewer university-held patents, but about 40–50 percent of them are licensed for commercial use, showcasing a far more effective model for turning academic innovations into market success.
All things considered, despite India's rapid progress in patent applications and grants, the low quality of patents is an undeniable weakness that stands in the way of the country developing into a real patent powerhouse.
Shifting focus to innovation-driven, high-quality filings could be the game-changer needed for India to truly lead in the world of intellectual property.
However, this is no easy task. India’s research system, weighed down by bureaucratic inefficiencies, often prioritizes quantity over quality, leading to redundant and low-level research outcomes.
Until India can overcome these systemic barriers, it will struggle to transition from a patent-filing nation to a global leader in innovation.