Documente Academic
Documente Profesional
Documente Cultură
DISRUPTIVE,
GAME-CHANGING
INNOVATION
Introduction..................................................................................................................................... 4
Defining the trend These firsts were possible because of the massive investment
Collabovation is a term used to represent the elegant in innovation–in collabovation–made by organizations
convergence of collaboration, innovation, cultivation, around the world. Overall, global innovation activity saw a
cross-pollination and calibration, swirled into the powerful notable uptick over the last year, with Medical Devices, Home
process of bringing inventions to life with strategic partners Appliances and Aerospace leading the charge. These sectors
and suppliers. Coming up with a novel idea can be a feat all experienced year-over-year, double-digit growth, as did
in itself, but actually bringing one to market is an entirely Information Technology and Oil & Gas. In fact, every sector
different game. The Lifecycle of Innovation, from discovery was in the black outside one: Biotechnology, which decreased
and protection to commercialization and launch, involves slightly given a leveling off in that industry.
everything from research and prototyping to intellectual-
property protection and product monetization. In today’s Moving the needle
fast-paced world of science, technology and medicine, where
Collabovation is happening between corporations
disruption and multi-tiered competition are the norm, it takes
and universities. Government agencies and research
collabovation to truly succeed.
centers. Start-ups and bellwethers. Physical and mental
boundaries are being lifted. Like-minded, similar-goaled
Breaking through organizations are finding each other. A web of information
Think of the many breakthroughs that happened over the is aligning partners and best practices in an effort to
last year. It was the first time astronauts from different collaboratively innovate.
countries embarked on the longest human space mission This report showcases some of these instances, as well as
by two men: American Scott Kelly and Russian Mikhail uncovers key innovation trends for 2016. Examination of
Kornienko, occupying the International Space Station for global patent activity provides a glimpse into what’s hot,
nearly a year. It was the first time self-driving cars were what’s not, what’s coming next, who leads and which
tested on public roadways in certain jurisdictions around the regions are the most active.
world. And, the first time a biosimilar drug was approved in
Welcome to the 2016 State of Innovation. We invite you
the US, while certain other drugs were being tested on 3D
to ponder these pages and consider new partners with
printers. It was also the year when the Internet of Things (IoT)
whom to collabovate.
garnered mass appeal, allowing homeowners to manage their
dwellings with omnipotent-like intelligence, while cloud
storage became mainstream.
Vincent J. Caraher,
President,
Thomson Reuters IP & Science
All Technology
Aerospace
Automotive
Biotechnology
Information Technology
Home Appliances
Medical Devices
Pharmaceuticals
Semiconductors
Food, Beverage & Tobacco
Telecommunications
Figure 1: Global Innovation Output
Across 12 Sectors (2009–2015)
Source: Derwent World Patents Index
2,500,000
Source: Derwent World Patents Index and Thomson Innovation The relationship between research and innovation is well
understood. Analysis shows that scientific and scholarly
research typically precedes discovery and the protection
Sign of the Times of innovation rights by a few years. It’s therefore prudent to
Looking across this seven-year span, it’s clear the figures look at what topics, institutions and regions lead globally
reflect a sign of the times. The world was rebounding from the in research to get an even richer understanding of what the
greatest economic crisis in the last 75 years, while technology future holds.
had catapulted the Digital Era into the next stratosphere,
A look across the last decade and research related to the
creating opportunities heretofore unknown.
12 technology areas, as contained in the Web of ScienceTM,
Matt Damon gave us a peek at what life may be like for the first settlers on Mars in the movie
The Martian. As far-fetched as the idea of living on another planet may seem, it’s now projected
that the first humans could inhabit Mars within the next 25 years.1 Such a feat is going to require
an immense amount of innovation and collaboration as earthlings look to colonize Mars, and
potentially other parts of our galaxy.
In fact, it is reported that the US National Aeronautics and an initiative to find private sector partners with which to
Space Administration (NASA) will spend $18.5 billion on explore space in its “Space Exploration as a Driver for Growth
its 2016 space exploration plan.2 Its goals this year include and Competitiveness: Opportunities for the Private Sector,”
increasing utilization of the International Space Station where it states: “ESA is looking into novel ways to advance
(ISS) science and technology hardware by 70 percent and its strategic goals for space exploration, based on strategic
launching 13 science and cargo missions, among many partnerships with the private sector, including entities from
other things. the space and nonspace industry.3 ”
In the race to colonize space, partnerships abound. There are Similarly, articles about NASA partnering with Boeing,
many public/private sector arrangements underway, related Elon Musk’s SpaceX and others reaffirm the commitment
to the Collabovation theme mentioned earlier. The European and passion to make history and be the first to get to Mars,
Space Agency (ESA) recently launched or other parts of the galaxy and universe.
“ The recent ‘Martian’ movie starring Matt Damon is science-fiction in 2016, but with
NASA and ESA actively collaborating with private sector partners such as Boeing
and SpaceX to provide innovative solutions for the financing and execution of space
exploration missions, experts predict that human settlements will be operational on
Mars within 25 years.
Such a highly complex project will require massive innovation across a wide range
of technologies, not just ‘spaceflight’ aspects of aerospace. To sustain and protect
human life in extremely hostile alien environments will involve new solutions for food
and water processing, power generation, communications, healthcare and more, so
partners from ‘non-space’ industry sectors will also be major contributors and this
will in turn drive further innovation for Earth-based applications.”
—George Jack, Engineering Expert, Thomson Reuters
1 http://www.techinsider.io/buzz-aldrin-mars-plan-2016-4
2 https://www.nasa.gov/sites/default/files/files/NASA_FY2016_Summary_Brief_corrected.pdf
3 http://esamultimedia.esa.int/docs/hso/ESA_CFI__Space_Exploration_as_a_Driver_for_Growth_and_Competitiveness.pdf
“ [Our most innovative asset is] the shared belief that our products are useful to
society, and that we can help make the world a better place. For example, people
all over the world want to continue to “go places”, and that will only be possible if
we continue to reduce emissions, a very timely challenge…”
—Pierre Fabre, Senior Executive Vice President,
Research & Technology, Innovation Safran
Over the last year, cars have evolved from being some of the most sophisticated computers on
wheels to being advanced artificial-intelligence transportation chariots. Not only do today’s
automobiles give drivers guidance when backing up, adjust to lane creep and intelligently adapt
to weather conditions, they can also identify the mood and, coming soon, consumption habits of
the driver based on steering-wheel sensors. This is all in addition to the vehicle’s already amazing
ability to operate itself independently.
The International Consumer Electronics Show (CES) in Las Auto-collabovation is alive and well. Daily news headlines tout
Vegas, Nevada, US, featured more automobile exhibitors the latest partnerships in this space. For example, Renault
than ever before this year, which brought the show and ARZA, in order to bring the electric vehicle market to
organizers to create a “Vehicle Intelligence Marketplace” Canadian masses5; Ford and Spotify, to enhance the musical
for the first time.4 Such rapid automotive advancement is experience of FordPass customers; and organizations
the result of thousands of hours of research, development, like the Open Automotive Alliance (OAA), which aims to
experimentation and innovation by auto manufacturers and make automotive technology safer, more seamless and
their partners around the world. more intuitive.6
4 http://www.ces.tech/News/Press-Releases/CES-Press-Release.aspx?NodeID=ebcec984-2cf5-49ad-b7dc-f181cbf49932
5 http://www.automotiveworld.com/news-releases/renault-azra-invests-40-million-canadian-transport-electrification/
6 http://www.openautoalliance.net/#about
The US, Germany and Japan round out the bottom half
of the Top 10 with Ford (US), Daimler (Germany), GM (US)
and Nissan (Japan) taking sixth, seventh, eighth and tenth
places, respectively.
“ Although driverless vehicles won’t be ruling the roads in 2016, data shows that they
will likely become a reality in the years to come. Our fascination with this emergent
technology continues to abound. There was a time when it was difficult to imagine
the ability to get from one point to another in a vehicle without being completely
alert and in control of the automobile. But if we’ve learned anything in the 21st
century, it’s that technology seems to be boundless, as long as you have the right
collaborators at the helm.”
—Vin Caraher, President, Thomson Reuters IP & Science
7 http://www.reuters.com/article/idUSL3N17A3AE
One of the most significant, and potentially most life transforming, was that of the CRISPR
(clustered regularly interspaced short palindromic repeats) initiative and the editing of a human-
embryo germline. CRISPR “interference” involved making targeted modifications to segments of
DNA to alter its immunity. Such work has implications not only for humans, but also for food crops
and other plants and animals.
Another set of firsts involved a series of bio-based approvals There’s no disputing that the advent of biotechnology
by the US Food and Drug Administration (FDA), including the has created an experimental sandbox for everything from
first biospecific antibody: Amgen’s Blincyto; the first biosimilar genetically manipulating DNA to modifying the composition
drug: Novartis’ Zarxio; and the first biotech food animal: of plants and printing drugs using bio-organisms. While this is
Aquabounty Technologies Inc.’s salmon, which grows cutting-edge work, the pace of innovation fell slightly short
faster than farmed fish. of where it was a year earlier.
5% 2%
% 10%
% Subsectors 2015 2014
Change
70% General biotechnology 30,197 29,374 3%
13% Diagnosis of diseases 5,614 6,984 -20%
13%
10% Cancer treatment 4,412 4,855 -9%
30%
We live in the era of here-and-now. From Instagram and OoVoo to Snapchat and Vine, social
media and other outlets set new beauty standards with images of the Kardashians, Beyonce and
Taylor Swift leading the way. Selfies and facetime show us daily where we need to primp, plump
and perfect, spurring today’s cosmetic-conscious fad.
The American Society of Plastic Surgeons recently reported from 2000)—and this just starts to scratch the surface
there were 6.7 million Botox procedures done in 2015, of the litany of possible cosmetic surgeries available.8
1 percent more than the prior year, as well as 27.5 thousand
lip-augmentation surgeries (a 48 percent increase from 2000) Bigger is better in today’s beauty-bingeing world,
and 12.7 thousand cheek-implant procedures (up 21 percent and cosmetic innovations are making it all possible.
“ Fuelled by the immediacy and intense magnifying focus of social media images,
being ‘close-up ready’ has never been more desirable nor more demanding.
Consumers are better informed than ever before and have high expectations:
the distinction between cosmetics and pharmaceuticals becomes ever more
blurred year on year and high-tech delivery formulations become the norm.
The instant worldwide exposure of new products and technology has brought
major new players into the market, particularly from the innovative Asian beauty
sector. Maybe the emergence of companies traditionally less known for cosmetics
and personal care shouldn’t be any surprise, as modern high performance beauty
products incorporate cutting-edge pigment formulations, reflective microparticles
and polymers for an Insta-perfect finish.”
—Peta Leggatt, DWPI Content Specialist-Pharmaceuticals, Thomson Reuters
8 http://www.plasticsurgery.org/Documents/news-resources/statistics/2015-statistics/2015-plastic-surgery-statistics-report.pdf
2% 2%
% 17%
% Subsectors 2015 2014
Change
41% Skin 6,063 5,407 12%
41%
38% Make-up 5,597 5,722 -2%
17% Hair 2,522 2,614 -4%
Despite plastic surgeons being busier than ever Asia continues to have a strong foothold in this sector, with
(skin-related innovation is up 12 percent), the bulk of the Japan leading the way. Germany has the most significant
cosmetic subsectors dipped over the prior year. Fragrances presence in Europe, as more chemical companies branch
experienced the largest drop, of 15 percent. Nevertheless, into cosmeceuticals. In the US, it’s a combination of
Cosmetics & Well Being came out on the positive side consumer-product and chemical companies that are
overall, with a modest gain of 3 percent over 2014. driving beautification.
The world’s most active Cosmetics & Well Being innovator Brazil once again takes the top spot in terms of cosmetics-
is, surprisingly, South Korea’s LG Household & Healthcare, related scientific research, with the University of Sao Paulo
part of the LG family of businesses focused on helping and State University of Campinas taking the first and
customers realize their “beauty, lifestyle and culture eighth spots in terms of research output, respectively.
dreams.” This is the first time since the inception of the This perhaps isn’t a huge surprise as Brazil is also among
annual State of Innovation that a traditional cosmetics the top five nations in the world in terms of the overall
company has been trumped by a technology-based number of aesthetic plastic surgeries performed annually.9
company, yet another example of an organization (LG)
that’s spreading its wings into tangential areas. There’s no doubt about it: our socially connected world,
technology, nano-particles, new molecular entities and
In the Make-up subsector, L’Oreal leads the pack with more the accessibility of new treatments are driving a boom
than twice as many inventions (1,636) as the next nearest in beautification. The prospects are ripe for this sector to
innovator, KAO (776). This continues L’Oreal’s leadership continue its upward climb. We may not all be look-alikes
streak in Make-up, which it has consistently dominated for Jennifer Aniston, recently named the 2016 World’s
since we’ve been tracking the field. Most Beautiful Woman by People magazine, but today’s
innovations certainly make replicating “that look”
a lot easier.10
“ The French National Center for Scientific Research (CNRS) was established to
carry out research. Performed by more than 1,000 units throughout France and
abroad, this research improves knowledge, some of which results in breakthrough
innovation. Technology transfer is a logical extension of our research activities,
entrusted to more than 30,000 staff and partly led in partnership with industry.”
—Marie-Pierre Comets, Director of Innovation & Business Relations, CNRS
9 http://www.prnewswire.com/news-releases/the-international-society-of-aesthetic-plastic-surgery-releases-global-statistics-on-cosmetic-
procedures-300108852.html
10 http://www.people.com/people/package/article/0,,20998070_21001278,00.html
Despite warnings that they’re bad for your health, cigarettes continue to dominate the world
stage in the category of Food, Beverage & Tobacco innovation, while also topping the charts for
companies with strong dividend payouts.
A recent Thomson Reuters Lipper Fund analysis stated that 2016 will be the year when consumer demand for “real” food
“CME Group, Dow Chemicals and Philip Morris are companies starts to seriously take effect as a decreased appetite for GMO
with strong fundamentals…Philip Morris is seeing good and non-natural foods gains momentum. GMO may be the
demand for cigarettes and enjoying healthy margins as its way to go to make certain staple crops have higher yields
business looks stronger than ever…If you are looking for and be more defect-resistant, however a growing number of
strong dividend payers, these companies may be worth consumers are demanding healthy food products with clear
a second look.” 11 labeling. Similarly, the Beverage market continues to move
away from sugary drinks toward healthy drinks and teas.
Where innovation really needs to happen, however, is in
the area of Food, for better ways to feed the world’s growing
population and produce healthy, non-processed alternatives
that don’t add to negative health effects.
“ We know that our food may contain a wide range of potentially hazardous
substances. But interesting solutions abound. The EFSA European Food
Consumption Database is using data in innovative ways to identify and help
reduce the risk of contaminated food, particularly among vulnerable populations.”
—Davide Arcella, Scientific Officer
European Food Safety Authority (9billionbowls.com)
11 http://lipperalpha.financial.thomsonreuters.com/2016/04/top-dividend-payers-include-cigarettes-chemicals-and-financials/
14%
% 30%
% Subsectors 2015 2014
Change
30% Meat 8,256 9,033 -9%
28% Brewing 7,662 6,479 18%
26% Bakery 7,267 6,841 6% 26%
While food-related innovation can be found in the which it will need to find a way to sustain in the coming
Biotechnology sector where GMO crops and engineered- decades as earth’s population nears 10 billion people,
organism inventions are categorized, the Food, Beverage and smoking is still an accepted habit in this culture.
& Tobacco technology area covers inventions specific to the
manufacturing and composition of items outside of what is China Tobacco Hubei Industries Corp. is the most
genetically modified. prolific innovator across the entire sector, with 1,122
unique inventions, followed by Qingdao Xiuxian Foods Co.,
The sector remained predominantly flat over the last year, Philip Morris, University of Guangxi and Inst Agro Food
growing by just 1 percent or about 300 inventions more Science & Technology Chinese, all of which had 165 or fewer
than the prior period. The largest growth was in the area inventions for the same period. This mix of organizations
of Brewing, which bubbled over 18 percent to 7,662 unique gives a glimpse into their focus and priorities.
innovations last year, followed by Bakery, which puffed up
6 percent. Meat, Tobacco and Sugar & Starch all In terms of Brewing innovation, China again leads the
experienced declines. world, being home to the three most active Brewing
innovators globally: University of Jiangnan (217 inventions),
The top 10 most active innovators in this category are all Harbin Shinbao Wine Industries (166 inventions), and
from China except one: Philip Morris in the US. This makes Luzhou Pingchuang Technology (155 inventions).
logical sense since China has the world’s largest population,
“ The United States and China alone represent 68 percent of all of the patent
documents associated with crop breeding around the world. These two countries
are larger than the closest competing country by at least a factor of five.”
—Bob Stembridge, Senior IP Analyst, Thomson Reuters
The lyrics of a popular folk song for children read: “The head bone’s connected to the…neck bone;
the neck bone’s connected to the…back bone; the back bone’s connected to the…thigh bone…”
and so on. There could be a new take on this regarding our homes today. It might go something
like this: “The smart phone’s connected to the…coffee maker; the coffee maker’s connected to
the…refrigerator; the refrigerator’s connected to the…thermostat; the thermostat’s connected
to the…garage door…” and so on.
This isn’t such a far-fetched concept. Today’s connected “The IoT revolution will offer us opportunities and ease-of-use
homes are technologically linked in ways we couldn’t have we could have never imagined, but suddenly find ourselves
imagined a decade ago. And, it’s exactly this connectivity unable to live without…We need to give IoT time to thrive,
that’s driving much of the innovation in Home Appliances. and identify the markets for it that make sense. The Internet
The Internet of Things (IoT) has brought changes to the way of Things is really about finding new places that make
we live and what we expect. New technologies incorporated sense for the Internet. Let consumers decide what their next
into our homes, offices, clothing and appliances make them Internet will be,” said Shawn DuBravac, chief economist of the
smarter, more efficient and better managers of us. Consumer Technology Association (CTA) and author of Digital
Destiny: How the New Age of Data Will Transform the Way We
Live, Work, and Communicate.12
“BlackBerry began as a startup company that invented mobile computing. I can say
without reservation that the spirit of innovation, the drive to continue to improve,
is alive and well in this company. Every part of BlackBerry is driven by the desire to
create the most productive, secure and private solutions in the mobile marketplace—
that includes revolutionary smartphone features, software that makes critical
business and government communications more secure, and coming up with new
ways of enabling devices to communicate with one another through the Internet
of Things (IoT).”
—John Chen, Executive Chairman & CEO, BlackBerry
12 http://www.cio.com/article/3019286/ces/what-will-the-internet-of-things-be-when-it-grows-up.html
7%
7%
%
% Subsectors 2015 2014
Change
9%
43% Kitchen 39,026 33,590 16%
34% Heating/Air Conditioning 30,552 24,316 26% 43%
The IoT is a major contributor to what’s driving the Information Technology (IT) boom with its
increased demand for software, sensors and chips to connect our homes, cars and gadgets to
the Internet. In fact, it’s predicted that there will be 22 billion IoT installed devices by 2018.13
Cloud-based technology is another advancement that’s also Add to these technological trends things such as
pushing IT boundaries. It’s expected that at least half of IT cognitive computing, artificial intelligence, virtual reality
spending will be cloud-related in the next two years, with it and blockchain, among many others, and it’s clear why IT is
reaching 60 percent of all IT infrastructure and 60 -70 percent the place to be. It’s the underpinning and connective tissue of
of all software, services and technology spending by 2020.14 so many technological advancements, making it (IT) the true
cornerstone of the Digital Age.
“ Information Technology (IT) is the true cornerstone of the Digital Age, and with the
world’s data estimated to increase 800% by 2020 driven by the Internet of Things
(IoT), major IT trends such as Cloud computing and Cognitive computing will
rapidly develop to provide the flexibility and intelligence required to store, analyze
and provide services based on this vast repository of human knowledge.”
—George Jack, Engineering Expert, Thomson Reuters
13 http://www.forbes.com/sites/sap/2015/11/05/idc-releases-top-ten-2016-it-market-predictions/#222cac383e6b
14 http://www.forbes.com/sites/sap/2015/11/05/idc-releases-top-ten-2016-it-market-predictions/#222cac383e6b
3% 2% 1%
5%
%
% Subsectors 2015 2014
Change 7%
“ Mobility is a key societal value, especially in megacities where half of the total
population is concentrated. Everyone expects more connected and autonomous
cars, with a simpler man to machine interface. Driving assistance features will
reinforce safety and reduce CO2 emissions, through optimized ‘eco-driving,’ while
improving the driving experience: this is the new concept of “Intuitive Driving”
that Valeo has developed.”
—Jacques Aschenbroich, CEO, Valeo
15 http://www.computerworld.com/article/3021280/ces/looking-to-the-future-5-new-ideas-from-ces-2016.html#slide1
Medical devices are essential staples in every operating and hospital room. They’re the literal
sustenance of life for diabetics, dialysis patients and those who are oxygen dependent, among
many others. In life-threatening situations, they are silently behind the scenes ensuring
emergency technicians have the tools needed for the most successful outcome.
These syringes, tubes, tanks, vials and other apparatus are chronic medical devices, they’re essential. For the developing
the hardware of the medical and health industry, much like world, they play an important role in the transformation to a
semiconductors are the hardware of electronic gadgets. developed economy.
Humans, as a whole, literally can’t live without them in the
appropriate situations. Medical device companies have a unique opportunity to
collabovate and partner with technology and software
It may not be much of a surprise then that the Medical Device businesses to marry their data insights with new solutions
sector is alive and healthy. In developed nations, it’s a part and provide valuable views to physicians and patients alike.
of daily life for many. With aging populations and growing Luckily for all of us, the sector is pulsing.
17%
%
% Subsectors 2015 2014
Change
33% Diagnosis, Surgery 45,112 36,929 22% 33%
Sterilizing, Syringes,
30% 41,528 31,898 30%
Electrotherapy
20%
Medical Aids,
20% 27,186 18,694 45%
Oral Administration
17% Dentistry, Bandages, Prosthesis 22,490 19,250 17%
Source: Derwent World Patents Index
30%
Top 10 Global Innovators–Medical Devices (2015)
Company Country # Inventions
Olympus Optical Japan 818
Siemens Germany 638
Toshiba Japan 627
Fourth Military Medical University China 623
Samsung S Korea 526
Terumo Japan 482
Philips Netherlands 479
Canon Japan 473
Medtronic US 362
Covidien US 358
Source: Derwent World Patents Index
Following the reported 6 percent year-over-year decline in non-Japanese company in that top 10. Germany is the clear
Medical Devices from the prior period, innovation in this leader in Europe, with 60 percent of the top 10 companies,
area got a shot in the arm to become the most active of and the US takes all of the top spots for North America,
all technology sectors covered. It had the largest year- with Covidien at the top followed by General Electric and
over-year increase, 27 percent, and all of its subsectors Boston Scientific.
had double-digit growth, with Medical Aids & Oral
Administration seeing the largest increase: 45 percent. Medtronic completed its acquisition of Covidien in 2015,
so their innovation activity for this period was reported
Japan is home to 40 percent of the world’s top 10 Medical separately. Their combined total output is more than 3,400
Device companies, including the world leader Olympus. inventions, however, making them the overall global leader
China and South Korea also have their hands in this sector, in Diagnosis, Surgery, even over Japan’s Olympus, with
with the Fourth Military Medical University and Samsung 3,246 unique inventions.
Electronics, respectively. Europe and the US also make
contributions to the global top 10, with two and three All of the top 10 most prolific medical device research
innovators each, respectively. institutions are from the US, with the FDA at the top
followed by Harvard and the University of Pennsylvania.
In the Diagnosis Surgery subsector, Japan has 90 percent It’s interesting that despite Japan’s leadership position in
of the top 10 innovators in Asia, demonstrating the nation’s innovation, it doesn’t rank in the top 10 of the most prolific
proclivity in this field. South Korea’s Samsung is the only scholarly research organizations globally.
“ For us, innovation isn’t just about creating exciting objects that catch the
imagination of our customers for one heady moment. Instead, it’s about perfecting
products, services and business models that help our customers to take care of
people and save lives, to live healthier and enjoy themselves, and to be part of a more
sustainable world. At Philips, Innovation is at the very core of our business strategy,
as well as our brand positioning and company’s mission: ‘At Philips we strive to make
the world healthier and more sustainable through innovation’.”
—Brian Hinman, Chief IP Officer, Philips
December 2015 will long be remembered as the month when the historic COP21 (Conference of
Parties) took place in Paris, where nearly 200 heads of state from around the world agreed to try
to slow global warming and overcome its negative effects.
Innovation is imperative in order to drive alternative ways a year earlier;16 Shell’s quarterly profit dropped by 70
to power the planet and reduce our dependence on fossil percent;17 and Total in France announced a 69 percent
fuels. It’s essential that we find more environmentally friendly decline,18 to name a few.
sources of energy without harmful greenhouse gas emissions.
Nevertheless, the sector continues to innovate. Some of the
Could Oil & Gas bellwethers hold the answer? innovation has been related to finding new ways to extract
energy from traditional sources, such as the process involved
Corporate quarterly-earning conference calls convey the in hydraulic fracturing, or ways to mitigate carbon emissions
toll of the state of today’s industry, with plunging prices and from existing oil-extraction methods. The big question on
decreasing demand. Exxon Mobil reported a 58 percent many analysts’ minds, however, is whether or not the large
decline in its 2015 third-quarter profit over the same period Oil & Gas players will be able to find sustainable solutions
to the COP21 challenge, via R&D investments or otherwise.
“ The rout in crude prices is snowballing into one of the biggest avalanches in the
history of corporate America, with 59 oil and gas companies now bankrupt…The
number of U.S. energy bankruptcies is closing in on the staggering 68 filings seen
during the depths of the telecom bust of 2002 and 2003…”
—Ernest Scheyder, Houston Energy Correspondent, Reuters News &
Terry Wade, Houston Bureau Chief, Reuters News
http://www.reuters.com/article/us-usa-shale-telecoms-idUSKCN0XV07V
16 http://www.nytimes.com/2016/02/03/business/energy-environment/oil-company-earnings.html?_r=0
17 http://oilprice.com/Energy/Energy-General/Top-Oil-Companies-Report-Dismal-Earnings.html
18 Ibid
%
% Subsectors 2015 2014
Change
Exploration, Drilling, 32%
64% 18,086 15,589 16%
Production
32% Fuels and Other Products 9,224 8,459 9%
3% Transportation and Storage 864 658 31%
64%
1% Refining 241 183 32%
Source: Derwent World Patents Index
“ These days, global businesses and technology environments see their existing
businesses and technologies being replaced at alarming speeds by new ones
through the combination and convergence of diverse businesses and technologies.
In the energy industry where LSIS engages, Internet of Things, big data, and
innovation of manufacturing are emerging, ushering in a smart era of ICT
combination and convergence and a direct-current era that can change the
existing electric power paradigm.”
—Ja-Kyun Koo, Chairman & CEO, LSIS
Do you know who makes your medication and where it’s from?
You might be surprised how much comes from Asia.
The pharmaceutical industry continues to grow thanks to its branching into creative, new markets.
Proof can be seen in the seven drugs expected to launch this year that Thomson Reuters predicts
will achieve blockbuster sales status of more than $1 billion in revenue by 2020, with some
predicted to hit $2 billion during that period.
The current pharmaceutical-success trend is a result of a Collabovation is a prerequisite for future pharmaceutical
concoction featuring an increased focus on rare diseases, growth in order to meet the health and drug needs of a
ongoing development of more convenient Fixed Dose larger population, especially in developing nations, and to
Combination (FDC) regimens and the continuation of the ensure the longevity of an aging demographic as well. R&D
conflict between price versus access to medicines. These, models will increasingly shift to involve partnerships between
alongside new treatments involving bio-organisms, several pharmas and either their suppliers or partners, allowing each
new vaccines (such as for malaria and dengue fever) and party to focus on its respective area of expertise. Testing of
immune-therapies have given the sector a burst of adrenaline. “virtual beings” is also expected to expedite development and
trial cycles, bringing drugs to market faster and with
more successful outcomes.19
“ The relationship between drug prices and the costs of development is expected to
be a major focal point for drug companies, investors, regulators and politicians this
year. With the rise of global healthcare costs, the need to demonstrate meaningful
impact will be greater than ever for pharmaceutical companies. The 2016 drugs to
watch are likely to figure prominently in those discussions.”
—Richard Harrison, Chief Scientific Officer,
Thomson Reuters Intellectual Property & Science
19 http://www.pwc.com/gx/en/industries/pharmaceuticals-life-sciences/pharma-2020/pharma2020-virtual-rd-which-path-will-you-take.html
Pharmaceuticals experienced 4 percent year-over-year In the subsector for Heterocyclics, China again dominates
growth, with the most significant increase occurring in the top ten list in Asia with 80 percent of the organizations
inorganics, which jumped up by 190 percent, from 1,373 in that area. Heterocyclics are classic compounds that have
to 3,975 unique inventions for the period. Inorganics include atoms of at least two different elements as part of their
all non-carbon-based chemical compounds, featuring an rings. Cadila Healthcare of India also makes the top 10
array of metallic compounds as well as those that global innovator list within this area.
are synthesized in a chemical plant or lab.
Merck, Roche and Novartis are the world’s three most
Globally, China is the world’s leading region for innovative organizations overall in Heterocyclic volume,
Pharmaceutical innovation with 50 percent of the top 10 surpassing even China’s leading organizations in their
pharmaceutical companies residing there: University of R&D activity. Contrary to Asia, nearly all of the top 10
Jiangnan, University of Zhejiang, Foshan Saiweisi Pharma organizations in Heterocyclics in Europe and North America
Technology, University of Shanghai Jiaotong and University are from the private, corporate sector.
of Guangxi. The collabovation between the public and
private sectors is also clear in this industry, as all of The most influential top 10 scientific research organizations
China’s representatives are from academia. in pharmaceuticals have balanced representation across
China, Europe and North America, with China’s Tianjin
University taking the top spot.
“ Innovation flourishes when you take away the fear to fail, encourage people to take
controlled risks and create a healthy mix of diverse skills, cultures and experiences
within your workforce. Last but certainly not least, we constantly remind ourselves
that the customers in our care, the physicians, veterinarians, farmers and
consumers, ultimately determine what the true innovations are.”
— Dr. Marijn Dekkers, CEO, Bayer AG
The industry for those little chips, sensors and circuits that are the hardworking internal organs of
today’s electronic devices is going through a period of transformation. On the one side is massive
consumer demand for gadgets to be better, faster and more intelligent. The automotive and
IoT trends mentioned earlier in this paper are examples of how technology is becoming more
connected and being applied in new ways.
The flip side is lower manufacturer expectations for While China may be earmarked as the epicenter of
profitability and the push for more environmentally friendly Semiconductor growth for the near future, the global
solutions to power our future. Semiconductors have an Semiconductor space is evolving, moving to the next stage of
important role to play, however it will take the next its lifecycle, and is ripe for creative inventors to apply them in
generation of innovation to bring them back to their heyday. new ways.
“ Overall growth in the semiconductor space is slowing due to the slowdown in the
largest segment, which includes desktop PCs (personal computers), notebooks,
ultra-mobiles and tablets. The latest growth drivers, occupying smaller segments,
are now the mobile sector, automotive markets, sensors, light-emitting devices
and the advanced packaging industry. On the horizon, the next big growth driver
is the Internet of Things (IoT), and is expected to have a significant impact on the
advanced packaging. Meanwhile the Chinese government continues to invest
heavily in building its own semiconductor industry with the aim to catch up
technologically with the world’s leading firms by 2030. Will this one day
mean cheaper electronics worldwide and major advancements in innovation
as competition increases? Time and research/analysis will tell.”
—Jason Foster, Senior Semiconductor Analyst,
Quality Expert & Content Specialist, Thomson Reuters
20 http://www.investors.com/news/technology/elephant-intel-dances-but-12000-layoffs-could-signal-recession/
4%
%
% Subsectors 2015 2014
Change 27%
Semiconductor Materials
40% 54,907 56,827 -3%
and Processes 40%
Memories, Film and Hybrid
29% 40,920 35,220 16%
Circuits
27% Discrete Devices 37,771 38,571 -2%
Semiconductors hit a short circuit in the period ending Germany is the European leader in the Semiconductor
December 31, 2014 and showed a decline for the first time Materials & Processes subsector with 60 percent of the
in a number of years. Nevertheless, its path has been organizations in the world’s top 10. However, even with
somewhat corrected as it saw a 3 percent year-over-year Infineon at the top with 1,508 unique inventions over the
increase in activity, with Memories, Films & Hybrid Circuits five years, Samsung still comes out on top in terms of its
jumping 16 percent, the most of any subsector. The largest output with 463 percent more activity than Infineon. Even
segment: Semiconductor Materials and Processes, however, Japan’s Sharp, ranked tenth overall in Asia, is 63 percent
declined by 3 percent over the period. more active than the industry leader in Europe.
Asia continues to lead in the overall Semiconductor IBM takes the top US spot in this sub-category with 5,307
landscape, with Samsung Electronics taking the top unique inventions over the five years, but that is still 40
position and logging over 4,000 unique inventions in just percent fewer than Samsung.
one year. LG and SK Hynix (both from South Korea) also
rank in the top 10 overall. China, Japan and Taiwan all also In the scholarly research realm, Asia again leads with 70
place in the world’s top 10, with China taking four of the 10 percent of the top 10. China, Russia and Japan take the
slots, compared to just one each by Japan and Taiwan. IBM, top three spots globally. The EU and the US each have one
which previously held the number one position in this sector representative institution on the list of the most prolific
globally, is now eighth. Samsung has 328 percent more semiconductor research organizations.
inventions annually than IBM. Europe does not even place
in the top 10. Asia is the clear frontrunner in Semiconductor innovation
activity. Given the volume generated from that continent,
Samsung also dominates the subsector category for it’s evident that the region will be a force to reckon with and
Semiconductor Materials & Processes, with 45 percent the companies on this list are paving the way. The question
more volume than its nearest competitor, LG. Japan fares now becomes: how do these organizations morph to
well with 50 percent of the top innovators in this subsector. address the next stage of electronic and renewable needs.
REUTERS/DANIEL
2016 MUNOZ stateofinnovation.com
State of Innovation Telecommunications 73
TELECOMS TRIFECTA IS BASIS
FOR WHAT’S TO COME
The Telecommunications space is yet another that’s integral to the IoT phenomenon, providing
the network connectivity, equipment and devices essential for it to function. Collabovation
also plays a key role in the success of the sector, integrating Telecoms expertise with that of
automotive, appliance, fitness, wellbeing and other categories so partners on each side of the
equation can focus on what they respectively do best and leverage one another’s strengths.
The rub in all this is bandwidth. It’s currently somewhat The sky’s truly the limit when it comes to Telecoms, and that
limited and in order for Telecoms to really take off, more limit can and will be pushed as IoT becomes more pervasive,
spectrum is needed. The sector is being hit by a trifecta of customers demand fast and better accessibility, and new
sorts involving increased usage and demand for storage, technologies break old barriers. IoT, 5G, streaming services,
decreasing rates/pricing and the lack of a far-reaching the expansion of wearables and the shift to software-based
spectrum infrastructure. However, spectrum auctions and networking solutions will shape the future of Telecoms to
5G-technology development are poised to change this in the come. There’s ample growth opportunity and this is definitely
not-too-distant future. a space to pay attention to.
“ Since the dawn of telecommunications, Ericsson has put enormous time and
effort into collaborating with others to set the open standards that make global
communications and connections possible, with a firm belief that interoperability
and enabling end-to-end performance is key to leading innovation in the
information and telecom industry. To continue to advance technology, patents
play an active role through standardization and licensing and with one of the
strongest patent portfolios in mobile communications, Ericsson is a key driver
of open innovation. Without this open innovation, many of the advances in
mobile communications that we have come to rely on simply would not have
been possible.”
—Kasim Alfalahi, Senior Vice President & Chief Intellectual Property Officer, Ericsson
Telecommunications was up 3 percent year-over-year, Samsung truly dominates in Mobile Telephony with 228
despite three-quarters of its subsectors declining slightly percent more activity than the nearest European competitor
in activity from the last period. The subsector Telemetry (Ericsson) and 95 percent more activity than the nearest US
& Telecontrol, which covers measuring, transmitting and competitor (Qualcomm).
receiving apparatus, experienced a whopping 38 percent
jump from 18,437 unique inventions at year-end 2014 to The US leads with 90 percent of the most impactful
25,417 unique inventions at the close of 2015. All the other Telecommunications scholarly research organizations,
subsectors declined between 2–7 percent except for Data the top three of which are Rice University, University of
Transmission Networks, which was up 3 percent. California Berkeley and University of Texas Austin. The
only non-US institution in the top 10 is Switzerland’s
Like in the Semiconductor sector, Asian companies lead Federal Institute of Technology Zurich. It’s worth noting
the top 10 list in Telecommunications innovation with 80 that despite the fact that Asia leads in having the most top
percent of the representation. Samsung (South Korea) takes innovators in Telecommunications, the leading scholarly
the most innovative spot, followed by Huawei (China) and research organizations do not hail from there, but rather
LG (South Korea). In addition to the two companies from primarily come from the US. Microsoft is the only corporate
South Korea and three from China, there are three Japanese organization to make it to the list of most impactful
organizations and one each from Sweden and the US in the Telecommunications organizations.
leading 10.
Analysis was conducted by the Thomson Reuters PR & Thought Leadership team,
providers of expert insight and analysis for corporations, law firms and governments
around the world.
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