Global Patent Balance Mechanical Engineering in a Strong Position

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A third of the national patent applications in Germany can be attributed to the technology field of machinery and equipment construction. This proportion is hardly as high in any other country as it is in Germany.

The machinery and equipment construction sector is a vital pillar of the German innovation system and accounts for a large portion of technological output, as documented in patents. In total, around one third of all patents in Germany in 2021 were attributed to the technology field of machinery and equipment construction. Worldwide, approximately 70,000 transnational patents in the technology field of machinery and equipment construction are filed annually by entrepreneurs and inventors. About 10,000 patents, representing around 15 percent of these patents, are filed by companies and inventors from Germany. In specific areas such as machine elements or machine tools, Germany's global share is even higher. These are key findings from a new short study by the IMPULS Foundation of the VDMA, prepared by the Fraunhofer Institute for System and Innovation Research ISI. (The data series covers the years 2005 to 2021, which are the most recent, fully available years due to global data availability and patent publication deadlines.)

Key Role in the Machinery Sector Ecosystem

The study shines a spotlight on not only the technological perspective but also the industry-specific perspective of patent applications, specifically the inventive spirit of machinery companies in an international comparison. These companies not only file patents in machinery technologies but also in other technological areas—totaling 15,000 worldwide in 2021. German companies accounted for about one third (around 5,000) of these applications. “No other country reaches this figure, which underscores the crucial role of our companies in the global machinery sector ecosystem,” says Hartmut Rauen, Deputy Executive Director of the VDMA. “Our strength is even more remarkable given that machinery and equipment companies receive very little state research funding, with only about 200 million euros per year recently.”

More 'Research for Industry' must be the guiding principle of the new federal government.

Hartmut Rauen, Deputy Executive Director of the VDMA

Dynamic Development Among Key Competitors

However, competition in international technology markets has significantly increased. In particular, machinery patent applications from China have more than doubled since the middle of the last decade (up 138 percent). South Korea's patent applications have also risen by just over a quarter since 2015 (up 26 percent). Meanwhile, patent applications from Germany have declined (down 12 percent), as have those from Japan (down 6 percent) and the USA (down 14 percent).

Increased Digitalization Opens New Opportunities

The IMPULS short study highlights approaches to inject new dynamism into patent development in Germany. "Seizing the opportunities of digitalization and developing new business models is a crucial component for maintaining and expanding the competitiveness of German mechanical engineering," says study director Dr. Rainer Frietsch from Fraunhofer ISI. This can be achieved with a stronger focus on technologies in the field of Industry 4.0 as well as computer-implemented inventions. Both in-house research activities and targeted collaborations can facilitate this. Additionally, small and medium-sized enterprises should be encouraged and empowered to patent their technologies. "A technology that has been copied once is certainly gone if it has not been patented. Patents stand out as particularly strong among all protection instruments," emphasizes Dr. Frietsch.

More "Research for Industry" as a Guiding Principle for the New Federal Government

Patents are a result of research efforts. They are a critical factor in securing the international competitiveness of an economy and in safeguarding export markets. "More 'Research for Industry' must therefore become the guiding principle of the new federal government," adds Hartmut Rauen. "The levers are clear: further expansion and optimization of research grants, as well as strengthening industrial joint research and production technologies, which serve as the link between research, innovation, and patents," emphasizes the Deputy Executive Director of the VDMA.