The landscape of global intellectual property rights (IPR) has undergone a significant transformation in the aftermath of the global financial crisis. This shift is marked by a surge in World Intellectual Property Rights applications, with patents and industrial designs experiencing a Compound Annual Growth Rate (CAGR) of 60% over the 9 years ending in 2022. This analysis, based on SBI Research 3i (India Incubating Innovations), presents an overview of India's patent landscape and how it indicates the growth of a huge knowledge-driven economy worldwide. The research is a collaboration between the Economic Research Department at the State Bank of India in Mumbai, and the Office of the Controller General of Patents, Designs & Trade Marks, which is part of the Department of Promotion of Industry and Internal Trade within the Ministry of Commerce and Industry of the Government of India.
In the current decade (2014-2023), patent publications have risen by 44% compared to the previous decade (2004-2013). The average number of patents published per day has risen from 89 to 127, reaching a peak of 247 patent applications filed per day in 2023. India, the world's fifth-largest economy, has emerged as the sixth-largest country regarding the number of patents registered in 2022, growing at a rate of 25.2%, which outpaced major economies, including China.
Indian residents have played a significant role in this surge, experiencing a noteworthy 98% growth in patents over the 9 years ending in 2022. Notably, non-residents from around the world have also seen a doubling of patent growth in India, reflecting the efficiency and responsiveness of the Indian IPR regime. The share of patents published by Indian residents has increased from 20% before 2014 to 32% in recent years.
India's persistent efforts to strengthen the IPR regime have yielded positive results, with a significant reduction in average pendency for patent examination. The average pendency has been significantly reduced to 120 days in 2022, marking the fastest improvement among major countries in the majority subject speciality. The clearing of a backlog in patent applications has led to expedited patent grants, with fresh applications now being granted in only 22 months in the post-pandemic period as of December 2023.
The data indicates a shift in focus towards emerging sectors, with Electronics, Electrical, Physics, Biotechnology, Civil, and Metallurgy identified as potential areas for IP creation and innovation in India. Innovations in new fields like Computers, Communications, Biomedicals, and Polymers are gaining significant traction, fueled by India's digital initiatives.
India's rising influence in the global IPR landscape is evident as it surpasses Canada, Australia, France, and Germany in patent filings. The share of inventions by Indians has increased from 16.3% in the decade of 2004-2013 to 37.6% in the 2014-2023 period. Moreover, India's transparent and IP-friendly environment is reflected in the declining share of the USA, Japan, Germany, France, and the UK in Indian markets concerning joint inventions.
Uttar Pradesh, Punjab, Telangana, Rajasthan, and Uttarakhand are emerging as leaders in innovation, while Gujarat, Haryana, Odisha, Andaman and Nicobar Islands, Chhattisgarh, Jammu and Kashmir, Pondicherry, and Himachal Pradesh are increasingly contributing to India's innovation growth.
In the first decade (2004-13), Indian companies held a 50% share in innovations, individuals had a 35% share, and educational and scientific institutions lagged with a 15% share. However, in the second decade (2014-2023), there has been a remarkable shift with educational and scientific institutions doubling their share to 31%, aligning with trends observed in developed countries. This indicates a growing innovation culture within these institutions.
Of the total patents published in India until December 2023, 32% (or 2.3 lakh) were filed by Indian applicants, followed by applicants from the US and Japan. The top 10 countries accounted for 87% of the total patents published in India. Mechanical innovation emerged as the leading field with a share of around 20%, followed by Chemistry with a share of around 16%.
India's remarkable ascent in the global patent landscape is driven by a substantial surge in patent applications, particularly in emerging sectors like Electronics, Biotechnology, and Digital Initiatives. SBI Research presents a comprehensive view of India's evolution as a powerhouse in the global knowledge-based economy. India has surpassed other major economies in patent filings and is positioned as a powerhouse in the knowledge-based economy. The reduction in patent examination pendency to 120 days in 2022 exemplifies the efficiency of India's intellectual property rights (IPR) regime. Indian residents have played a pivotal role, experiencing an impressive growth in patents.
The changing dynamics in joint inventions highlight India's growing influence in the global innovation landscape. Regional leaders like Uttar Pradesh and Telangana are contributing significantly to India's innovation growth. The transformation in the role of educational and scientific institutions, doubling their share in innovations, indicates a burgeoning innovation culture. SBI Research's analysis unveils India's potential to lead the world in innovation, emphasising the imperative for continued support and enhancement of the country's IPR regime to sustain this momentum. India's patent revolution is a testament to its unwavering commitment to carving its niche in the global innovation landscape.