A study by the German Economic Institute (IW), commissioned by the Bertelsmann Foundation, has revealed that China owns more than 11,300 patents developed in Germany over the past 20 years. The report found that nearly one in three German-invented patents is now held by foreign entities. United States-based companies hold the largest share of these patents, with close to 33 percent, while Swiss firms own approximately 11 percent. The mechanical engineering sector has seen a notable rise in patent activity, increasing from around 3,300 applications in 2000 to 4,300 in 2022. China has been particularly active in acquiring patents in this sector, prompting concerns about the long-term control of strategic German technologies.
Oliver Koppel, an IW expert, stated that while German companies also own patents abroad, China's approach differs significantly. He noted that Beijing pursues targeted acquisitions in Western markets as part of a broader industrial strategy, while maintaining strict limitations on foreign access to its domestic market. "That is an imbalance," Koppel said. The report recommended that Europe strengthen its monitoring of where critical technologies are being transferred. It also highlighted a decline in Germany's global standing in research and development investment. In 2000, Germany ranked third worldwide in R&D spending, with investment levels about twice those of China. By 2021, Germany had dropped to sixth place. Over the same period, China increased its R&D spending approximately twentyfold, according to the study.
A German institute reports China's strategic acquisition of over 11,300 German patents while maintaining tight control over its own market. This imbalance challenges the idea of reciprocal innovation access in global trade. Germany's drop from third to sixth in R&D investment since 2000 reflects shifting technological power. If current trends hold, future high-tech leadership may rest where investment, not just acquisition, is prioritized.
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