CLARIVATE ANALYTICS — 2016 TOP 100 CHINESE INNOVATORS · 2016 lays out the principles of innovation, coordination, green development, and open collaboration. ... We are pleased

CLARIVATE ANALYTICS

— 2016 TOP 100 CHINESE INNOVATORSDECEMBER 2016

“In the implementation of an innovation-driven development strategy, the most fundamental aspect is to enhance the capability of independent innovation”

— Xi Jinping

— Linda Guo, Managing Director, China Clarivate Analytics

Innovation accelerates China’s economic transformation and development2016 is a year of change for Chinese enterprises -- after experiencing rapid growth for over 30 years, China’s economy is reaching a “New Normal” and making a paradigm shift from “Made in China” to “Created in China”. The 13th Five-Year Plan (FYP) released by the Chinese government in March 2016 lays out the principles of innovation, coordination, green development, and open collaboration. Innovation is further emphasized in the “National Strategic Framework for Innovation-Driven Development” which states the government’s intent to “strengthen the main body of innovation and lead innovation development” and foster world-class innovative enterprises. Innovation is clearly a key to China’s future development.

Chinese enterprises used to struggle during overseas expansion due to lack of innovation capability. After years of great efforts, they are finally able to demonstrate to the world their determination and ability to create value as innovators. We believe China’s future is inextricably linked with the innovation of its enterprises. Companies who choose to invest in R&D, protect their inventions through patents (locally and globally) and are recognized by others as innovators are those who are paving the way for China’s future.

Clarivate Analytics (formerly the Intellectual Property and Science business of Thomson Reuters) has been focusing on the development of enterprise innovation worldwide for decades. China, as the world’s second largest economy, remains a major focus for us. We use the power of data analysis in an unbiased, scientific manner to identify and study the leading innovators amongst Chinese enterprises, showcase their glorious achievements, and help them find room for improving their innovation processes. We are pleased to present our findings in this inaugural 2016 Top 100 Chinese Innovators report to the global community. Do keep an eye out for our Top 100 Global Innovators report which we hope will expand the conversation to innovation from a global perspective. We hope you find our reports insightful and helpful!

A Message from the Managing Director of China

Table of Contents

Introduction .....................................................................................................................................................................1

Methodology ..................................................................................................................................................................3

Key Findings ...................................................................................................................................................................4

Introducing The Clarivate Analytics 2016 Top 100 Chinese Innovators ......................................................................6

Industry Analysis ........................................................................................................................................................... 11

Geographic Breakdown ............................................................................................................................................... 14

Innovative Corporations ............................................................................................................................................... 18

Solutions for Innovation Success ............................................................................................................................... 37

WHO WE ARE ...............................................................................................................................................................38

2016 TOP 100 CHINESE INNOVATORS PAGE 1

The 13th FYP approved in March 2016 lays out principles of innovation, coordination, green development, opening up and sharing. Innovation is further emphasized in the “National Strategic Framework for Innovation-Driven Development” published in May 2016 by the CPC Central Committee and the State Council, stating clearly that it is necessary to “strengthen the main body of innovation and lead innovation development” and foster world-class innovative enterprises. The framework encourages industry leaders to build high-level research and development (R&D) institutions, form a comprhensive R&D system, and gather high-end innovative elites. China should guide the leading enterprises to unite small and medium-sized enterprises and scientific research institutions to systematically build the innovation chain, to provide an overall solution for innovative industrial technology. There is also a need to cultivate a number of innovative enterprises, which have outstanding key technology capability and strong integrated innovation ability, and could lead the development of key industries. China will strive to have a group of enterprises which feature in the world’s top 100 innovative enterprises ranking.

Innovation has been a key to China’s success. The Chinese government has encouraged the country to embrace innovation through a series of Five-Year Plans (FYP). The recently completed 12th FYP laid out a number of goals aiming to continue the transition from a manufacturing to a knowledge economy. Heavy investment in science and technology education and R&D, further development of China’s intellectual property rights system, tax breaks and monetary incentives to increase indigenous innovation have had notable results. R&D spending as a proportion of GDP has risen to 2.1% in 2015 which compares favorably with global standards. In just over 30 years since the country’s Patent Law took effect in 1985, China has now become the most prolific source of invention patent applications in the world. Over the last ten years, an increasing proportion of those originate domestically.

Introduction

We believe the future course for China is inextricably linked with the innovation of its enterprises. Companies that invest in R&D, protect their inventions through patents (locally and globally) and are recognized by others as having founding technology are those who are paving the way for the future. Our aim, therefore, is to identify these innovators, using the power of data analysis in an unbiased and scientific way. For the first time, we are pleased to present our findings as the 2016 Top 100 Chinese Innovators report.

The 2016 Top 100 Chinese Innovators report aims to identify the most innovative companies in China. These companies show strong commitment to progressing innovation globally, to the protection of ideas and to the commercialization of inventions. They have made the world a better place using the power of innovation. Salute to the great innovators of our era!

Since the late 1970’s, China has been on a path of economic reform that has seen it transform from a developing country to the second largest global economy after the US with nominal Gross Domestic Product (GDP) of $10.87 trillion in 2015.


SUCCESS

The success metric covers the ratio of inventions protected with granted to patents inventions described in published applications over the most recent five years. Not all patent applications pass through the examination process and are granted, and granted applications are by definition novel, non-obvious and useful. Therefore, we use success rate to measure the quality of innovation.

GLOBALIZATION

Globalization is measured by the ratio of inventions filed for protection in countries outside China versus the total volume for that period. It represents the value an organization places on an invention by protecting it across the major world markets, the premise being that inventions protected in jurisdictions outside China are deemed to be of significant global value to the organization.

VOLUME

The volume of inventions is the first metric considered. An enterprise would need to own more than a certain number of inventions to be nominated as a Top 100 Chinese Innovator. The total number of inventions owned by an enterprise is calculated based on the number of patent families; in other words, all patents in one Derwent patent family altogether are considered one invention. In Derwent World Patents IndexTM, a new invention is called a “basic patent”, while all later published patents for the same invention issued in other countries are called “Equivalents” within the same patent family. By using the number of inventions instead of number of patents, we can more accurately measure innovation output, avoiding duplication from multiple applications in multiple countries for one invention.

Methodology

INFLUENCE

Finally, influence is the downstream impact of an invention, measured by how many times it is cited by other organizations. Via the Derwent Patent Citation Index, citations to an organization’s patents are counted over the most recent five years, excluding self-citations.

DATA SOURCE AND ANALYSIS TOOLS

Derwent World Patents Index (DWPI) and Derwent Patent Citations Index (DPCI) by Clarivate Analytics serve as the main data sources of this report. Analysis tools used include Thomson InnovationTM and Thomson Data AnalyzerTM. This report is based on patents published between 2011 and 2015 covered by DWPI and DPCI.

This report covers companies in mainland China, not including Hong Kong, Macao and Taiwan.

The 2016 Top 100 Chinese Innovators methodology analyzes patent and citation data for four criteria: volume, success, globalization and influence. The scores for each of these metrics are merged to produce a combined score for each organization analyzed.

2016 TOP 100 CHINESE INNOVATORSPAGE 4

In contrast, compared to global innovation trends, China did not perform strongly in the Pharmaceuticals sector. Last year, seven global pharmaceutical corporations made the 2015 Thomson Reuters Top 100 Global Innovators list. However, not a single pharmaceutical firm appears on the 2016 Chinese Top 100 list.

Globalization analysis shows clearly that Chinese companies are, in general, focusing more on protecting innovation in the domestic market with the average size of a patent family being only slightly above one patent filing per family. Notable exceptions to this include Huawei with filings across 16 countries globally and Alibaba with filings across 11 international regions. From the globalization perspective, Communications Equipment and Media Internet perform considerably better than other industries: four of the five Media Internet companies and three Communications companies are very strong in the Globalization metric.

This year’s Chinese Top 100 are from 23 different industries, ranging from traditional industries such as Primary Metals and Electricity, to emerging high tech industries such as Telecom Services and Media Internet. The Automotive sector takes top spot with 10 companies, followed by Domestic Appliances and Electric Power Generation & Supply, 8 companies from each.

The Chinese Top 100 originate from a relatively concentrated range of locations in China. The headquarters for the 100 organizations on the list are in 15 of the 31 provinces of Mainland China, mostly in the eastern region. Beijing is unquestionably the innovation hub of the country with 43 companies on the list. The next most innovative province is Guangdong with 21 corporations. Shanghai, Shandong, Jiangsu, Zhejiang and Anhui all perform strongly.

The Chinese Top 100 overall shows a good mix of state-owned enterprises and private enterprises, but Media Internet industry is an especially good demonstration of innovation and strengths of private enterprises: all five Media Internet companies that make the list are private. These are the industry giants Baidu, Alibaba and Tencent (collectively known as “BAT”), a young player Xiaomi, and 360.com, dedicated to network security.

Key Findings

Influence metric measures the external influence of an organization’s innovation. The best performers by the influence metric are from a wide variety of industries from Computer Software, Domestic Appliances, Automotive, Telecom Services and Communication Equipment, to traditional industries such as Construction and Petroleum & Chemical Products. Yet no clear trend emerges with the presence of organizations from 14 industry sectors in the Top 20 list.

We hope this report will help shed light on the rapidly evolving innovation taking place in China and the impact that is having on driving development towards building the “moderately well-off society” of the 13th Five-Year Plan.

The organizations comprising the list of 2016 Top 100 Chinese Innovators (“Chinese Top 100”) represent the vanguard of innovation in China who are blazing the trail towards the future and laying the foundations for the future prosperity of the country.


Introducing The Clarivate Analytics 2016 Top 100 Chinese InnovatorsTable 1: Clarivate Analytics Top 100 Chinese Innovators in 2016 listed in alphabetical order by English organization name.

Organization Province/City Industry

AAC Technologies Holdings Inc Guangdong Consumer Electronics

Alibaba Group Holding Limited Zhejiang Media Internet

Aluminum Corporation of China Limited Beijing Primary Metals

Anhui Jianghuai Automobile Co.,Ltd Anhui Automotive

Anshan Iron & Steel Group Corporation Liaoning Primary Metals

Aviation Industry Corporation of China Beijing Aerospace

Baidu Beijing Media Internet

Baosteel Shanghai Primary Metals

Beijing Automotive Group Co., Ltd. Beijing Automotive

Beijing Electronics Holding Co., Ltd. Beijing Electronic Components

Broad-ocean Guangdong Electrical Equipment

BYD Guangdong Automotive

Chery Holdings Anhui Automotive

China Aerospace Science & Industry Corp. Beijing Aerospace

China Aerospace Science and Technology Corporation Beijing Aerospace

CHINA BAK BATTERY, INC. Guangdong Consumer Electronics

China Electronics Corporation Beijing Electronic Components

China Electronics Technology Group Corporation Beijing Communications Equipment

China General Nuclear Power Group Guangdong Electric Power Generation & Supply

China Guodian Corporation Beijing Electrical Equipment

China International Marine Containers (Group) Co., Ltd. Guangdong Other Transport Equipment

China Lesso Group Holdings Limited Guangdong Non-metallic Materials

China Metallurgical Group Corporation Beijing Primary Metals



China Mobile Beijing Telecom Services

China National Building Materials Group Corporation Beijing Non-metallic Materials

China National Chemical Corporation (ChemChina) Beijing Petroleum & Chemical Products

China National Machinery Industry Corporation Beijing General and Special-purpose Machinery

China National Materials Group Corporation Ltd. Beijing Non-metallic Materials

China National Nuclear Corporation Beijing Electric Power Generation & Supply

China National Offshore Oil Corporation Beijing Petroleum & Chemical Products

China National Petroleum Corporation(CNPC) Beijing Petroleum & Chemical Products

China North Industries Group Corporation Beijing General and Special-purpose Machinery

China Railway Construction Corporation Beijing Construction

China Railway Engineering Corporation Beijing Construction

China Resources (Holdings) Co., Ltd Beijing General

China Shipbuilding Industry Corporation Beijing Other Transport Equipment

China South Industries Group Corporation Beijing General and Special-purpose Machinery

China Southern Power Grid Co., Ltd. Guangdong Electric Power Generation & Supply

China State Construction Engineering Corporation Beijing Construction

China XD Group Shaanxi Electrical Equipment

CHINT Group Corp. Zhejiang Auxiliary Power Equipment

Chongqing Lifan Holdings Co., Ltd Chongqing Automotive

Chongqing Runze Pharmaceutical Co., Ltd Chongqing Medical Devices

Commercial Aircraft Corporation of China, Ltd. Shanghai Aerospace

Coolpad Group Limited Guangdong Consumer Electronics

CRRC Corporation Limited Beijing Other Transport Equipment

Datang Telecom Technology & Industry Beijing Communications Equipment

Dongfeng Motor Corporation Hubei Automotive

Founder Beijing Computer Software

Geely Zhejiang Automotive

General Research Institute For Nonferrous Metals Beijing Primary Metals



Goertek Inc. Shandong Consumer Electronics

Goodbaby Jiangsu Consumer Goods

Great Wall Motors Hebei Automotive

Gree Guangdong Domestic Appliances

Guangzhou Radio Group Guangdong Communications Equipment

Haier Shandong Domestic Appliances

Haiyangwang Lighting Technology Co Ltd Guangdong Auxiliary Power Equipment

Hanergy Holding Group Ltd. Beijing Electric Power Generation & Supply

Hanvon Technology Co.,Ltd Beijing Computer Software

Hisense Shandong Domestic Appliances

Huahong Group Shanghai Electronic Components

Huawei Guangdong Communications Equipment

INSPUR Shandong Computer Hardware

KingClean Electric Co.,ltd Jiangsu Domestic Appliances

Kingfa Sci. & Tech. Co., Ltd. Guangdong Non-metallic Materials

Konka Group Co.,Ltd Guangdong Domestic Appliances

Legend Holdings Beijing Computer Hardware

Mesnac Co., Ltd. Shandong Computer Software

MIDEA Guangdong Domestic Appliances

O-FILM Guangdong Electronic Components

Opple Shanghai Auxiliary Power Equipment

Print-Rite Holdings Limited. Guangdong Consumer Goods

Qihoo 360 Technology Co.,Ltd Beijing Media Internet

SANY Hunan General and Special-purpose Machinery

Semiconductor Manufacturing International Corporation (SMIC) Shanghai Electronic Components

Shandong Heavy Industry Group Shandong General and Special-purpose Machinery

Shanghai Automotive Industry Corporation (Group) Shanghai Automotive

Shanghai Electric Shanghai Electrical Equipment



Shanghai Huali Microelectronics Corporation Shanghai Electronic Components

Shenhua Group Beijing Electric Power Generation & Supply

Shougang Group Beijing Primary Metals

Sichuan Changhong Electronics Holding Group Co., Ltd Sichuan Domestic Appliances

SINOCHEM Beijing Petroleum & Chemical Products

Sinopec Beijing Petroleum & Chemical Products

State Grid Corporation of China Beijing Electric Power Generation & Supply

State Power Investment Corporation Beijing Electric Power Generation & Supply

Sunny Optical Technology (Group) Company Limited Zhejiang Instruments and Devices

TCL Guangdong Domestic Appliances

Tencent Guangdong Media Internet

Trina Solar Jiangsu Electric Power Generation & Supply

Tsinghua Tongfang Beijing Computer Software

Tsinghua Unigroup Beijing Computer Software

Wuhan Iron and Steel (Group) Corp. Hubei Primary Metals

Wuhan Research Institute of Post and Telecommunications Hubei Communications Equipment

XIAOMI TECHNOLOGY CO., LTD. Beijing Media Internet

Xuzhou Construction Machinery Group Co.,Ltd Jiangsu General and Special-purpose Machinery

Yutong Henan Automotive

Zoomlion Heavy Industry Science and Technology Hunan General and Special-purpose Machinery

ZTE Guangdong Communications Equipment


Industry Analysis

2016 Chinese Top 100 are from 23 different industries. The Automotive sector takes top spot, followed by Domestic Appliances and Electric Power Generation & Supply. Besides, Primary Metals, General and Special-purpose Machinery, Communications Equipment, Electronic Components, Media Internet, Computer Software and Petroleum & Chemical Products each have 5 companies on the list.

Innovation is made in flexible and varied ways. In China, the Aerospace industry is rapidly becoming a global leader from a small base - Commercial Aircraft Corporation of China and China Aerospace Science and Technology Corporation (CASC) are independently developing world-leading aircrafts and proprietary technologies; university-founded companies such as Tsinghua Tongfang, Tsinghua Unigroup and Founder are unquestionable leaders in China’s Computer Software Industry; in the highly competitive Domestic Appliances, Media Internet and Automotive industries, mergers and acquisitions has become one of the most important ways to obtain technologies, talents, market shares and eventually innovation capabilities; big, multi-industry companies like China Resources (Holdings) Co., Ltd take part in technological innovation in a very low-key way – they are the capital behind the scenes.

2016 Chinese Top 100 are from a wide variety of industries, ranging from traditional industries such as Primary Metals and Electricity, to emerging high tech industries such as Telecom Services and Media Internet. Specifically, Automotive, Domestic Appliances and Electric Power Generation & Supply are in the leading positions.

Figure 1: Industry Breakdown of Top 100 Chinese Innovators in 2016

Industry Breakdown of Top 100 Chinese Innovators in 2016

Motor Vehicles

Domestic Appliances

Electric Power Generation & Supply

General and Special-purpose Machinery

Primary Metals

Communication Equipment

Electronic Components

Computer Software

Media Internet

Petroleum & Chemical Products

Aerospace

Consumer Electronics

Electrical Equipment

Non-metallic Materials

Auxiliary Power Equipment

Construction

Other Transport Equipment

Computer Hardware

Consumer Goods

General

Instruments & Devices

Medical Devices

Telecom Services

10

8

8

7

7

6

6

5

5

5

4

4

4

4

1

1

1

1

3

3

3

2

2

Automotive


Domestic Appliances

Primary Metals


Communications Equipment


Computer Software


Computer Hardware

Consumer Goods

General

Telecom Services

Instruments and Devices

Medical Devices


Media Internet



Aerospace


Construction



Motor Vehicles

Domestic Appliances



Primary Metals

Communication Equipment


Computer Software

Media Internet


Aerospace





Construction


Computer Hardware

Consumer Goods

General

Instruments & Devices

Medical Devices

Telecom Services

10

8

8

7

7

6

6

5

5

5

4

4

4

4

1

1

1

1

3

3

3

2

2

Automotive


Domestic Appliances

Primary Metals


Communications Equipment


Computer Software


Computer Hardware

Consumer Goods

General

Telecom Services

Instruments and Devices

Medical Devices


Media Internet



Aerospace


Construction


10

8

8

7

7

665

5

5

4

4

4

4

33

32 2 1 1 1 1


AUTOMOTIVE

In 2016, ten automakers are ranked as Chinese Top 100 which makes Automotive the most innovative industry sector. These most innovative automakers include both large state-owned-enterprises (SOEs) like Dongfeng Motor Corporation and Beijing Automotive Group Co., Ltd., and rising private enterprises like BYD and Great Wall Motors. In terms of technological areas, these companies put R&D efforts into both the traditional areas of family cars, commercial vehicles and engineering vehicles, as well as technologies for the future like green vehicles and self-driving. Many of the inventions fall into these areas in recent years.

Moreover, besides the fierce competition among traditional automakers, international Internet giants have made bold moves to establish a foothold in the Automotive industry. Internet and mobile communication technologies are integrating with traditional automotive technology at an unprecedented rate. Chinese Internet companies also show strong interests in this area, and are trying to become part of the game via in-house R&D, direct investment or partnership.

Despite their growing innovation capability, Chinese automakers still lag behind world-class giants in key technologies like engine and chassis design. In recent years, Chinese automakers have often been sued for IP infringements. China is expected to surpass the U.S. to become the world’s largest automotive market in near future – Chinese automakers need to be more prepared.

DOMESTIC APPLIANCES

Domestic Appliances has eight corporations on the list – Midea, Haier, Gree, TCL, Hisense, Sichuan Changhong Electronics Holding Group Co., Ltd, Konka Group Co., Ltd, and KingClean Electric Co., Ltd. Four of these innovators are from Guangdong, and the rest from Shandong and Jiangsu. In terms of product line, four corporations have television as their main product, while others specialize in air-conditioners, washing machines, as well as refrigerators. The list is completed by KingClean Electric Co., Ltd dedicated to innovative vacuum and air cleaning products. The variety of product lines and technology fields of these innovators illustrates the vibrant innovation across the domestic appliances industry in China.

Despite slim profit margins overall, domestic appliances manufacturers have decided to make heavy investments in R&D as a key to transformation. On the one hand, they see standardization of Chinese innovative technologies into international standards as a long-term strategic move. In 2011, they made a breakthrough - International Telecommunication Union (ITU) in Geneva recognized the Chinese-developed Digital Terrestrial Multimedia Broadcast (DTMB) specification as an international standard. That has set a role model for Chinese corporations to continue innovating, standardizing and eventually promoting Chinese technology achievements all over the world. On the other hand, Chinese domestic appliances manufacturers are accelerating their overseas expansion via mergers & acquisition. For example, Midea has already initiated three overseas acquisitions in Japan, Germany and Italy since the beginning of 2016.

Science and technology is drastically changing the way we define and use domestic appliances. Chinese enterprises are moving towards the next-generation smart domestic appliances along the development of Internet and data technology. Amid the fierce competition, old-fashioned companies like Sharp and Hitachi are receding and new players such as Google, Baidu and LeTV are joining the game. Chinese domestic appliances manufacturers have apparently seen their R&D investment paying off: according to the Thomson Reuters 2016 State of Innovation report, the top three innovators in Domestic Appliances industry, Midea, Gree and Haier are all from China.

ELECTRIC POWER GENERATION & SUPPLY

Eight corporations from Electrical Equipment and Electric Power Generation & Supply industry have made it to the list. Due to the oligopoly nature of China’s electric power industry, most of these corporations are state-owned-enterprises (SOEs) with advantages in capital and human resources, resulting in high innovation capability. The two private enterprises, Trina Solar and Hanergy Holding Group Ltd., are also rising stars. The innovation of Chinese electric power corporations is echoed by their strong performance in global markets: in September 2016, the British government signed a deal with China General Nuclear and Électricité de France, a French electric utility company, for the Hinkley Point Nuclear Project. Another example is that Trina Solar has been the world’s No. 1 photovoltaic module manufacturer for two years in a row since 2014.


The revolution of electric power is the revolution of energy use. From the thermal power company Shenhua Group, to nuclear power groups representing high energy efficiency and high technology such as China General Nuclear Power Group, and further to clean energy companies such as Trina Solar and Hanergy Holding Group, this list is an aggregation of Chinese key players, representing different phases along the route of technology development of electric power industry.

Clean energy up, coal down. It is very clear where the global power industry is going. Nuclear power, wind power and solar power have posed new challenges in electricity storage, transmission and distribution technologies. We expect to see even more exciting, disruptive technology advances in this industry soon.

COMMUNICATIONS EQUIPMENT

The six innovation-driven corporations from Communications Equipment industry range from leading private enterprises like Huawei, to SOE innovators such as ZTE, Datang Telecom and Guangzhou Radio Group. Also in this sector are Wuhan Research Institute of Post and Telecommunications, an industry leader founded by a scientific research institute, and China Electronics Technology Group Corporation, an innovator that operates 18 national key labs. Communications Equipment companies in China are rapidly getting closer to international leading peers, and even surpassing them in some areas. Huawei was ranked as Thomson Reuters Top 100 Global Innovator in 2014 as the sole company from China mainland. We believe the innovation of China’s Communication Equipment industry will drive China’s further development of emerging technologies like the Internet of Things and Cloud Computing.

MEDIA INTERNET

Five Media Internet companies made the list, all of them private enterprises. There are industry giants Baidu, Alibaba and Tencent (collectively known as “BAT”), 360.com, which is dedicated to network security, and a young player Xiaomi. It is noteworthy that, due to certain requirements of Chinese patent law on Internet-related patents, it is difficult to obtain grant for patents involving business methods, so Chinese Internet innovators do not feature highly in terms of total number of patents. However, regarding the specific indicator of globalization, Alibaba, Baidu, 360.com and Tencent are all leading companies across China. The Internet has been the bridge for the world’s communication and made the world smaller. The innovative technologies by Chinese Internet companies must impact their Silicon Valley peers too. We expect the future innovation from Chinese Media Internet companies to bring the world more inspiration.

OTHERS

Development of Primary Metals industries is highly correlated to economic growth. Demand for metals has been declining for a considerable amount of time, not only in China, but all over the world. How can companies in this industry survive? The answer may lie in innovation and transformation. Among 2016 Chinese Top 100 there are four Primary Metals companies, namely Baosteel, Wuhan Iron and Steel (Group) Corp., Anshan Iron & Steel Group Corporation and Shougang Group1. Their success in innovation brings precious experience to the whole industry.

Not a single pharmaceutical firm appears on the 2016 Chinese Top 100 list. As a comparison, there are pharmaceutical companies in the Thomson Reuters Top 100 Global Innovators every year over the past five years. Last year, 7 pharmaceutical corporations made the Top 100 Global Innovators list. It seems that Chinese pharmaceutical companies are less innovative than both their global and domestic peers in other industries. In the future, we hope that investment in innovation will keep growing in this area and more innovative pharmaceutical Chinese corporations will emerge.

1 A merger plan between Wuhan Iron and Steel (Group) Corp. and Baosteel was announced in September 2016 and was recently approved by government authorities. However, no such condition existed during the period covered by the data used in the report so the two entities were viewed as separate.


Geographic Breakdown

The 2016 Chinese Top 100 are from 15 provinces (by Headquarter location). Beijing is the unquestionable innovation hub of the country with 43 companies on the list. The 2nd innovative province is Guangdong, which has 21 corporations on the list. Shanghai and Shandong constitute the third tier, with 8 and 6 top innovators respectively. The remaining provinces are Jiangsu, Zhejiang, Hubei, Hunan, Anhui, Henan, Liaoning, Sichuan, Chongqing, Shaanxi and Hebei, with less than 5 companies from each area. 16 Chinese provinces are absent from the list. Chinese innovative corporations are concentrated in the eastern region of the country, with dominance of North

China, East China and Mid-south China. From the coastal areas to inland, from east to west, the number of innovative companies declines. This trait aligns strongly with China’s economic landscape. The elements essential to innovation include capital, talent and information, all in correspondence with the economic development of a region. Therefore, it is easy to see that more developed regions boast stronger innovation capability and greater achievements.

NORTH CHINA (BEIJING AND HEBEI)

Beijing plays the role of forerunner in innovation in Mainland China. A total of 43 companies on the list are from this

city. The 43 companies cover 17 out of the 23 industry sectors. Nonetheless, they are absent in the Domestic Appliances, Consumer Electronics, Auxiliary Power Equipment, Consumer Goods, Medical Devices and Instruments & Devices industries.

As the national center of political, cultural, international exchange and technological innovation, Beijing gathers a large number of central SOEs’ headquarters and R&D centers. SOEs that made the 2016 list are high-tech firms dedicated to Communications Equipment, Aerospace and Electronic Components as well as those from traditional sectors such as Petroleum & Chemical Products, Electric Power, Construction, Machinery,


Beijing

Guangdong

Shanghai

Shandong

Jiangsu

Zhejiang

Hubei

Anhui

Hunan

Chongqing

Hebei

Henan

Liaoning

Shaanxi

Sichuan

21

4

4

38

6

2

2

2

1

1

1

1

1

43

Figure 2: Geographical Breakdown of Top 100 Chinese Innovators in 2016


Transportation, Metallic and Non-metallic Materials. The list also sees many private enterprises from Computer Software, Computer Hardware and Media Internet industries, reflecting the vigorous development of private enterprises in such vital new-tech fields.

Looking back to the Beijing’s 12th Five-Year Plan, the municipal government has fully implemented the “Science & Technology Beijing” strategy. By utilizing the Zhong Guan Cun National Demonstration Zone for Independent Innovation, the government provided institutional and policy guidance for core elements of innovation such as talent, capital and technology, and created the mechanism to stimulate and service innovation. Under the city’s 12th Five-Year Plan, key objectives related to innovation were explicitly put forward, namely: R&D expenditure to be greater than 5.5% of the city’s GDP, 8 invention and patents grants per 10,000 people, and annual transaction value in technology to reach 180 billion RMB. The evidence suggests that these guiding measures have gone a long way towards fueling innovation among enterprises located in Beijing.

In terms of regional coordinated development, one company from Hebei made the list of Chinese Top 100. As a private enterprise, Great Wall Motors believes in “over-investment” in R&D. R&D investment of the company has increased from 63 million RMB in 2011 to over 2.76 billion RMB in 2015. Such consistent R&D investment has laid a solid foundation for its strong innovation.

Tianjin, Shanxi and Neimenggu in the North China area are absent from the list.

EAST CHINA (SHANGHAI, JIANGSU, ZHEJIANG, ANHUI AND SHANDONG)

The 8 Shanghai-based innovative corporations on the list are Baosteel, Shanghai Electric, Huahong Group, Semiconductor Manufacturing International Corporation, Shanghai Automotive Industry Corporation (Group), Opple, Shanghai Huali Microelectronics Corporation and Commercial Aircraft Corporation of China, Ltd., mostly state-

owned enterprises (SOEs). In terms of industry breakdown, there are 3 enterprises from the electronic components industry, which mirrors Shanghai’s edge in innovation in this sector. During the past 20 years, Shanghai has become China’s most successful area in developing the Integrated Circuit (IC) sector. During the 12th FYP, Shanghai developed a technology roadmap for a new generation of Information and Communications Technology manufacturing, and specifically named IC as a key area. In addition to favorable policies, the Shanghai government provides financial support to companies in this sector every year. Such support has greatly accelerated the development and maturation of the IC manufacturing sector in Shanghai.

The 6 Shandong-based firms on the list are Haier, HiSense, INSPUR, Mesnac Co., Ltd., Goertek and Shandong Heavy Industry Group. They cover the fields of Domestic Appliances, Computer Hardware, Computer Software, and Consumer Electronics as well as General and Special-purpose Machinery. Judging by the industry structure of these enterprises, as far as innovation is concerned, Shandong is strong in Domestic Appliances and emerging Information Technologies.

4 enterprises on the list are from Jiangsu: Goodbaby, KingClean Electric Co., Ltd, Trina Solar and Xuzhou Construction Machinery Group Co., Ltd. The fact that these firms are in four different industries speaks to the diversity of Jiangsu’s innovation and development. Note that although the total volume of patent applications from Jiangsu is the highest across China, its innovators could still improve on the globalization metric.

Zhejiang’s Alibaba, CHINT Group Corp., Geely and Sunny Optical Technology (Group) Company Limited are its top innovators. Alibaba, headquartered in Zhejiang, is an outstanding industry leader featuring consistent innovation. It has shaped an internet-based eco-system in Zhejiang and greatly stimulate the economic development of the province. Zhejiang-based Hikvision is grouped into its parent company China Electronics Technology Group Corporation in this report.

Both Anhui companies on the Chinese Top 100 list, Chery Holdings and Anhui Jianghuai Automobile Co.,Ltd, are from Automotive industry.

Jiangxi and Fujian from East China are absent from the list.

CENTRAL AND SOUTH CHINA (GUANGDONG, HUBEI, HUNAN AND HENAN)

A total of 21 companies from Guangdong made the list, covering 12 industries. Besides Domestic Appliances which has always been Guangdong’s strength, companies from Media Internet, Communications Equipment and Consumer Electronics also performed strongly. Private enterprises like Huawei and Midea are without doubt the mainstay of innovative enterprises in the province. Shenzhen is the bellwether of innovation in Guangdong, as Shenzhen-based innovative companies take up about half of the province’s total. It is also impressive that of the four Non-metallic Material companies in the Chinese Top 100, two are from Guangdong.

Hubei has three of the Chinese Top 100: Dongfeng Motor Corporation, Wuhan Research Institute of Post and Telecommunications and Wuhan Iron and Steel (Group) Corp. Fiberhome is grouped into its parent company Wuhan Research Institute of Post and Telecommunications. Two Hunan innovators are SANY and Zoomlion Heavy Industry Science and Technology. Yutong is from Henan.

Guangxi and Hainan from Central and South China are absent from the list.

OTHER GEOGRAPHIC AREAS

Three companies from Southwestern China are among the Chinese Top 100 list. Also are China XD Group from Shaanxi in Northwest China and Anshan Iron & Steel Group Corporation from Liaoning in Northeast China. There is a significant gap in innovation capability between these areas and the more developed areas of China. We believe further transformation and policy incentives in these areas would enable innovation to drive further economic development.

“

“Protection of intellectual property, especially patent right, is a legitimate and monopolistic action taken by countries worldwide to drive invention and innovation. However, rather than legal protection of intellectual property or patent right, it is an enterprise’s innermost culture and philosophy that truly motivates innovation. Innovation is the gene of an enterprise in the Internet era. Among members in the Internet ecosystem, Alibaba always adheres to

“customer first” and “to make doing business easy”. These are Alibaba’s mission, vision and value. In the past 17 years, Alibaba Group has created a package of innovative business groups including Taobao, Alipay, Tmall, and AliCloud, which are unnumbered in value. More and more people are inspired to engage themselves in the global ecosystem composed of new retail, new finance, new manufacturing, new energy and new technology, to serve the whole mankind.”

— Amy Xu, Chief Patent and Technology Counsel, Alibaba Group

“

Alibaba


The steady increase of Alibaba’s invention is a solid proof of its strong innovation capability. As shown in Figure 3, Alibaba’s invention number has increased rapidly during the past few years. Less than 100 inventions were first published in 2010; in 2013, the number of new inventions soared to around 500, and continued to grow to nearly 600 by 2015.

Alibaba

Figure 3: Number of New Inventions (Basics) First Published 2006-2015

Figure 4: Number of New Inventions (Basics) Published in 2015 Broken Down by Technology AreaAlibaba

0

100

200

300

400

500

600

700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Alibaba

Data visualization

Data processing

e-Commerce

Instant messaging

Search result display

Code encoding and decoding

42

36

26

21

20

18

Source: Derwent World Patents Index (DWPI) under Clarivate Analytics

Founded in Hangzhou in 1999, Alibaba has grown to a worldwide leader in Internet and Online Commerce. Alibaba and its affiliates own several most advanced wholesale and retail platforms, and other Internet-based businesses, including online advertising and marketing, electronic payment, cloud computing, Internet services and mobile solutions.

INNOVATIVE CORPORATIONS

Through analysis of Alibaba’s patent technology areas, we can get a perspective of its R&D strategy. As shown in Figure 4, patent applications published by Alibaba in 2015 mainly covered the fields of data visualization, data processing, e-commerce and instant messaging. That shows Alibaba’s strategic focus on big data, e-commerce platform and computer software.


Figure 5: Distribution of Countries Where Patent Protection Is in Force or for Which Patent Protection Is Being Sought for All Inventions First Published in 2015 (Basics Published in 2015).

As shown in Figure 5, patent applications published by Alibaba in 2015 were distributed across major countries and regions around the world. The Greater China region (Mainland China, Hong Kong and Taiwan) was clearly of paramount importance. Nonetheless, the e-commerce giant has built significant patent protection in developed countries such as the U.S. and Japan. On the one hand, this shows the importance of the domestic market to Alibaba; on the other hand, it attests to Alibaba’s expansion in overseas markets.

Alibaba 2015 inventions patent family countries

CN 40.8%

18.7%

13.2%

11.5%

10.3%

1.9%

1.6%

0.8%

0.7%

0.5%

0.1%

HK

WO

US

TW

KR

EP

IN

SG

JP

CA

Alibaba 2015 inventions patent family countries

CN 40.8%

18.7%

13.2%

11.5%

10.3%

1.9%

1.6%

0.8%

0.7%

0.5%

0.1%

HK

WO

US

TW

KR

EP

IN

SG

JP

CA


Figure 6: Distribution of Patent Families by the Number of Members in Each Family

Number of family members

Num

ber o

f inv

entio

ns

253

171

15

48 4523

9 5 6

1 2 3 4 5 6 7 8 9

On average, the Alibaba patent family size is 2.35 patent publications per family. As shown in Figure 6, in 2015 over 100 DWPI families comprised 4 or more family members, indicating that Alibaba focuses on international protection for a substantial part of its innovation.

“

“Beijing Automotive strives for transformation and upgrading driven by technological innovation. By leveraging product and technology innovation, business model innovation and Internet Plus, it strides on a sustainable development road to achieve a transformation from an industry follower to a leader. Beijing Automotive plans to boost the development of new energy vehicle technology, strengthen the cooperation with local and global parts suppliers, and master the key technology in battery, electronic engine and electronic control. In intelligence development, Beijing Automotive follows the guidance of ‘China Manufacturing 2025’ and invests in the construction of customized intelligent manufacturing factories to enhance our product quality and competitiveness. In self-owned brand building, we firmly focus on the quality of core technology products and head for the goal of global Top 100.”

— Zhang Xin, VP of Beijing Automotive

“

Beijing Automotive


As shown in Figure 7, from 2009 on, the number of new inventions by Beijing Automotive has increased rapidly. This number has increased to around 2,700 in 2015. Beijing Automotive has been stepping up efforts at independent R&D, innovation and intellectual property protection, and has achieved great results.


Figure 8: Number of New Inventions (Basics) Published in 2015 Broken Down by Technology Area

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Beijing Automotive

500

1000

1500

2000

2500

3000

Beijing Automotive

Vehicle battery

Automobile frame

Engine

Vehicle electrics

Vehicle remote control

Vehicle transmission

Wiring harness

212

161

158

107

107

87

81


Beijing AutomotiveOne of the leading automakers in China, Beijing Automotive has evolved into a large state-owned group covering vehicle R&D and manufacturing, in combination with auto parts manufacturing, auto service trade, import & export and auto-financing. In 2016, Beijing Automotive ranked 160th in the Fortune 500. Headquartered in Beijing, Beijing Automotive has built 8 factories for passenger cars, 9 for commercial vehicles, and 3 for green vehicles in more than ten provinces. Beijing Automotive also owns factories in over 20 countries all over the world.


Patent applications published by Beijing Automotive in 2015 were mainly in vehicle battery, vehicle frame, engine, vehicle electrics, remote control, and transmission and wiring harness. Battery was at the top by the number of patents. We see that Beijing Automotive has been innovative not only in R&D of classic automotive parts; green and self-driving vehicles are also part of its strategic focus.



A comprehensive series of patent applications in different countries for an invention provides strong support for a company’s overseas expansion. As shown in Figure 9, in 2015 patents (DWPI family) of Beijing Automotive were largely only in China with a small proportion being extended to other countries. As the company beefs up its independent innovation capability and expands overseas, Beijing Automotive should also upgrade its Intellectual Property strategy to use patents as a powerful tool to protect itself in competition.



Beijing Automotive 2015 inventions patent family countries

CN 98.3%

0.8%

0.5%

0.3%

0.1%

WO

DE

EP

US


Num

ber o

f inv

entio

ns

2663

51 7

1 2 3

Beijing Automotive 2015 inventions patent family countries

CN 98.3%

0.8%

0.5%

0.3%

0.1%

WO

DE

EP

US

In 2015, there were 1.02 DWPI patents to every Beijing Automotive invention on average. Together with Figure 9, this indicates that most patents are only in the domestic market. Only a handful of them are extended abroad.

“

“To survive and thrive, a large company must keep investing heavily in R&D and innovation, especially in basic technologies. This gives the company the foundation it needs to make breakthroughs. Companies should learn to collaborate more openly—forge partnerships based on complementary strengths, and more actively engage in joint innovation. Beyond that, we all need to learn to share profits and share the results of joint innovation—essentially, learn to share success. Over the past several years, Huawei has consistently invested 10%–15% of its annual sales revenue in R&D, and 20% of that is spent on open-ended research in areas of scientific uncertainty. We have established 16 research institutes around the world to make the best use of global innovative talent. For us, building sharing mechanisms is a huge priority: we share the fruits of innovation with our customers, suppliers, and partners, as this lays the groundwork for bigger and better things in the future.”

—Ryan Ding, President of Products & Solutions, Huawei

“

Huawei



HuaweiHuawei is a world-leading ICT solution provider, with businesses in over 170 countries, serving over 1/3 of the world’s population. Huawei has been very committed in high R&D investment strategy, investing over 10% of its revenue in R&D. In 2015, Huawei had 79,000 employees working in its R&D department, 45% of company total; R&D investment was over 5.96 billion RMB, 15.1% of its total revenue. Huawei maintains its industrial leadership by developing among the world’s highest innovation capability through its 16 R&D centers all over the world. Thanks to its exponential growth in intelligent mobile devices, Huawei has soared to 129th in the 2016 Fortune 500. In the 2016 Top 100 China Private Enterprises released by China’s commerce association, Huawei ranked 1st with annual revenue of 395 billion RMB.


As shown in Figure 11 the number of new inventions (DWPI basics) published in patents by Huawei has been running at a consistently high level over the past decade. From 2012 to 2014, there was an almost 50 percent jump in volume. In WIPO’s 2016 report, Huawei is recorded as the company with most PCT applications, two years in a row.

As shown in Figure 12 patent applications published by Huawei (DWPI family) in 2015 were largely distributed in the fields of optical network unit, wireless data transmission, virtual machine, storage system, power supply and circuit board. Huawei has made substantial investment in product, technological and standard development in wireless communication in 2015, and patent applications have increased accordingly. In Huawei’s invention patents, optical network unit (DWPI family) topped the list among



0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

1000

2000

3000

4000

5000

6000

7000

Huawei Huawei

Optical network unit

Wireless data transmission

Virtual machine

Storage system

Power supply

Circuit board

700

529

354

329

215

168

technological fields. According the latest report by OVUM, Huawei has been the largest player in optical network unit in the world for seven consecutive years, with 20% market share. It has been dominant in Asia Pacific (AP), Europe, Africa and Middle East (EMEA) and South and Central America (SCA). Huawei has also made significant progress in wireless data transmission. In the 87th meeting of 3GPP RANI in November 2016, Huawei’s Polar Code won support from 59 representatives and became the eMBB coding plan ahead of LDPC by Qualcomm and Turbo 2.0 by France. This is a great breakthrough for Chinese companies in recent generations of mobile communication technology (2G, 3G and 4G). Huawei’s rich base of patents in Polar Code will strongly challenge Qualcomm’s dominance in mobile communication standards.



Huawei is also one of the biggest patent holders in the world: as of December 31, 2015, Huawei owned 50,377 granted patents, and made 52,550 Chinese patent applications and 30,613 foreign country applications. 90% of those patent applications are inventions. Therefore, no matter what metric we use, either total number of patent applications or ratio of inventions, Huawei’s innovation capability is superb.


As shown in Figure 13, patent applications published by Huawei in 2015 are spread across the major countries and regions around the world. As a global company with businesses in over 170 countries and regions, Huawei has successfully matched its patent protection coverage with its business growth.

Huawei 2015 inventions patent family countries

CN 41.6%

32.7%

11.5%

8.3%

2.5%

1.2%

0.7%

0.6%

0.3%

0.2%

0.2%

0.1%

0.1%

WO

US

EP

KR

JP

CA

AU

IN

VN

SG

TW

MX

Huawei 2015 inventions patent family countries

CN 41.6%

32.7%

11.5%

8.3%

2.5%

1.2%

0.7%

0.6%

0.3%

0.2%

0.2%

0.1%

0.1%

WO

US

EP

KR

JP

CA

AU

IN

VN

SG

TW

MX



Num

ber o

f inv

entio

ns

2006

2314

427 473169 85 34 12 8 5 1 3 1

1 2 3 4 5 6 7 8 9 10 11 12 13

As shown in Figure 14, on average, the Huawei patent family size is 2.11 patent publications per family in 2015. Nearly 50% families comprised 2 or more family members, and over 60 families have over 7 family members. Huawei obviously has a strong focus on securing international protection in multiple markets for most its innovation.

“

“Innovation is the paramount driver of development. Against the background of globalization, Midea has exerted a lot of efforts into building a user-centric innovation system. The system mainly encompasses three aspects: first, with the aim of developing excellent products, Midea established a four-level R&D system ranging from prior research to product development. Focusing on its ten key technologies, Midea carried out disruptive research and worked on cutting-edge technologies, thereby bolstering the industry’s development for the next 5-8 years. Secondly, Midea established an innovation and business incubation platform for its employees, to encourage them to become entrepreneurs within the company and grow together with the company. Thirdly, Midea built a global open innovation platform. By integrating global innovation resources, setting up R&D innovation centers around the world, and bringing in scientific research talents, Midea aims to promote localized product R&D and production worldwide.”

— Hongbo Fang, Chairman & CEO, Midea

“

Midea



MideaFounded in 1968, Midea is a global company specialized in Domestic Appliances and Air Conditioning. Its main products include air conditioners, refrigerators, washing machine, kitchen appliances and other domestic appliances. Midea has around 200 subsidiaries, 9 business units, 21 manufacturing sites and around 260 warehouses all over the world, with over 100,000 employees. Until 2015, Midea owned 21,581 granted patents. In 2016, Midea ranked 481st in the Fortune 500.


0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Midea

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Midea

Air conditioner

Refrigerator

Control system for domestic appliances

Water heating and control

Washing machine

Dust collector

1536

947

508

405

286

267

In recent years, Midea has been increasing R&D investment, stepping up product development, and beefing up its innovation ability. As shown in Figure 15, Midea’s invention number has been growing significantly especially since 2013. The number of new inventions tripled in two years.



As shown in Figure 16, newly patented inventions (DWPI family) applied by Midea in 2015 were mainly distributed in the fields of air conditioner, refrigerator, control system for domestic appliances, water heating and control, washing machine and dust collector. By the number of patents, the field of air conditioner ranked first. In 2008, Midea acquired Jiangsu Little Swan and merged with Royalstar, to become the leader in fridges and washing machines; in 2011, Midea acquired the air conditioning business unit of Carrier Corporation to accelerate its overseas expansion. Midea’s patent strategy aligns well with its growth strategy.




Num

ber o

f inv

entio

ns

8852

211 9 2 3 3 2 1

1 2 3 4 5 7 8 9


As shown in Figure 17, patent applications published by Midea in 2015 were mainly in the Chinese market; the remaining 2% of overseas patents cover a great number of countries. Besides PCT applications, Midea has patents in Europe, US, Japan, Korea, Australia, Canada, India, Vietnam and South Africa. As Midea becomes more internationalized, its patent coverage is expanding. As Midea continues to go global through the closing of several M&A deals, it will need more overseas patents to protect its overseas business.


Midea 2015 inventions patent family countries

CN

WO

US

EP

AU

JP

CA

KR

BR

IN

VN

ZA

97.5%

1.7%

0.2%

0.2%

0.1%

0.1%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

Midea 2015 inventions patent family countries

CN

WO

US

EP

AU

JP

CA

KR

BR

IN

VN

ZA

97.5%

1.7%

0.2%

0.2%

0.1%

0.1%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

As shown in Figure 18, on average, the Midea patent family size is just 1.03 patent publications per family in 2015. Protection for the overwhelming majority of its innovation is currently solely for the domestic market. Midea will need to invest further in patent protection globally.

“

“Innovation in equipment manufacturing integrates customer demands with state-of-the-art technologies. Shanghai Electric pools its scientific research and technical staff’s wisdom and experience, and draws upon the scientific research achievements of global R&D institutions, design institutes, universities and enterprises. By gathering all parties’ wisdom and leveraging our own solid foundation, we make energy equipment greener and more low-carbon, and makes industrial equipment smarter and more efficient, to steer customers’ demand and provide them with better products and services.”

—Ou Huang, CTO, Shanghai Electric

“

Shanghai Electric



Shanghai Electric Shanghai Electric is one of the largest equipment manufacturing conglomerates in China, with distinctive advantages within the large-scale equipment sector, especially in equipment assembly, general contracting and comprehensive service for modern equipment. An assessment for the “Top 500 Asian Brands” in 2007 ranked Shanghai Electric 5th in Asia and 1st in China in machinery industry. High efficiency and clean energy as well as new energy equipment represent its core business segments, which account for 70% of segmental revenues. Leading products include 1,000MW supercritical thermal power units, 1,000MW nuclear power generation units, heavy-duty equipment, power transmission and distribution equipment, elevators, printing machinery and machine tools.


0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Shanghai Electric

100

200

300

400

500

600

700

Shanghai Electric

Rotor for pump, motor

Welding

Hydraulic pump testing

Wind power control system

Multi-path temperature measuring

31

29

28

23

14

As shown in Figure 19, back in 2006 Shanghai Electric started to pay attention to intellectual property and business innovation, taking the lead among Chinese equipment manufacturers. In January 2009, the SEPG’s Technology Research and Development Center was founded. In 2012, Shanghai Electric announced its own fifteen-year technology roadmap, including a three-layer innovation system comprising headquarter-level research institute, technology innovation center and subsidiary-level R&D departments. Also included are the 18 specific focused areas in four main technology fields. This technology roadmap aims to drive sustainable growth of the whole conglomerate. In 2014, Shanghai Electric invested 400 million Euro in exchange for 40% of the shares in Ansaldo Energia, a global player in the power generation market, and therefore gained access to its key technologies. In the



past decade, the number of patents published by Shanghai Electric has been rising, which shows Shanghai Electric’s continuous commitment to innovation and intellectual property.

Energy equipment is the core of Shanghai Electric’s business. Therefore, Shanghai Electric has made great R&D investment in coal energy, wind energy and nuclear energy, and built a rich reserve of inventions. The company has made many breakthroughs in various fields. As shown in Figure 20, new DWPI families to Shanghai Electric in 2015 were mainly distributed in the fields of rotors for pumps and motors, welding, hydraulic pump testing, wind power control systems and multi-path temperature measuring technology.




Num

ber o

f inv

entio

ns 416

261 2

1 2 3 4


Figure 21 shows the geographical distribution of patents published by Shanghai Electric in 2015. The data shows that the company’s patents were mainly in China, and a small number in other countries. This aligns with the markets that the enterprise is focused on.


As shown in Figure 22, in 2015, the Shanghai Electric patent family size is just 1.08 patent publications per family on average. Together with Figure 21, this shows that most its patents are in the domestic market, and only a handful of them are extended abroad. As China pursues the national strategy of “One Belt, One Road”, such high-end equipment manufacturers need to build broader international patent portfolios to match their market strategy of going global.

Shanghai Electric 2015 inventions patent family countries

CN

EP

US

JP

GB

IN

KR

WO

95.2%

1.7%

1.5%

0.8%

0.2%

0.2%

0.2%

0.2%

Shanghai Electric 2015 inventions patent family countries

CN

EP

US

JP

GB

IN

KR

WO

95.2%

1.7%

1.5%

0.8%

0.2%

0.2%

0.2%

0.2%

“

“Chinese enterprises have developed and grown tremendously to be where they are now. They are adopting innovation as the cornerstone of their next phase of growth. This report provides an overview of the current innovation landscape of Chinese enterprises and future context as they evolve to become global players.”

—Professor ZHANG Ping, Professor of Law School and Executive Dean of Intellectual Property Institute of Peking University


Derwent World Patents IndexTM

For validity and infringement insight, unearthing existing prior art, identifying white space and performing competitive landscape research Derwent World Patents Index (DWPI) is the world’s most trusted and authoritative source of global patent information, covering 50 patent-issuing authorities. Bibliographic patent information is translated into English and editorially enhanced to bring clarity to a patent’s true intentions.

A team comprising hundreds of editors, most with advanced degrees in their areas of specialization, incorporate value-added insight alongside original patent content to accurately understand the scope of an invention.

The world’s first and only such patent search resource, with over 50 years of longevity and trusted by nearly 40 of the world’s patent offices, DWPI is a unique and unparalleled resource for patent research.

Derwent Patents Citation Index For identifying possible partners, threats and ways to evolve a technology area Derwent Patents Citation Index (DPCI) is a value-added citation database with both patent and scholarly literature citations. These trace historical references on which an invention is built, as well as an invention’s impact and future technologies that advance it.

Solutions for Innovation Success Updated weekly, there are more than 11 million patent families and unique inventions that have been editorially enhanced for following forward and backward citations. With this insight, users can identify potential licensing partners, competitive threats and ways to evolve core intangible assets.

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Thomson Innovation is the leader in global patent intelligence and collaboration. More than 90 million patents from over 90 countries have been covered in this database. Within Thomson Innovation, DPCI is combined with the Derwent World Patents Index (DWPI) to provide the widest perspective of an invention and its impact and influence. Thomson Innovation provides the comprehensive, relevant, reliable information you need to save time, avoid risk, and create commercial gain. In Thomson Innovation access the most trusted global patent data with powerful capabilities to perform analysis and collaborate efficiently.

Thomson Data AnalyzerTM

Thomson Data Analyzer (TDA) is the industry leading analysis tool that transforms large amounts of IP data into actionable reports allowing for more strategic IP decisions. Easily analyze trends, profile competitors, avoid or uncover patent infringement, and identify strategic development opportunities. TDA is desktop software that offers a powerful interface for managing and extracting business-critical insights from patent and scientific data within in-house or commercial databases. With its advanced analysis technology, TDA allows you to cut through masses of data to give you clear and definitive insights — at a glance.

WHO WE ARE

Clarivate™ Analytics accelerates the pace of innovation by providing trusted insights and analytics to customers around the world, enabling them to discover, protect and commercialize new ideas faster. Formerly the Intellectual Property and Science business of Thomson Reuters, we own and operate a collection of leading subscription-based businesses focused on scientific and academic research, patent analytics and regulatory standards, pharmaceutical and biotech intelligence, trademark protection, domain brand protection and intellectual property management. Clarivate Analytics is now an independent company with over 4,000 employees, operating in 100 countries and owns well-known brands that include Web of Science™, Cortellis™, Thomson Innovation™, Derwent World Patents Index™, Thomson CompuMark™, MarkMonitor®, Thomson IP Manager™ and Techstreet™, among others. For more information, please visit us at Clarivate.com.

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