State of innovation Thomson Reuters 2016

DISRUPTIVE,
GAME-CHANGING
INNOVATION
2016 State of Innovation
REUTERS

“ Valeo’s ambition is to bring the most innovative technologies into the
cars that are driven every day by hundreds of millions of people.
One definition perfectly describes our approach: innovation as an
invention that has found a market…In a world that is more and more
open, we promote an innovation of the widest possible scope, including
partnerships with public research bodies, academic organizations,
customers, and suppliers.”
—Jacques Aschenbroich, CEO, Valeo

TABLE OF CONTENTS
Introduction.....................................................................................................................................4
Observations Findings............................................................................................................. 5-6
Aerospace Defense............................7-12
Automotive..........................................13-18
Biotechnology....................................19-24
Cosmetics Wellbeing.....................25-30
Food, Beverage Tobacco................31-36
Home Appliances.............................. 37-42
Information Technology....................43-48
Medical Devices.................................49-54
Oil Gas........................................... 55-60
Pharmaceuticals................................61-66
Semiconductors.................................67-72
Telecommunications..........................73-78

2016 State of Innovation stateofinnovation.com Introduction 4
DISRUPTIVE INNOVATIONS LEAD
DOUBLE-DIGIT GROWTH
It takes a village to do a lot of things these days, and innovation is no exception.
2015 was the year of many innovative firsts and it took lots of villages to get there. In fact,
innovation over the last year was one of the most active in history with double-digit growth of
13.7 percent. This jump was the result of lots of villages working to find better ways of doing
things and breakthrough science, technology and medicine. It was the year of Collabovation.
Defining the trend
Collabovation is a term used to represent the elegant
convergence of collaboration, innovation, cultivation,
cross-pollination and calibration, swirled into the powerful
process of bringing inventions to life with strategic partners
and suppliers. Coming up with a novel idea can be a feat
in itself, but actually bringing one to market is an entirely
different game. The Lifecycle of Innovation, from discovery
and protection to commercialization and launch, involves
everything from research and prototyping to intellectual-
property protection and product monetization. In today’s
fast-paced world of science, technology and medicine, where
disruption and multi-tiered competition are the norm, it takes
collabovation to truly succeed.
Breaking through
Think of the many breakthroughs that happened over the
last year. It was the first time astronauts from different
countries embarked on the longest human space mission
by two men: American Scott Kelly and Russian Mikhail
Kornienko, occupying the International Space Station for
nearly a year. It was the first time self-driving cars were
tested on public roadways in certain jurisdictions around the
world. And, the first time a biosimilar drug was approved in
the US, while certain other drugs were being tested on 3D
printers. It was also the year when the Internet of Things (IoT)
garnered mass appeal, allowing homeowners to manage their
dwellings with omnipotent-like intelligence, while cloud
storage became mainstream.
These firsts were possible because of the massive investment
in innovation–in collabovation–made by organizations
around the world. Overall, global innovation activity saw a
notable uptick over the last year, with Medical Devices, Home
Appliances and Aerospace leading the charge. These sectors
all experienced year-over-year, double-digit growth, as did
Information Technology and Oil Gas. In fact, every sector
was in the black outside one: Biotechnology, which decreased
slightly given a leveling off in that industry.
Moving the needle
Collabovation is happening between corporations
and universities. Government agencies and research
centers. Start-ups and bellwethers. Physical and mental
boundaries are being lifted. Like-minded, similar-goaled
organizations are finding each other. A web of information
is aligning partners and best practices in an effort to
collaboratively innovate.
This report showcases some of these instances, as well as
uncovers key innovation trends for 2016. Examination of
global patent activity provides a glimpse into what’s hot,
what’s not, what’s coming next, who leads and which
regions are the most active.
Welcome to the 2016 State of Innovation. We invite you
to ponder these pages and consider new partners with
whom to collabovate.
Vincent J. Caraher,
President,
Thomson Reuters IP Science

2016 State of Innovation stateofinnovation.com Observations Findings 5
OBSERVATIONS FINDINGS
Up, up and away
Global innovation activity experienced gains across 11 of the
12 sectors throughout 2015, with the largest leaders being
Medical Devices, Home Appliances and Aerospace Defense.
This rebound follows prior year declines for Medical Devices
and Aerospace, which had year-over-year innovation drops of
5 percent and 1 percent, respectively, while Home Appliances
was flat. Semiconductor activity also fell in 2014, but saw a
bump of 3 percent in 2015.
The longer-term view, covering the seven years from
2009–2015 (inclusive), highlights just how robust and active
innovators have been. The combined output across all 12
technology areas was on a consistent upward climb (Figure
1). The largest overall increase for the extended period was in
Food, Beverage Tobacco, which skyrocketed 128.25 percent.
Aerospace Defense and Home Appliances also experienced
triple-digit jumps, as shown in Figure 2.
Sign of the Times
Looking across this seven-year span, it’s clear the figures
reflect a sign of the times. The world was rebounding from the
greatest economic crisis in the last 75 years, while technology
had catapulted the Digital Era into the next stratosphere,
creating opportunities heretofore unknown.
This longer-view shift is indicative of how our world has been
evolving. For example, the production of disease-resistant
crops and genetically modified foods, aimed at ensuring an
ample food supply for a world population projected to hit
10 billion later this century. The development of appliances
that communicate with one another and reflect their owners’
preferences; the actualization of the IoT. The quest to explore
space, understand the universe beyond our galaxy and find
new frontiers for future humans—as well as equip defense
teams for wars that require continued military investment.
Research Innovation
The relationship between research and innovation is well
understood. Analysis shows that scientific and scholarly
research typically precedes discovery and the protection
of innovation rights by a few years. It’s therefore prudent to
look at what topics, institutions and regions lead globally
in research to get an even richer understanding of what the
future holds.
A look across the last decade and research related to the
12 technology areas, as contained in the Web of ScienceTM
,
1,000,000
1,500,000
2,000,000
2,500,000
2015201420132012201120102009
0.00%
30.00%
60.00%
90.00%
120.00%
150.00%
AllTechnology
Telecommunications
Semiconductors
Pharmaceuticals
OilGas
MedicalDevices
Food,BeverageTobacco
HomeAppliances
CosmeticsWellbeing
InformationTechnology
Biotechnology
Automotive
Aerospace
Figure 1: Global Innovation Output
Across 12 Sectors (2009–2015)
Figure 2: Percentage Growth in
Innovation Activity (2009–2015)
Source: Derwent World Patents Index and Thomson Innovation
Source: Derwent World Patents Index

2016 State of Innovation stateofinnovation.com Observations Findings 6
shows that output related to these topics has returned to its
pre-economic-crisis levels, as shown in Figure 3. As the tools for
finding prior research become even more refined, researchers
collaborate more with others and pure or basic research
investments are sometimes married with innovation,
causing the scholarly activity to even out.
Innovation Drives the Future
Innovation is a driver of economic success and growth.
Companies and countries that consistently invest in innovation
by prioritizing RD and allocating funds and resources for this
activity are proven to be more successful than those that don’t.
The Thomson Reuters Top 100 Global Innovators are an
example of this. The honorees of this designation, based on a
comprehensive, patent-based methodology, have consistently
outperformed the SP 500 and/or MSCI World Index in terms
of market-cap weighted RD investment, annual revenue and
employment. And, regions like the UK, which has fewer RD
and innovation incentives compared to Germany and Japan,
has not made the Top 100 Global Innovators list in several years.
As the process of innovation becomes more collaborative in our
technologically driven world, it’s hard to imagine the trajectory
of activity changing in the near future.
Innovation drives the future. And the future is ours. Innovative
disruptions are a hallmark of the Digital Era. With the proper
balance of discovery, protection and commercialization, these
numbers will continue to grow and our world will continue to
evolve before our eyes.
% Industry
2015
Volume
2014
Volume
%
Change
5% Aerospace Defense 71,633 62,162 15%
12% Automotive 166,867 153,872 8%
3% Biotechnology 41,624 42,584 -2%
1% Cosmetics Well Being 11,307 11,017 3%
2% Food, Beverage
Tobacco
26,605 26,333 1%
6% Home Appliances 86,301 71,278 21%
31% Information Technology 429,806 380,325 13%
9% Medical Devices 118,658 93,462 27%
2% Oil Gas 27,556 24,158 14%
9% Pharmaceuticals 116,286 111,479 4%
8% Semiconductors 114,488 110,761 3%
12% Telecommunications 166,601 161,739 3%
Overall View of Innovation
250,000
300,000
350,000
400,000
20152014201320122011201020092008200720062005
Figure 3: Scientific Research Output
Across 12 Technology Areas (2005–2015)
Source: Web of Science
12%
3%
31%
1%
6%
2%
9%
9%
8%
2%
12%
5%
30%

2016 State of Innovation stateofinnovation.com Aerospace Defense 7
AEROSPACE DEFENSE
From dreamliners to space stations to unmanned
military vehicles, the window on our world is changing.
REUTERS/LUCAS JACKSON

COLONIZING THE MILKY WAY
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
Space Administration (NASA) will spend $18.5 billion on
its 2016 space exploration plan.2
Its goals this year include
increasing utilization of the International Space Station
(ISS) science and technology hardware by 70 percent and
launching 13 science and cargo missions, among many
other things.
In the race to colonize space, partnerships abound. There are
many public/private sector arrangements underway, related
to the Collabovation theme mentioned earlier. The European
Space Agency (ESA) recently launched
an initiative to find private sector partners with which to
explore space in its “Space Exploration as a Driver for Growth
and Competitiveness: Opportunities for the Private Sector,”
where it states: “ESA is looking into novel ways to advance
its strategic goals for space exploration, based on strategic
partnerships with the private sector, including entities from
the space and nonspace industry.3
”
Similarly, articles about NASA partnering with Boeing,
Elon Musk’s SpaceX and others reaffirm the commitment
and passion to make history and be the first to get to Mars,
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

AEROSPACE DEFENSE OVERVIEW
% Subsectors 2015 2014 % Change
39% Production Techniques 22,392 18,823 19%
23% Advanced Materials 13,002 12,233 6%
13% Structures Systems 7,468 7,136 5%
12% Propulsion Plants 6,760 5,894 15%
11% Instrumentation 6,502 6,270 4%
2% Space Vehicles
Satellite Technologies
1,424 1,156 23%
Top 10 Global Innovators–Aerospace Defense (2015)
Company Country # Inventions
United Technologies Corp US 716
State Grid Corp of China China 715
Airbus Operations France 620
Jiangxi Hongdu Aviation Ind Group Co Ltd China 617
Boeing US 531
General Electric US 424
LG S Korea 392
Siemens Germany 387
Toyota Japan 360
Hyundai S Korea 334
Top 10 Space Technology Innovators–Asia (2011-2015)
Harbin Institute of Technology China 186
Korea Aerospace Research Institute S Korea 163
China Academy Launch Vehicle Technology China 157
Beijing Control Engineering Research Institute China 108
University Beijing Aeronautics Astronauts China 93
Shanghai Satellite Engineering Institute China 87
Beijing Institute Spacecraft Environmental Engineering China 77
Shanghai Aerospace System Engineering Research Institute China 72
Mitsubishi Electric Japan 69
Beijing Space Aerocraft Collectivity China 69
11%
2%
12%
23%
13%
39%

Top 10 Space Technology Innovators–Europe (2011-2015)
Airbus France 225
Energiya Rocket Russia 113
Information Satellite Systems Reshetnev Russia 80
Thales France 73
Center Nat Etud Spatiales France 42
Mechanical Engineering Research Institute Russia 61
Cosmic Scientific Production Centre Russia 41
Deut Zent Luft Raumfahrt Germany 32
Snecma France 24
Moscow Mars Experimental Construction Bureau Russia 19
Top 10 Space Technology Innovators–North America (2011-2015)
Boeing US 221
Honeywell US 41
Lockheed Martin US 33
Raytheon US 31
NASA US National Aerospace Space US 29
Space Systems/Loral US 21
US Navy US 16
Hamilton Sundstrand US 15
Emcore Solar Power US 14
Qualcomm US 12
Most Influential Scientific-Research Institutions in Aerospace (2005-2015)
Institution Country # of Papers (WoS) Relative Citation Impact*
University of Michigan System US 468 1.95
United States Department of Energy US 372 1.43
Delft University of Technology Netherlands 414 1.33
University of Texas Austin US 333 1.32
Centre National de la Recherche Scientifique (CNRS) France 551 1.25
Goddard Space Flight Center US 465 1.22
University of Florida US 312 1.21
US Air Force Research Laboratory US 512 1.19
Pennsylvania State University US 403 1.18
Pennsylvania Commonwealth System of Higher Education US 445 1.18
* Citation impact normalized against average for field and year of publication (n = 1.00)

Summary
Innovation activity over the last year reflects man’s quest
to conquer new frontiers, as well as push the boundaries of
our daily flight expectations, with faster, larger and more
frill-equipped airplanes than ever before.
The Aerospace Defense sector saw a significant jump
of 15 percent over prior year activity, with the largest
jumps occurring in Space Vehicles Satellite Technologies
(23 percent), followed by Production Techniques
(19 percent) and Propulsion Plants (15 percent). There’s
no denying the race is on to find a sustainable way for
humans to inhabit space, as part of global strategies
to handle the exploding human population and ill
effects of climate change on earth.
The international space race is just that, international.
The top 10 innovators in this sector hail from the United
States, China, France, South Korea, Germany and Japan.
And, they include a mix of expected and unexpected
companies, including United Technologies Corp., Airbus
and Boeing as well as General Electric, LG Electronics and
Toyota, respectively.
The US leads in the impact of its academic research in
aerospace, with 80 percent of the top 10 institutions coming
from that country. European organizations take the two
remaining top 10 spots, while Asian institutions are notably
absent from those with impactful contributions.
“ [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

2016 State of Innovation stateofinnovation.com Aerospace Defense 12REUTERS/MAX ROSSI

2016 State of Innovation stateofinnovation.com Automotive 13REUTERS/THOMAS PETER
AUTOMOTIVE
As automobiles become more advanced computers,
what’s to become of the pastime of taking a 4-cylinder
combustion engine out for a Sunday drive?

2016 State of Innovation stateofinnovation.com Automotive 14
ARTIFICIAL INTELLIGENCE ON WHEELS
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
Vegas, Nevada, US, featured more automobile exhibitors
than ever before this year, which brought the show
organizers to create a “Vehicle Intelligence Marketplace”
for the first time.4
Such rapid automotive advancement is
the result of thousands of hours of research, development,
experimentation and innovation by auto manufacturers and
their partners around the world.
Auto-collabovation is alive and well. Daily news headlines tout
the latest partnerships in this space. For example, Renault
and ARZA, in order to bring the electric vehicle market to
Canadian masses5
; Ford and Spotify, to enhance the musical
experience of FordPass customers; and organizations
like the Open Automotive Alliance (OAA), which aims to
make automotive technology safer, more seamless and
more intuitive.6
In today’s world, the realities of artificial intelligence stretch
far beyond the reach of IBM’s Watson. We must start to think
of and see our vehicles as the technological masters they are.
“ Increased partnership between traditional vehicle manufacturers and information/
technology companies is already changing autonomous vehicles into advanced
artificial-intelligence transportation chariots that can continually adapt to
environmental conditions and driver ‘likes’. In today’s world, the realities of artificial
intelligence stretch far beyond the reach of IBM’s Watson. We must start to think of
and see our cars for the technological masters they are.”
—Kevin Chapman, Lead Engineering Expert, Thomson Reuters
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

AUTOMOTIVE OVERVIEW
% Subsectors 2015 2014 % Change
21% Alternative Powered Vehicles 37,844 32,973 15%
11% Navigation Systems 19,753 18,538 7%
11% Safety 18,551 18,893 -2%
11% Transmission 20,175 18,484 9%
10% Seats, Seatbelts and Airbags 18,165 13,596 34%
7% Suspension Systems 12,827 11,003 17%
6% Pollution Control 10,114 9,677 5%
6% Steering Systems 10,841 11,599 -7%
5% Engine Design and Systems 7,845 7,334 7%
5% Security Systems 8,627 8,360 3%
4% Braking Systems 7,654 6,831 12%
3% Entertainment Systems 4,659 4,267 9%
Top 10 Global Innovators–Automotive (2015)
Toyota Japan 4,214
Hyundai S Korea 2,469
Bosch Germany 2,390
Denso Japan 2,169
Honda Japan 2,039
Ford US 1,837
Daimler Germany 1,575
GM US 1,435
Beiqi Foton China 1,223
Nissan Japan 1,188
Sources: Derwent World Patents Index
Top 10 Alternative-Powered Vehicle Innovators–Asia (2011-2015)
Toyota Japan 9,807
Hyundai S Korea 2,827
Honda Japan 2,732
Nissan Japan 2,633
Denso Japan 2,591
Samsung S Korea 2,515
LG S Korea 2,051
Panasonic Japan 1,970
Toyoda Japan 1,634
Sumitomo Electric Japan 1,492
21%
11%
11%
11%
10%
7%
6%
6%
5%
5%
4% 3%
30%

Top 10 Alternative-Powered Vehicle Innovators–Europe (2011-2015)
Bosch Germany 3057
Daimler Germany 1705
Peugeot Citroen France 709
BMW Germany 637
Siemens Germany 624
Renault France 580
Volkswagen Germany 560
Audi Germany 477
Valeo France 411
Continental Germany 386
Top 10 Alternative-Powered Vehicle Innovators–North America (2011-2015)
General Motors (GM) US 1614
Ford US 1517
Caterpillar US 168
Johnson Controls Technology US 156
Tesla Motors US 149
DuPont US 117
Remy Technologies US 109
Qualcomm US 88
IBM US 83
Most Prolific Scientific Research Institutions in Automotive (2005–2015)
Institution Country # of Papers (WoS)
University of Michigan US 292
Ford Motor Company US 209
Polytechnic University of Turin Italy 187
Technical University of Munich Germany 173
Shanghai Jiao Tong University China 161
Indian Institute of Technology System India 158
Ohio State University US 151
RWTH Aachen Germany 135
Chalmers University of Technology Sweden 134
Seoul National University S Korea 131

Summary
Automotive innovation accelerated by 8 percent from
year-end 2014 to year-end 2015. All but two of the 12
subsectors jumped up, with the largest gains in Seats,
Seatbelts Airbags (34 percent) followed by Suspension
Systems (17 percent) and Alternative Powered Vehicles
(15 percent), respectively.
Asia continues to dominate the field overall with 60 percent
of the Top 10 headquartered there. Japan’s Toyota takes
the top spot again, followed by the same top-five-priority-
order of last year: Hyundai (South Korea), Bosch (Germany),
Denso (Japan) and Honda (Japan).
China joined the top 10 ranks for the first time, coming in
ninth overall with Beiqi Foton, the country’s largest truck
manufacturer. This is despite recent news of the company’s
sales down 15.3 percent in March 2016 over the same period
one year earlier.7
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.
In terms of alternative-powered vehicle innovation, Japan’s
Toyota is in a category almost unto itself with nearly 10,000
unique inventions in that area alone last year. The next
closest competitor in that space is Germany’s Bosch,
with just over 3,000 unique inventions.
Germany and France are the only two countries in Europe
in the top 10 for Alternative-Powered Vehicles, with
Germany taking seven of the 10 spots. The US occupied
all of the top 10 in North America, with GM and Ford
pulling into the lead.
The most prolific automotive research institutions have a
more diverse global footprint, representing the US, Italy,
Germany, China, India, Sweden and South Korea. Nine of
the top 10 research institutions doing work in this space are
the same as the prior year—the newcomer being Chalmers
University of Technology in Sweden.
“ 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

REUTERS/TIM WIMBORNE

2016 State of Innovation stateofinnovation.com Biotechnology 19
BIOTECHNOLOGY
The sequencing of the human genome is leading to
breakthroughs in and beyond medical treatments.
What doesn’t biotech have its hand in today?

GENETICALLY MODIFIED LIFE
Biotechnology experienced a large number of firsts over the last year.
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
by the US Food and Drug Administration (FDA), including the
first biospecific antibody: Amgen’s Blincyto; the first biosimilar
drug: Novartis’ Zarxio; and the first biotech food animal:
Aquabounty Technologies Inc.’s salmon, which grows
faster than farmed fish.
There’s no disputing that the advent of biotechnology
has created an experimental sandbox for everything from
genetically manipulating DNA to modifying the composition
of plants and printing drugs using bio-organisms. While this is
cutting-edge work, the pace of innovation fell slightly short
of where it was a year earlier.
“ Governments and payers are counting on biosimilars to revolutionize health care by
reducing the cost of important biologics and increasing access to life-saving drugs.
For that to happen, the follow-on biologics (FOBs) will have to deliver the power of
the reference drugs at a price financially strapped countries can afford and gain the
confidence of the marketplace.”
—Mari Serebrov, Regulatory Editor, BioWorld

BIOTECHNOLOGY OVERVIEW
% Subsectors 2015 2014
%
Change
70% General biotechnology 30,197 29,374 3%
13% Diagnosis of diseases 5,614 6,984 -20%
10% Cancer treatment 4,412 4,855 -9%
5% Genetically modified crops 1,969 2,153 -9%
2% Drug discovery 824 951 -13%
Top 10 Global Biotechnology Innovators (2015)
DuPont US 407
University of Jiangnan China 287
Monsanto US 229
Roche Switzerland 203
University of Zhejiang China 200
Rural Development Administration S Korea 191
University of California US 184
Centre National de la Recherche Scientifique (CNRS) France 166
Lanzhou Veterinary Res Inst China Agric China 165
Institut National de la Santé et de la Recherche Médicale (INSERM) France 160
Top 10 Biotech-In-Cancer Innovators–Asia (2011-2015)
Samsung S Korea 104
University Fudan China 103
University Yonsei S Korea 77
Agency for Science Technology Research, A*STAR Singapore 74
Korea Research Institute of Bioscience Biotechnology S Korea 71
University Shanghai Jiaotong China 71
Peking University China 69
Suzhou Puluoda Biological Technology Co China 68
Osaka University Japan 65
70%
13%
10%
5% 2%
30%

Top 10 Biotech-In-Cancer Innovators–Europe (2011-2015)
Institut National de la Santé et de la Recherche Médicale (INSERM) France 244
CNRS France 195
Novartis Switzerland 161
Sanofi France 136
UCL Business UK 66
Glaxo Group UK 65
Deutsches Krebsforschungszentrum Germany 59
Bayer Pharmaceutical Germany 56
Yeda Research Development Company Israel 48
Top 10 Biotech-In-Cancer Innovators–North America (2011-2015)
Genentech US 266
US Department of Health US 186
University of Texas System US 170
John Hopkins University US 140
Abbvie US 134
Dana Farber Cancer Institute US 127
General Hospital US 116
Harvard US 111
University of Pennsylvania US 109
Most Influential Scientific Research Institutions In Biotech (2005-2015)
Institution Country # of Papers (WoS) Category Normalized Citation Impact
Broad Institute US 485 7.43
European Molecular Biology Lab Germany 801 4.46
Massachusetts Institute of Technology US 1,556 4.25
Wellcome Trust Sanger Institute UK 755 4.11
Howard Hughes Medical Institute US 913 4.10
Memorial Sloan Kettering Cancer Center US 375 3.26
Harvard University US 3,288 3.07
Lawrence Berkeley National Lab US 623 3.03
Dana-Farber Cancer Institute US 425 2.90
VA Boston Healthcare System US 594 2.89

Summary
Biotech was the only technology area of the 12 studied
that decreased its year-over-year innovation output,
experiencing a 2 percent decline over 2014. This is after
having had a 7 percent overall increase from 2013. And all
but one of the subsectors, General Biotechnology, declined
from the earlier period, with the steepest drops in the
Diagnosis of Diseases (20 percent) and Drug Discovery
(13 percent).
China, France, Germany, South Korea and the US lead the
world in biotech innovation. China and the US each have
three of the top 10 spots, followed by France with two, while
Germany and South Korea split the remaining two.
Biotechers are clear collabovators. Three of the top 10
global biotech innovators are universities and seven of the
top 10 are either a university or research center. No other
sector has this mix in its top 10. The trend continues beyond
the global top 10 to regional sub-sector leaders in cancer-
treatment innovation as well, which comprises a mix of
private and public institutions.
The US dominates biotech scientific-and-scholarly research
output with 80 percent of the top 10. The remaining two
institutions are from Europe, one of which is headquartered
in the UK and the other is in Germany. Once again the
Broad Institute takes the lead spot with the most impactful
research, whereas MIT was bumped from second to third
place by the European Molecular Biology Lab.
It appears that Biotech has leveled off somewhat, but it
remains to be seen whether this sector will pull ahead
again in the future. The technologies are still in early stages
and the players are still coming into their own. One thing
is certain, the industry is one to watch as the output of
its activity is sure to have an immense impact on all life:
human, plant, animal, aquatic and more.
“ Collaboration is critical to igniting innovation; we work closely with our customers,
and with each other. Our spirit of collaboration extends to our 46 technology
platforms, which range from adhesives and abrasives, to ceramics and light
management. We leverage those technologies across all our businesses and
subsidiaries to create unique and relevant products for customers.”
—Inge Thulin, Chairman, President CEO, 3M

2016 State of Innovation stateofinnovation.com Cosmetics Wellbeing 25
COSMETICS WELLBEING
Computers aren’t the only things getting smarter—your personal
care products are getting to know you, too.
REUTERS/RAFAEL MARCHANTE

SOCIAL MEDIA SPURS COSMETICS SECTOR
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
there were 6.7 million Botox procedures done in 2015,
1 percent more than the prior year, as well as 27.5 thousand
lip-augmentation surgeries (a 48 percent increase from 2000)
and 12.7 thousand cheek-implant procedures (up 21 percent
from 2000)—and this just starts to scratch the surface
of the litany of possible cosmetic surgeries available.8
Bigger is better in today’s beauty-bingeing world,
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

COSMETICS WELLBEING OVERVIEW
%
Change
41% Skin 6,063 5,407 12%
38% Make-up 5,597 5,722 -2%
17% Hair 2,522 2,614 -4%
2% Perfume 289 342 -15%
2% Antiperspirant 264 274 -4%
Top 10 Global Innovators–Cosmetics Well Being (2015)
LG Household Healthcare S Korea 315
L'Oreal France 314
Kao Japan 214
Henkel Germany 154
PG US 144
AmorePacific S Korea 125
Aesthetic Beijing Technology Co China 87
Unilever Netherlands / UK 75
Beiersdorf Germany 73
Kose Japan 70
Top 10 Make-Up Innovators–Asia (2011-2015)
KAO Japan 776
AmorePacific S Korea 534
LG S Korea 397
Shiseido Japan 356
Kose Japan 307
Pola Chem Japan 178
Lion Japan 144
Nippon Menard Keshohin Japan 142
Nippon Oil Fats Japan 110
Fujifilm Japan 91
41%
38%
17%
2%2%

Top 10 Make-Up Innovators–Europe (2011-2015)
L'Oreal France 1,636
Henkel CO Germany 271
BASF Germany 214
Unilever Netherlands / UK 202
Beiersdorf Germany 198
CNRS France 107
DSM IP Assets BV Netherlands 91
Merck Patent Germany 81
Evonik DeGussa Germany 77
Symrise Germany 52
Top 10 Make-Up Innovators–North America (2011-2015)
Procter Gamble US 296
DuPont US 156
Dow Corning US 107
Celanese US 99
Avon US 96
Allergan US 91
Johnson Johnson US 73
Dow Global Technologies US 61
ELC Management US 51
Colgate Palmolive US 41
Most Prolific Scientific Research Institutions In Cosmetics (2005–2015)
University of Sao Paulo Brazil 177
US FDA US 108
Procter Gamble US 103
Cosmetic Ingredient Review US 102
Harvard University US 83
Chinese Academy of Sciences China 81
State University of Campinas Brazil 78
University of California Los Angeles US 70
University of California San Francisco US 68

Summary
Despite plastic surgeons being busier than ever
(skin-related innovation is up 12 percent), the bulk of the
cosmetic subsectors dipped over the prior year. Fragrances
experienced the largest drop, of 15 percent. Nevertheless,
Cosmetics Well Being came out on the positive side
overall, with a modest gain of 3 percent over 2014.
The world’s most active Cosmetics Well Being innovator
is, surprisingly, South Korea’s LG Household Healthcare,
part of the LG family of businesses focused on helping
customers realize their “beauty, lifestyle and culture
dreams.” This is the first time since the inception of the
annual State of Innovation that a traditional cosmetics
company has been trumped by a technology-based
company, yet another example of an organization (LG)
that’s spreading its wings into tangential areas.
In the Make-up subsector, L’Oreal leads the pack with more
than twice as many inventions (1,636) as the next nearest
innovator, KAO (776). This continues L’Oreal’s leadership
streak in Make-up, which it has consistently dominated
since we’ve been tracking the field.
Asia continues to have a strong foothold in this sector, with
Japan leading the way. Germany has the most significant
presence in Europe, as more chemical companies branch
into cosmeceuticals. In the US, it’s a combination of
consumer-product and chemical companies that are
driving beautification.
Brazil once again takes the top spot in terms of cosmetics-
related scientific research, with the University of Sao Paulo
and State University of Campinas taking the first and
eighth spots in terms of research output, respectively.
This perhaps isn’t a huge surprise as Brazil is also among
the top five nations in the world in terms of the overall
number of aesthetic plastic surgeries performed annually.9
There’s no doubt about it: our socially connected world,
technology, nano-particles, new molecular entities and
the accessibility of new treatments are driving a boom
in beautification. The prospects are ripe for this sector to
continue its upward climb. We may not all be look-alikes
for Jennifer Aniston, recently named the 2016 World’s
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

REUTERS/ISSEI KATO

2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 31REUTERS/ALESSIA PIERDOMENICO
FOOD, BEVERAGE TOBACCO
If history repeats itself, can developing nations change health
outcomes and still be the latest frontier for
Tobacco and Beverage innovation?

2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 32
TOBACCO OUT-INNOVATES
FOOD AND BEVERAGES
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
“CME Group, Dow Chemicals and Philip Morris are companies
with strong fundamentals…Philip Morris is seeing good
demand for cigarettes and enjoying healthy margins as its
business looks stronger than ever…If you are looking for
strong dividend payers, these companies may be worth
a second look.”11
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.
2016 will be the year when consumer demand for “real” food
starts to seriously take effect as a decreased appetite for GMO
and non-natural foods gains momentum. GMO may be the
way to go to make certain staple crops have higher yields
and be more defect-resistant, however a growing number of
consumers are demanding healthy food products with clear
labeling. Similarly, the Beverage market continues to move
away from sugary drinks toward healthy drinks and teas.
“ 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/

FOOD, BEVERAGE TOBACCO OVERVIEW
%
Change
30% Meat 8,256 9,033 -9%
28% Brewing 7,662 6,479 18%
26% Bakery 7,267 6,841 6%
14% Tobacco 3,923 4,215 -7%
2% SugarStarch 667 689 -3%
Top 10 Global Innovators–Food, Beverage Tobacco (2015)
China Tobacco Hubei Ind Corp China 1122
Qingdao Xiuxian Foods Co. China 165
Philip Morris US 121
University of Guangxi China 118
Inst Agro Food Science Technology Chinese China 114
University of Zhejiang Ocean China 104
Hefei Bulaochuanqi Health Science Technology China 87
Wuhu Hongyang Food China 72
Anhui Xianzhiyuan Food China 69
Top 10 Brewing Innovators–Asia (2011-2015)
Harbin Shanbao Wine Ind China 166
Luzhou Pingchuang Technology China 155
Korea Food Research Institute S Korea 109
Rural Development Administration Korea S Korea 89
Sapporo Breweries Japan 83
Guangming Dairy Ind China 82
Suntory Holdings Japan 81
Kirin Japan 80
Asahi Breweries Japan 73
30%
28%
26%
14%
2%

Top 10 Brewing Innovators–Europe (2011–2015)
Novozymes Denmark 105
DSM Netherlands 89
Chr Hansen Denmark 45
Nestec Switzerland 40
Danone France 35
Krones Germany 32
IFP Energies Nouvelle France 21
GEA Brewery Systems Germany 18
Bayer Cropscience Germany 16
LeSaffre France 15
Top 10 Brewing Innovators–North America (2011–2015)
Danisco US 150
Butamax Advanced Biofuels US 31
Codexis US 22
Coskata US 22
BP North America US 21
US Secretary of Agriculture US 18
Poet Res Inc US 16
Monsanto US 14
Mascoma US 13
Most Influential Scientific Research Institutions in Food Science Technology
(2005 -2015)
Name Country # of Papers (WoS) Category Normalized Citation Impact
University of British Columbia Canada 431 1.93
Universiy of Lleida Spain 583 1.88
Polytechnic Institute of Braganca Portugal 316 1.79
University of Massachusetts System USA 824 1.73
Nanchang University China 415 1.66
Dresden University of Technology Germany 362 1.63
Rovira I Virgili Univeristy Spain 343 1.57
University of Melbourne Australia 306 1.55
University of Barcelona Spain 518 1.55
VTT Technical Research Centre of Finland Finland 314 1.54

Summary
While food-related innovation can be found in the
Biotechnology sector where GMO crops and engineered-
organism inventions are categorized, the Food, Beverage
Tobacco technology area covers inventions specific to the
manufacturing and composition of items outside of what is
genetically modified.
The sector remained predominantly flat over the last year,
growing by just 1 percent or about 300 inventions more
than the prior period. The largest growth was in the area
of Brewing, which bubbled over 18 percent to 7,662 unique
innovations last year, followed by Bakery, which puffed up
6 percent. Meat, Tobacco and Sugar Starch all
experienced declines.
The top 10 most active innovators in this category are all
from China except one: Philip Morris in the US. This makes
logical sense since China has the world’s largest population,
which it will need to find a way to sustain in the coming
decades as earth’s population nears 10 billion people,
and smoking is still an accepted habit in this culture.
China Tobacco Hubei Industries Corp. is the most
prolific innovator across the entire sector, with 1,122
unique inventions, followed by Qingdao Xiuxian Foods Co.,
Philip Morris, University of Guangxi and Inst Agro Food
Science Technology Chinese, all of which had 165 or fewer
inventions for the same period. This mix of organizations
gives a glimpse into their focus and priorities.
In terms of Brewing innovation, China again leads the
world, being home to the three most active Brewing
innovators globally: University of Jiangnan (217 inventions),
Harbin Shinbao Wine Industries (166 inventions), and
Luzhou Pingchuang Technology (155 inventions).
“ 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

2016 State of Innovation stateofinnovation.com Food, Beverage Tobacco 36REUTERS/DANIEL MUNOZ

2016 State of Innovation stateofinnovation.com Home Appliances 37
HOME APPLIANCES
Will our appliances still need us when the
Internet of Things takes over?
REUTERS/REGIS DUVIGNAU

TODAY’S CONNECTED HOME
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
homes are technologically linked in ways we couldn’t have
imagined a decade ago. And, it’s exactly this connectivity
that’s driving much of the innovation in Home Appliances.
The Internet of Things (IoT) has brought changes to the way
we live and what we expect. New technologies incorporated
into our homes, offices, clothing and appliances make them
smarter, more efficient and better managers of us.
“The IoT revolution will offer us opportunities and ease-of-use
we could have never imagined, but suddenly find ourselves
unable to live without…We need to give IoT time to thrive,
and identify the markets for it that make sense. The Internet
of Things is really about finding new places that make
sense for the Internet. Let consumers decide what their next
Internet will be,” said Shawn DuBravac, chief economist of the
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

HOME APPLIANCES OVERVIEW
%
Change
43% Kitchen 39,026 33,590 16%
34% Heating/Air Conditioning 30,552 24,316 26%
9% Household Cleaning 8,173 6,718 22%
7% Human Hygiene 6,717 5,203 29%
7% Laundry 6,402 5,659 13%
Top 10 Global Innovators–Home Appliances (2015)
Midea Group China 5,427
Zhuhai Gree Electric Appliances China 1,995
Haier Group China 1,315
Panasonic Japan 949
Mitsubishi Electric Japan 948
Samsung S Korea 736
BSH Hausgeräte Germany 697
LG S Korea 690
Hitachi Kucho System Japan 460
Daikin Kogyo Japan 446
Top 10 Kitchen Innovators–Asia (2011-2015)
Midea Group China 3,309
Mitsubishi Electric Japan 2,348
LG S Korea 2,234
Haier Group China 1,649
Joyoung China 1,538
Hitachi Kucho Japan 1,188
Sharp Japan 916
Toshiba Japan 907
Zhuhai Gree Electric Appliances China 880
43%
34%
9%
7%
7%

Top 10 Kitchen Innovators–Europe (2011-2015)
BSH Hausgeräte Germany 2,905
SEB Sweden 389
Electrolux Sweden 320
Nestec Switzerland 320
Philips Netherlands 318
Arcelik Turkey 253
Liebherr Hausgeraete Germany 237
Miele Cie Germany 234
Rational Germany 145
EGO Elektro-Geraetebau Germany 135
Top 10 Kitchen Innovators–North America (2011-2015)
Whirlpool US 696
Carrier US 220
Johnson Controls US 76
Trane Int. US 65
Conair US 64
Thermo King US 63
DuPont US 60
Kraft Foods US 53
Illinois Tool Works US 52
Most Prolific Scientific Research Institutions in Home Appliances (2005–2015)
University of Zaragoza Spain 113
University of California Berkeley US 63
National Cheng Kung University Taiwan 53
Chinese Academy of Sciences China 44
Tsinghua University China 43
Polytechnic University of Milan Italy 40
Waseda University Japan 36
University of Tokyo Japan 35
Tohoku University Japan 35
Kyoto University Japan 33

Summary
Home Appliances is cleaning house in terms of its ranking
on the innovation-activity barometer. The industry
experienced 21 percent year-over-year growth, with all
subsectors seeing double-digit jumps.
The most active subsector is Kitchens, however the largest
increase occurred in Human Hygiene, which was up 29
percent over the prior period. Human Hygiene items include
things such as a body scrub brush with a built-in soap
dispenser, hair-styling devices and nail clippers, to
name a few.
Asia is the undisputed leader in Home Appliance
innovation. All but one of the top 10 innovators reside there,
the lone wolf being BSH Hausgeräte, based in Germany.
China takes the top three spots with Midea Group, Zhuhai
Gree Electric Appliances and Haier Group, respectively.
In the Kitchen subsector, again Asia dominates, with Midea
Group (China) and Panasonic (Japan) being the most active
globally. The world’s third most active Kitchen innovator
is BSH Hausgeräte (Germany), followed by Mitsubishi
Electronics Home Appliances (Japan) and LG Electronics
(South Korea).
Asia is also home to 70 percent of the world’s top 10 most
prolific scientific-research institutions with a focus on home
appliances. Japan leads with four, followed by China with
two and Taiwan with one. But the most active in terms of
research-paper out by far is the University of Zaragoza in
Spain (113 papers) and the University of California Berkeley
(63 papers).
There is no shortage of videos that portray what the future
home may look like. If they are any indication of what’s
to come, this sector is sure to continue seeing increases
in innovation as the world is technologically modernized.
June and Ward Cleaver would be astonished to see what a
difference 50-plus years can make.
“ Our objectives are to overcome scientific and technological barriers in order to
develop innovations that can be used by the industry to create wealth and jobs
and to promote the emergence of a sustainable energy mix. Our innovation model
is underpinned by dual know-how: strong knowledge of the market needs and a
scientific approach of the highest level. Beyond science, we take into account the
economic, societal and environmental constraints associated with the development
of any innovation.”
—Didier Houssin, Chairman CEO, IFPEN (IFP Energie Nouvelles)

2016 State of Innovation stateofinnovation.com Information Technology 43
INFORMATION TECHNOLOGY
From the cloud to computers and blockchain,
this is the neural net of technology.

PUSHING THE BOUNDARIES OF WHAT
WE THINK IS POSSIBLE
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
pushing IT boundaries. It’s expected that at least half of IT
spending will be cloud-related in the next two years, with it
reaching 60 percent of all IT infrastructure and 60 -70 percent
of all software, services and technology spending by 2020.14
Add to these technological trends things such as
cognitive computing, artificial intelligence, virtual reality
and blockchain, among many others, and it’s clear why IT is
the place to be. It’s the underpinning and connective tissue of
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

INFORMATION TECHNOLOGY OVERVIEW
%
Change
82% Computing 387,097 340,386 14%
7% Other Peripherals 33,148 29,550 12%
5% Printers 24,752 23,359 6%
3% Smart Media 13,523 13,494 0%
2% Screens 8,112 7,692 5%
1% Scanners 4,471 4,510 -1%
Top 10 Global Innovators–Information Technology (2015)
State Grid Corp China China 7,479
Canon Japan 6,370
IBM US 4,205
Ricoh Japan 3,539
Google US 3,164
Huawei China 2,799
Lenovo China 2,798
LG S Korea 2,521
Tencent Technology Shenzhen China 2,418
Top 10 Smart-Media Innovators–Asia (2011-2015)
Toshiba Japan 646
State Grid Corp of China China 630
Toppan Printing Japan 557
ZTE China 369
Panasonic Japan 342
Dainippon Printing Japan 332
Sony Japan 324
NEC Japan 278
Hon Hai Precision Industry Co Taiwan 274
82%
7%
5%
3% 2% 1%

Top 10 Smart-Media Innovators–Europe (2011-2015)
Giesecke Devrient Germany 252
Gemalto Netherlands 204
Siemens Germany 201
NXP Netherlands 171
Nokia Finland 127
Ericsson Sweden 115
STMicroelectronics Switzerland 110
Oberthur France 109
Merck Germany 94
Infineon Germany 88
Top 10 Smart-Media Innovators–North America (2011-2015)
Sandisk US 228
IBM US 225
Qualcomm US 225
Apple US 223
Broadcom US 185
Micron US 166
Intel US 153
Microsoft US 103
BlackBerry US 101
Google US 96
Most Influential Scientific-Research Institutions in Computer Science (2005–2015)
Institution Country # of Papers (WoS) Category Normalized Citation Impact
Technical University of Czestochowa Poland 362 4.25
Wellcome Trust Sanger Institute UK 392 4.25
European Molecular Biology Lab Germany 675 3.80
Stanford University US 5,107 2.77
California Institute of Technology US 1,976 2.76
Ecole Normale Superieure, Paris France 721 2.70
Massachusetts Institute of Technology US 6,287 2.67
University of California Berkeley US 4,804 2.60
University of California Los Angeles US 3,627 2.56
University of South Wales UK 339 2.53

Summary
Information Technology is the engine behind much of the
innovation happening across many sectors. That’s why
IT continues to dominate as the largest technology area
covered in the State of Innovation, as has been the case
since this publication’s inception, and comprises 31 percent
of the overall activity volume with nearly 430,000 unique
inventions just last year.
The companies leading the top 10 in the global IT pack are
predominantly from Asia: China, Japan and South Korea,
with just two outsiders: IBM (US) and Google (US). The
world’s leading three innovators are State Grid Corp of
China (China), Canon (Japan) and Samsung (South Korea).
Each of these leaders’ activity is significant, with thousands
of unique inventions annually.
Computing is by far the most active subsector, comprising
82 percent of IT’s overall activity. This includes inventions
to see through walls (Vayyar), etch 3-D printed logos into
almost any surface (Glowforge), charge smartphones
at stations (NRG-Go) and uniquely light objects to
photograph them in high detail.15
In the Smart Media subsector, Samsung is the clear
frontrunner with more than twice as many unique
inventions as its nearest competitor: Toshiba. Giesecke
Devrient leads in Europe and Sandisk in the US, but with
much less overall activity than their Asian counterparts.
Academic and scientific research in computer science has
a more global footprint, with Asian institutions interestingly
absent from the world’s top 10 in scholarly research. Poland
and the UK are home to the most impactful institutions:
Technical University of Czestochowa and Wellcome Trust
Sanger Institute, respectively, however the Technical
University of Czestochowa has slightly fewer overall papers,
making them collectively more impactful than Wellcome’s.
“ 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

2016 State of Innovation stateofinnovation.com Information Technology 48REUTERS/SCOTT AUDETTE

2016 State of Innovation stateofinnovation.com Medical Devices 49REUTERS/DMITRY NEYMYROK
MEDICAL DEVICES
The support infrastructure of the healthcare industry, these varied
devices keep physicians and patients thriving and ticking.

2016 State of Innovation stateofinnovation.com Medical Devices 50
PUMPING HARD TO KEEP US PUMPING
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
the hardware of the medical and health industry, much like
semiconductors are the hardware of electronic gadgets.
Humans, as a whole, literally can’t live without them in the
appropriate situations.
It may not be much of a surprise then that the Medical Device
sector is alive and healthy. In developed nations, it’s a part
of daily life for many. With aging populations and growing
chronic medical devices, they’re essential. For the developing
world, they play an important role in the transformation to a
developed economy.
Medical device companies have a unique opportunity to
collabovate and partner with technology and software
businesses to marry their data insights with new solutions
and provide valuable views to physicians and patients alike.
Luckily for all of us, the sector is pulsing.
“ A host of medical device companies, including frontrunner Medtronic, have filed
patents and are in the process of developing an artificial pancreas, with the first
system expected to be available for use by type 1 diabetics sometime in 2017.
This unique closed-loop system consists of an insulin pump, a continuous glucose
monitor placed under the user’s skin, and advanced control algorithm software
embedded in a smartphone that intuitively signals how much insulin the pump
should deliver to the patient. This system essentially takes the patient out of the
diabetes management equation via the automation of the insulin regulation and
injection process, which should greatly improve outcomes for these people.”
—Holland Johnson Executive Editor, Medical Device Daily

MEDICAL DEVICES OVERVIEW
%
Change
33% Diagnosis, Surgery 45,112 36,929 22%
30%
Sterilizing, Syringes,
Electrotherapy
41,528 31,898 30%
20%
Medical Aids,
Oral Administration
27,186 18,694 45%
17% Dentistry, Bandages, Prosthesis 22,490 19,250 17%
Top 10 Global Innovators–Medical Devices (2015)
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
Top 10 Diagnosis-Surgery Innovators–Asia (2011-2015)
Olympus Optical Japan 3,246
Fujifilm Japan 2,830
Toshiba Medical Japan 2,682
Canon Japan 1,862
Terumo Japan 1,020
Hitachi Medical Japan 913
Hoya Japan 807
Konica Minolta Japan 796
Seiko Epson Japan 693
Source: Thomson Reuters Derwent World Patents Index
33%
30%
20%
17%

Top 10 Diagnosis-Surgery Innovators–Europe (2011-2015)
Siemens Germany 2,850
Philips Netherlands 1,861
Warsaw Orthopedic Poland 400
Aesculap Germany 328
Smith Nephew UK 305
Zeiss Meditec Germany 281
Biosense Webster Israel Israel 264
Storz GmbH KG Karl Germany 264
Roche Diagnostics Switzerland 217
Biedermann Technologies Germany 150
Top 10 Diagnosis-Surgery Innovators–North America (2011-2015)
Covidien US 2,353
General Electric US 1,716
Boston Scientific SciMed US 1,125
Ethicon Endo-Surgery US 1,073
Medtronic US 1,056
Depuy Synthes US 769
St Jude Medical US 417
Cook Medical Technologies US 412
Intuitive Surgical Operations US 379
Abbott Diabetes Care US 368
Nellcor Puritan Bennett US 346
Most Prolific Scientific Research Institutions in Medical Devices (2005–2015)
Name Country # of Papers (WoS)
US FDA US 219
Harvard University US 190
University of Pennsylvania US 101
University of Michigan US 93
Stanford University US 90
Duke University US 88
University of Minnesota US 85
Massachusetts Institute of Technology US 80
Brigham and Women’s Hospital US 72
University of North Carolina US 71

Summary
Following the reported 6 percent year-over-year decline in
Medical Devices from the prior period, innovation in this
area got a shot in the arm to become the most active of
all technology sectors covered. It had the largest year-
over-year increase, 27 percent, and all of its subsectors
had double-digit growth, with Medical Aids Oral
Administration seeing the largest increase: 45 percent.
Japan is home to 40 percent of the world’s top 10 Medical
Device companies, including the world leader Olympus.
China and South Korea also have their hands in this sector,
with the Fourth Military Medical University and Samsung
Electronics, respectively. Europe and the US also make
contributions to the global top 10, with two and three
innovators each, respectively.
In the Diagnosis Surgery subsector, Japan has 90 percent
of the top 10 innovators in Asia, demonstrating the nation’s
proclivity in this field. South Korea’s Samsung is the only
non-Japanese company in that top 10. Germany is the clear
leader in Europe, with 60 percent of the top 10 companies,
and the US takes all of the top spots for North America,
with Covidien at the top followed by General Electric and
Boston Scientific.
Medtronic completed its acquisition of Covidien in 2015,
so their innovation activity for this period was reported
separately. Their combined total output is more than 3,400
inventions, however, making them the overall global leader
in Diagnosis, Surgery, even over Japan’s Olympus, with
3,246 unique inventions.
All of the top 10 most prolific medical device research
institutions are from the US, with the FDA at the top
followed by Harvard and the University of Pennsylvania.
It’s interesting that despite Japan’s leadership position in
innovation, it doesn’t rank in the top 10 of the most prolific
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

2016 State of Innovation stateofinnovation.com Medical Devices 54REUTERS/ALY SONG

2016 State of Innovation stateofinnovation.com Oil Gas 55REUTERS/WOLFGANG RATTAY
OIL GAS
Fossil-fuel-based products emit harmful greenhouse gases.
Can we make the transition to environmentally
friendly alternatives to meet governmental goals?

2016 State of Innovation stateofinnovation.com Oil Gas 56
COP21 CREATES GLOBAL CHALLENGE FOR
ENERGY INNOVATORS
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
to power the planet and reduce our dependence on fossil
fuels. It’s essential that we find more environmentally friendly
sources of energy without harmful greenhouse gas emissions.
Could Oil Gas bellwethers hold the answer?
Corporate quarterly-earning conference calls convey the
toll of the state of today’s industry, with plunging prices and
decreasing demand. Exxon Mobil reported a 58 percent
decline in its 2015 third-quarter profit over the same period
a year earlier;16
Shell’s quarterly profit dropped by 70
percent;17
and Total in France announced a 69 percent
decline,18
to name a few.
Nevertheless, the sector continues to innovate. Some of the
innovation has been related to finding new ways to extract
energy from traditional sources, such as the process involved
in hydraulic fracturing, or ways to mitigate carbon emissions
from existing oil-extraction methods. The big question on
many analysts’ minds, however, is whether or not the large
Oil Gas players will be able to find sustainable solutions
to the COP21 challenge, via RD 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

OIL GAS OVERVIEW
%
Change
64%
Exploration, Drilling,
Production
18,086 15,589 16%
32% Fuels and Other Products 9,224 8,459 9%
3% Transportation and Storage 864 658 31%
1% Refining 241 183 32%
Top 10 Global Innovators–Oil Gas (2015)
Sinopec China 1,991
Petrochina China 1,982
Halliburton US 940
China National Offshore Oil China 455
Schlumberger US 378
Baker Hughes US 288
PRAD Research Development US 272
University of China Petroleum China 239
Toyota Japan 219
Tatneft Stock Russia 189
Top 10 Petroleum Natural Gas Exploration Innovators–Asia (2011-2015)
Sinopec China 7,612
Petrochina China 7,245
China National Offshore Oil China 1,798
University of China Petroleum China 803
University of Southwest Petroleum China 675
Nippon Oil Japan 294
University of Northeast Petroleum China 251
Toyota Japan 232
Beijing Sany Heavy Machinery China 227
Daewoo Shipbuilding Marine ENG CO S Korea 195
64%
32%
3% 1%

Top 10 Petroleum Natural Gas Exploration Innovators–Europe (2011-2015)
Tatneft Stock Russia 903
Shell Oil Netherlands 666
Saudi Arabian Oil Co Saudi Arabia 468
IFP Energies Nouvelles France 371
BASF Germany 311
TOTAL SA France 198
BP UK 160
Statoil Petroleum Norway 125
Linde Germany 113
Welltec AS Denmark 113
Top 10 Petroleum Natural Gas Exploration Innovators–North America (2011-2015)
Halliburton Energy Services US 2,848
Schlumberger Technology US 1,905
Baker Hughes US 1,452
PRAD Research Development US 1,256
Exxon Mobil US 637
UOP US 619
Chevron US 435
National Oilwell Varco US 329
Weatherford/Lamb US 308
Smith Int US 223
Most Influential Scientific Research Institutions in Oil Gas (2005-2015)
Imperial College London UK 119 4.57
United States Department of Energy US 102 2.89
Stanford University US 191 2.65
University of Texas Austin US 339 2.09
Delft University of Technology Netherlands 108 1.93
Norwegian University of Science Technology Norway 149 1.81
Tallinn University of Technology Estonia 170 1.72
Heriot Watt University UK 154 1.63
Texas AM University US 338 1.52
University of Oklahoma US 176 1.50

Summary
The sector’s innovation pace ignited beyond the prior
period, jumping up 14 percent overall, with Refining and
Transportation Storage seeing the largest subsector
jumps of 32 and 31 percent, respectively.
China leads the world’s innovation activity taking the top
two spots globally. Sinopec and Petrochina rank first and
second, respectively. China National Offshore Oil is fifth.
The US is the next most active region with Halliburton,
Schlumberger, Baker Hughes and PRAD Research
Development making the top 10 list.
In the subsector Exploration, Drilling Production, China
again dominates, with 80 percent of the top 10 for Asia,
including the same three innovators as above securing the
first three positions. Japan rounds out the remaining two in
the top 10 with, interestingly, Toyota as part of the mix.
Europe and the Middle East feature an eclectic mix in their
top 10, comprising Russia’s Tatneft Stock in the top spot,
followed by eight others from Europe and one from Saudi
Arabia. UK, France, Germany, the Netherlands, Norway and
Denmark comprise the European contingent. Halliburton
Energy Services is the leading US Oil Gas innovator for
Exploration, Drilling Production, and is third globally
overall in volume for this category.
The Imperial College of London is the most influential
scholarly research institution in the Oil Gas sector,
followed by the US Department of Energy and Stanford
University. Imperial’s department of Earth Science and
Engineering has a Petroleum Engineering group that does
significant industry-funded research, which can be found
on its website: imperial.ac.uk/engineering/departments/
earth-science/research/.
“ 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

2016 State of Innovation stateofinnovation.com Oil Gas 60REUTERS/LUKE MACGREGOR

2016 State of Innovation stateofinnovation.com Pharmaceuticals 61
PHARMACEUTICALS
Do you know who makes your medication and where it’s from?
You might be surprised how much comes from Asia.

CHANGING DYNAMICS STEER INDUSTRY
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
concoction featuring an increased focus on rare diseases,
ongoing development of more convenient Fixed Dose
Combination (FDC) regimens and the continuation of the
conflict between price versus access to medicines. These,
alongside new treatments involving bio-organisms, several
new vaccines (such as for malaria and dengue fever) and
immune-therapies have given the sector a burst of adrenaline.
Collabovation is a prerequisite for future pharmaceutical
growth in order to meet the health and drug needs of a
larger population, especially in developing nations, and to
ensure the longevity of an aging demographic as well. RD
models will increasingly shift to involve partnerships between
pharmas and either their suppliers or partners, allowing each
party to focus on its respective area of expertise. Testing of
“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 OVERVIEW
%
Change
63% Organics 88,116 85,679 3%
22% General 30,320 26,774 13%
11% Heterocyclics 15,854 16,272 -3%
3% Inorganics 3,975 1,373 190%
1% Steroids 1,036 1,075 -4%
Top 10 Global Innovators–Pharmaceuticals (2015)
LG Household Healthcare S Korea 270
Foshan Saiweisi Pharma Technology China 266
Sanofi France 232
University of Shanghai Jiaotong China 225
CNRS France 223
University of Guangxi China 209
Top 10 Heterocyclics Innovators–Asia (2011-2015)
University of China Pharmaceuticals China 454
University of Nanjing China 312
Takeda Pharmaceuticals Japan 292
Shanghai Inst Pharma China 263
University of Shandong China 238
University of Fudan China 234
Foshan Saiweisi Pharma Technology China 229
Cadila Healthcare India 213
Hainan Weikang Pharma Qianshan China 212
63%
22%
11%
3%1%

Top 10 Heterocyclics Innovators–Europe (2011-2015)
Novartis Switzerland 499
Bayer Germany 427
GlaxoSmithKline UK 382
Boehringer Ingelheim Germany 364
Sanofi France 349
Janssen Pharmaceuticals Belgium 244
CNRS France 188
Merck Germany 176
Astrazeneca UK 134
Top 10 Heterocyclics Innovators–North America (2011-2015)
Merck Co. US 732
Bristol-Myers Squibb US 373
Abbvie US 361
Allergan US 282
Gilead Scientific US 228
Genentech US 200
Pfizer US 199
Vertex Pharmaceuticals US 172
Teva Pharmaceuticals US US 123
Most Influential Scientific Research Institutions in Pharmaceuticals (2005–2015)
Tianjin University China 325 4.97
Lundbeck Corporation Denmark 529 3.59
Gilead Sciences US 478 3.34
World Health Organization EU 316 2.53
University of Newcastle UK 450 2.37
University of the Chinese Academy of Sciences China 742 2.31
Howard Hughes Medical Institute US 477 2.28
Guy’s St. Thomas’ NHS Foundation Trust UK 762 2.21
Massachusetts Institute of Technology US 953 2.17
Tsinghua University China 579 2.16

Summary
Pharmaceuticals experienced 4 percent year-over-year
growth, with the most significant increase occurring in
inorganics, which jumped up by 190 percent, from 1,373
to 3,975 unique inventions for the period. Inorganics include
all non-carbon-based chemical compounds, featuring an
array of metallic compounds as well as those that
are synthesized in a chemical plant or lab.
Globally, China is the world’s leading region for
Pharmaceutical innovation with 50 percent of the top 10
pharmaceutical companies residing there: University of
Jiangnan, University of Zhejiang, Foshan Saiweisi Pharma
Technology, University of Shanghai Jiaotong and University
of Guangxi. The collabovation between the public and
private sectors is also clear in this industry, as all of
China’s representatives are from academia.
In the subsector for Heterocyclics, China again dominates
the top ten list in Asia with 80 percent of the organizations
in that area. Heterocyclics are classic compounds that have
atoms of at least two different elements as part of their
rings. Cadila Healthcare of India also makes the top 10
global innovator list within this area.
Merck, Roche and Novartis are the world’s three most
innovative organizations overall in Heterocyclic volume,
surpassing even China’s leading organizations in their
RD activity. Contrary to Asia, nearly all of the top 10
organizations in Heterocyclics in Europe and North America
are from the private, corporate sector.
The most influential top 10 scientific research organizations
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

REUTERS/CHAIWAT SUBPRASOM

2016 State of Innovation stateofinnovation.com Semiconductors 67
SEMICONDUCTORS
The lifeline of today’s technological devices,
semiconductors are the Digital Age organs that keep us
connected, informed, hopping...alive.

ASIAN CONDUCTORS
LEAD IN THE SPACE
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
profitability and the push for more environmentally friendly
solutions to power our future. Semiconductors have an
important role to play, however it will take the next
generation of innovation to bring them back to their heyday.
Intel recently announced plans to lay off 11 percent of its
workforce—up to 12,000 people.20
This comes on the tails
of other publicized layoffs from bellwethers like Samsung
Electronics, Marvell and others in the space.
While China may be earmarked as the epicenter of
Semiconductor growth for the near future, the global
Semiconductor space is evolving, moving to the next stage of
its lifecycle, and is ripe for creative inventors to apply them in
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/

SEMICONDUCTORS OVERVIEW
%
Change
40%
Semiconductor Materials
and Processes
54,907 56,827 -3%
29%
Memories, Film and Hybrid
Circuits
40,920 35,220 16%
27% Discrete Devices 37,771 38,571 -2%
4% Integrated Circuits 5,771 5,775 0%
Top 10 Global Innovators–Semiconductors (2015)
BOE Technology Group China 2,900
LG S Korea 2,884
Shenzen China Star Optoelectronics Tech China 1,701
Toshiba Japan 1,521
Taiwan Semiconductor Mfg Co Taiwan 1,424
Semiconductor Mfg. Int. Shanghai Corp China 1,405
IBM US 969
SK Hynix S Korea 873
Oceans King Lighting Science Technology China 872
Top 10 Semiconductor Materials Processes Innovators–Asia (2011–2015)
LG S Korea 5,878
Toshiba Japan 5,194
Semiconductor Mfg Int Shanghai Corp China 4,953
Taiwan Semiconductor Mfg Co Taiwan 4,836
SK Hynix S Korea 3,929
Renesas Electronics Japan 3,323
Tokyo Electron Japan 2,998
Sharp Japan 2,462
40%
27%
4%
29%

Top 10 Semiconductor Materials Processes Innovators–Europe (2011–2015)
Infineon Technologies Germany 1,508
Osram Opto Semiconductors Germany 1,085
STMicroelectronics Switzerland 1,011
Commissariat Energie Atomique France 644
ASML Netherlands Netherlands 614
Bosch Germany 608
Merck Germany 412
Zeiss Smt Germany 391
Soitec France 285
Fraunhofer Ges Foerderung Angewandten EV Germany 280
Top 10 Semiconductor Materials Processes Innovators–North America (2011-2015)
IBM US 5,307
Applied Materials US 1,855
Micron Technology US 1,629
GlobalFoundries US 1,057
Texas Instruments US 1,015
Intel US 881
Freescale Semiconductor US 844
Ase Group US 615
Advanced Micro Devices US 587
Intermolecular US 527
Most Prolific Scientific Research Institutions in Semiconductors (2005–2015)
Name Country # of Papers (WoS)
Chinese Academy of Sciences China 7,121
Russian Academy of Sciences Russia 3,566
University of Tokyo Japan 2,092
CNRS France 1,956
Tohoku University Japan 1,700
Osaka University Japan 1,695
University of California Berkeley USA 1,684
Nanyang Technological University Singapore 1,624
National Chiao Tung University Taiwan 1,504
Tokyo Institute of Technology Japan 1,334

Summary
Semiconductors hit a short circuit in the period ending
December 31, 2014 and showed a decline for the first time
in a number of years. Nevertheless, its path has been
somewhat corrected as it saw a 3 percent year-over-year
increase in activity, with Memories, Films Hybrid Circuits
jumping 16 percent, the most of any subsector. The largest
segment: Semiconductor Materials and Processes, however,
declined by 3 percent over the period.
Asia continues to lead in the overall Semiconductor
landscape, with Samsung Electronics taking the top
position and logging over 4,000 unique inventions in just
one year. LG and SK Hynix (both from South Korea) also
rank in the top 10 overall. China, Japan and Taiwan all also
place in the world’s top 10, with China taking four of the 10
slots, compared to just one each by Japan and Taiwan. IBM,
which previously held the number one position in this sector
globally, is now eighth. Samsung has 328 percent more
inventions annually than IBM. Europe does not even place
in the top 10.
Samsung also dominates the subsector category for
Semiconductor Materials Processes, with 45 percent
more volume than its nearest competitor, LG. Japan fares
well with 50 percent of the top innovators in this subsector.
Germany is the European leader in the Semiconductor
Materials Processes subsector with 60 percent of the
organizations in the world’s top 10. However, even with
Infineon at the top with 1,508 unique inventions over the
five years, Samsung still comes out on top in terms of its
output with 463 percent more activity than Infineon. Even
Japan’s Sharp, ranked tenth overall in Asia, is 63 percent
more active than the industry leader in Europe.
IBM takes the top US spot in this sub-category with 5,307
unique inventions over the five years, but that is still 40
percent fewer than Samsung.
In the scholarly research realm, Asia again leads with 70
percent of the top 10. China, Russia and Japan take the
top three spots globally. The EU and the US each have one
representative institution on the list of the most prolific
semiconductor research organizations.
Asia is the clear frontrunner in Semiconductor innovation
activity. Given the volume generated from that continent,
it’s evident that the region will be a force to reckon with and
the companies on this list are paving the way. The question
now becomes: how do these organizations morph to
address the next stage of electronic and renewable needs.
“ Marvell has a rich history of leadership in semiconductor innovation, and
innovation remains one of the core values of our company. Innovation means many
things to Marvell but at the heart of it, we continue to have a steadfast focus on
advancing the global semiconductor industry with cutting-edge technologies and
solutions. In collaboration with our service provider and OEM customers, we are
dedicated to helping them bring new electronic systems and devices to market that
ultimately improve the lives of consumers around the world.”
—Dr. Zining Wu, Chief Technology Officer, Marvell Technology Group

2016 State of Innovation stateofinnovation.com Telecommunications 73
TELECOMMUNICATIONS
There’s a swirling convergence of Telecoms activity,
from 5G to IoT and NFC.
OMG–let’s c if u r able 2 keep up–LOL.
REUTERS/DANIEL MUNOZ

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
limited and in order for Telecoms to really take off, more
spectrum is needed. The sector is being hit by a trifecta of
sorts involving increased usage and demand for storage,
decreasing rates/pricing and the lack of a far-reaching
spectrum infrastructure. However, spectrum auctions and
5G-technology development are poised to change this in the
not-too-distant future.
The sky’s truly the limit when it comes to Telecoms, and that
limit can and will be pushed as IoT becomes more pervasive,
customers demand fast and better accessibility, and new
technologies break old barriers. IoT, 5G, streaming services,
the expansion of wearables and the shift to software-based
networking solutions will shape the future of Telecoms to
come. There’s ample growth opportunity and this is definitely
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 OVERVIEW
%
Change
26% Mobile Telephony 74,493 77,477 -4%
25% Data Transmission Networks 71,623 69,614 3%
21%
Telephone Subscriber
Equipment
60,054 64,760 -7%
9%
Digital Information
Transmission
25,797 27,053 -5%
9% Telemetry Telecontrol 25,417 18,437 38%
6% Multiplex Multiple Access 15,633 16,256 -4%
2% Telephone Communications 6,855 7,003 -2%
2% Telephone Exchange Systems 5,610 5,954 -6%
Top 10 Global Innovators–Telecommunications (2015)
Huawei China 3,496
LG S Korea 2,795
State Grid Corp China China 2,585
ZTE Corp China 1,960
Qualcomm US 1,841
Ericsson Sweden 1,424
Sony Japan 1,129
NTT Japan 1,129
Fujitsu Japan 1,087
Top 10 Mobile Telephony Innovators–Asia (2011–2015)
LG S Korea 8,654
Sony Japan 5,095
Sharp Japan 4,627
Huawei China 4,131
ZTE China 3,998
NEC Japan 3,786
Kyocera Japan 3,661
Fujitsu Japan 3,209
26%
9%
21%
2%2%
6%
9%
25%

Top 10 Mobile Telephony Innovators–Europe (2011–2015)
Ericsson Sweden 3,873
Nokia Finland 2,918
Alcatel Lucent (Nokia) France 1,628
Nokia Siemens Finland 733
Sony Ericsson Sweden/Japan 651
Bosch Germany 552
STMicroelectronics Switzerland 471
Orange France 341
Vodafone UK 314
Infineon Technologies German 298
Top 10 Mobile Telephony Innovators–North America (2011–2015)
Qualcomm US 6,534
Apple US 3,576
BlackBerry Canada 2,933
Intel US 2,825
Microsoft US 2,721
Google US 2,571
IBM US 2,083
ATT US 1,735
Broadcom US 1,590
Motorola US 1,266
Most Impactful Research Institutions in Telecommunications (2005–2015)
Rice University US 323 4.68
University of California Berkeley US 792 3.25
University of Texas Austin US 1,130 2.85
New York University US 432 2.77
Swiss Federal Institute of Technology Zurich Switzerland 723 2.76
Carnegie Mellon University US 762 2.70
State University of New York Stony Brook US 339 2.67
Illinois Institute of Technology US 530 2.59
Princeton University US 650 2.53
Microsoft US 700 2.35

State of innovation Thomson Reuters 2016

State of innovation Thomson Reuters 2016

Recommended

Recommended

More Related Content

What's hot

What's hot (11)

Viewers also liked

Viewers also liked (20)

Similar to State of innovation Thomson Reuters 2016

Similar to State of innovation Thomson Reuters 2016 (20)

More from Dmitry Tseitlin

More from Dmitry Tseitlin (20)

Recently uploaded

Recently uploaded (20)

State of innovation Thomson Reuters 2016