Two insight-packed reports from IP Australia’s Office of the Chief Economist and research partners at the University of Queensland examine who is engaging with the patent system in Australia, how it is changing and what this means for Australian innovation.
The reports are the first two in a new series of reports from the Office of the Chief Economist, which will provide in-depth analysis into what drives the use of IP rights within Australia. A second series of reports soon to be released will share new research evaluating patent policy and practice in Australia.
Our expert research reveals how over the past two decades, the share of Australian firms that hold patents has increased significantly. The analysis shows there has been a shift in where innovation occurs in Australia from large corporate laboratories to specialist innovation firms.
SMEs lead the way
The reports highlight how small and medium enterprises (SMEs) are an increasingly important engine of innovation.
The number of SMEs who hold patents has increased five times faster than those without patents. Younger firms are more likely to file patents than more mature firms, indicating the importance of patents to the startup sector.
Our studies suggest that start-ups and SME patent-holding firms are operating as specialised knowledge-suppliers, generating IP that is often then acquired and commercialised by larger firms.
Working together to innovate
Findings from this research underline the importance of strategies that support the financing of SME innovation and foster industry collaboration in driving Australian innovation.
There is a strong link that exists between a firm’s likelihood to collaborate on innovation with other firms and universities and the firm’s earlier patenting activities.
Innovation in Australia tends to rely on external research and development (R&D) funding, rather than reinvestment of profits by a firm, and patent activity increases with externally derived R&D funding.