The 2024 report explores the pathways to innovation in Australia from idea to commercialisation. Many successful innovations today rely on collaboration between different parties, including universities, startups, and large established firms.
Australian firms, after patenting, are more likely to form collaborations such as joint R&D and joint commercialisation arrangements. Many innovations today start their life in university labs. Australian startups and spinouts that employ academic researchers are 2.4 times more likely than the average new firm to eventually receive a patent.
Small and medium enterprise are central to Australia’s innovation system. In recent decades, the number of SMEs that hold patents has increased at 5 times the rate of SMEs more broadly in the economy. IP rights such as patents and design rights facilitate technology transfer and licensing. By protecting innovators from copying, IP rights can also provide innovators the time to build commercialisation capability. Broad patents, for example covering more general discoveries, can spur investment within pioneer firms, as they seek to build on their own discoveries. Narrower patents, for more specific inventions or ideas, can allow others to build on or around those ideas.
In this year’s report we present a new study comparing Australian patents to patents granted for the same inventions overseas. The 2010s saw a decline in the share of Australian patents that are broader than their overseas equivalents. On this measure patents also became more consistent across technology fields. This likely reflects the benefits of increased cooperation between IP Australia and international IP offices.
Reflecting developments across jurisdictions, recent years have seen an increase in the share of Australian patents that are broader in some technology fields. This study is one example of how IP Australia is leveraging machine learning to evaluate and benchmark IP rights.
Australian firms, after patenting, are more likely to form collaborations such as joint R&D and joint commercialisation arrangements. Many innovations today start their life in university labs. Australian startups and spinouts that employ academic researchers are 2.4 times more likely than the average new firm to eventually receive a patent.
Small and medium enterprise are central to Australia’s innovation system. In recent decades, the number of SMEs that hold patents has increased at 5 times the rate of SMEs more broadly in the economy. IP rights such as patents and design rights facilitate technology transfer and licensing. By protecting innovators from copying, IP rights can also provide innovators the time to build commercialisation capability. Broad patents, for example covering more general discoveries, can spur investment within pioneer firms, as they seek to build on their own discoveries. Narrower patents, for more specific inventions or ideas, can allow others to build on or around those ideas.
In this year’s report we present a new study comparing Australian patents to patents granted for the same inventions overseas. The 2010s saw a decline in the share of Australian patents that are broader than their overseas equivalents. On this measure patents also became more consistent across technology fields. This likely reflects the benefits of increased cooperation between IP Australia and international IP offices.
Reflecting developments across jurisdictions, recent years have seen an increase in the share of Australian patents that are broader in some technology fields. This study is one example of how IP Australia is leveraging machine learning to evaluate and benchmark IP rights.
Published annually, the Australian IP Report presents the latest statistics and research on the use of registered intellectual property (IP) rights in Australia.
This year’s report explores the uses of IP in the innovation process, from invention (creating something new) to commercialisation (making it available for sale in the market).
Until the 1980s, much basic scientific research was conducted and developed into commercial applications in large corporate labs. Today there is greater specialisation, as described by American economist Professor Ashish Arora: Universities and public research organisations perform the bulk of basic research. Startups play a key role in identifying its commercial applications. Large firms often commercialise and scale the applications.1
IP rights remain a driver of innovation in corporate scientific research by helping firms to commercialise their innovations. However, IP rights have added significance in an innovation system which relies on linkages between different players, such as universities, startups and corporations. First, IP rights facilitate technology trade, allowing universities and startups to trade their ideas and access the commercialisation capabilities of others. Second, by protecting innovations from imitation, IP rights provide young and small firms the time often needed to build commercialisation capability.2
In 2023, Australia saw significant growth in applications for trademarks and design rights, design filings reaching a record level. Applications for standard patents and plant breeder’s rights fell slightly from their levels in 2022. However, Australian residents increased their filings across all the registered rights.
This year’s report also shows Australia's prominence in emerging technology fields such as clean energy generation and storage. Among 19 major economies, Australia is the second fastest growing destination for patent filings in this field.
Innovation is a key lever for raising overall welfare and wellbeing. The Australian IP Report offers insights into the dynamic interplay between IP rights, innovation and the broader economy.
Research insights
The first two chapters of this year’s report present new research by IP Australia and its research partners. Chapter 1 explores the links between patenting, collaboration and commercialisation by Australian firms. In Australia, patenting is linked both to research and development by universities and industry, and the exchange of know-how across firms and sectors. For example, patenting is linked to a firm’s propensity to collaborate – both its past in-sourcing of IP from partners, and its future propensity to form joint R&D and commercialisation arrangements.3
In many industries, a competitive environment is needed for technologies to improve over time, as companies vie for technological leadership. The scope of IP rights – for example whether they cover more specific or more general discoveries – determines their impact on investment and competition.
Broader patents can spur cumulative investment within pioneering firms, as they work to improve on their patented discoveries.4 Conversely, narrower patents reduce the likelihood that competitors will infringe a patent if they seek to build on or around patented technology or ideas.5
Chapter 2 reports on a new study which evaluates the scope of Australian patents compared to the scope of equivalent patents (for the same inventions) granted in the European Union and United States. The study demonstrates the potential for machine learning to create new opportunities to evaluate and benchmark IP rights and the impacts of policy reform.6
Australian IP outlook
IP data provides an important lens on economic activity from scientific and technological progress to commercialisation. In 2023, applications in Australia grew strongly for trade marks (+7.2% on their level in 2022) and for design rights (+11.5% to a record level).
While applications fell for standard patents (–2.4%) and plant breeder’s rights (–1.7%), filings by Australian residents increased across all the registered rights (Figure 0.1). In 2023, the global economy continued to confront the challenges of persistent inflation and rising interest rates.7 However, monetary policy shocks have a limited effect on domestic patenting in Australia, research by the Reserve Bank of Australia shows.8 Further, trade marks, used to launch new products and services, tend to increase with entrepreneurial activity.9 While for small firms the entry rate (the number of new businesses created relative to existing businesses in the economy) has generally tracked sideways over the last decade, it recovered in 2023 from a sharp fall in late 2022, adjusting for seasonal trends.10
Figure 0.1 At a glance: IP rights statistics, 2023
This year’s report includes a chapter on copyright by the Attorney-General’s Department, which develops Australia’s copyright policy. Within the creative and cultural industries, collaboration and licensing are significant drivers of economic value. For example, Australia’s games industry saw a 59% increase in revenue in 2021-22, enabled by increased collaboration between games developers and music workers. For Australian artists and creators, licensing their copyright material generated over $700 million in royalties paid through collecting societies in 2022-23.
International comparisons
Firms in the United States (US) are highly sensitive to monetary policy shocks in their patenting activity.11 Filings in Australia from the US fell across the registered rights in 2023. This has driven overall reductions in:
- new trade marks for science and technology services
- new design filings for computing equipment.
Conversely, growth in patent filings is sustained in technologies that are the focus of strategic competition between countries (e.g., semiconductors) and where Australia is a key destination market (e.g., clean energy technology).
Data for policy and decision makers
The analytics in this report are derived from IP Australia’s new open data product, IP RAPID. This provides information on IP applications in Australia spanning more than 100 years and refreshed weekly. The data is publicly accessible in a format suitable for researchers and updated weekly. IP Australia periodically revises its data and time series as more up-to-date or better-quality source data becomes available.
Now in its 12th year, the Australian IP Report offers a rich account of IP activity in Australia to inform engagement between government, industry, researchers and the wider community. We welcome you to join the conversation.
Office of the Chief Economist | chiefeconomist@ipaustralia.gov.au
- Arora, A., Belenzon, S., Cioaca, L. C., Sheer, L. & Zhang, H. (2023). The effect of public science on corporate R&D. NBER Working Paper 31899. Arora, A. and Belenzon, S. (2023). The changing structure of American innovation. NBER Reporter, No. 1, March 2023.
- Teece, D. J. (1986). Profiting from technological innovation: implications for integration, collaboration, and public policy. Research Policy, 15, 285-305. See also Arora, A., Belenzon, S., Marx, M. & Shvadron, D. (2021). (When) does patent protection spur cumulative research within firms? NBER Working Paper 28880.
- Menezes, F., Rampino, T. & Verreynne, M. (forthcoming). The Business Environment of Patenting Firms in Australia. IP Australia Economic Research Paper Series 15, The Commonwealth of Australia. Nguyen, K. (2024). Exploring innovation pathways: An insight into funding sources, collaboration networks, and complementary investments in Australia’s R&D firms. IP Australia Working Paper. The Commonwealth of Australia. Dobson-Keeffe, B. (2024). Employee mobility and startup characteristics: Impact on IP propensity and performance. IP Australia Working Paper.
- Arora, A., Belenzon, S., Marx, M. & Shvadron, D. (2021). (When) does patent protection spur cumulative research within firms? NBER Working Paper 28880.
- Merges, R. P. & Nelson, R. R. (1990). On the complex economics of patent scope. Columbia Law Review, 90(4), 836-916.
- Kollmann, T., Palangkaraya, P, Sarwar, A., Webster, E., Anglim, C. and Falk, M. (forthcoming). Raising the Bar reforms: Measuring the impact on relative patent scope. IP Australia Economics Research Paper Series 14.
- OCED (2023). OECD Economic Outlook, Volume 2023 Issue 2. https://www.oecd-ilibrary.org/economics/oecd-economic-outlook/volume-2023/issue-2_7a5f73ce-en
- Majeed, O., Hambur, J. & Breunig, R. (2023). Do monetary policy shocks and economic conditions impact innovation? Working Paper. Nolan, G., Hambur, J. & Vermeulen, P. (2023). Does monetary policy affect non-mining business investment in Australia? Evidence from BLADE. Reserve Bank of Australia Research Discussion Paper, RDP, 2023-09.
- Lyalkov, S., Carmona, M., Congregado, E., Millán, E. & Millán, J. M. (2019). Trademarks and their association with Kirznerian entrepreneurs. Industry and Innovation, 27(1–2), 1–10.
- Australian Bureau of Statistics. (2023, 22 August). Counts of Australian businesses, including entries and exits. https://www.abs.gov.au/statistics/economy/business-indicators/counts-australian-businesses-including-entries-and-exits/latest-release.
- Ma, Y. & Zimmerman, K. (2023). Monetary policy and innovation. NBER Working Paper 31698.