© Poh Kam Wong
Enhancing Hong Kong’s Innovation System:
Is There a Role for IP Policy?
Poh-Kam Wong
Professor, Business School & LKY School of Public Policy
Director, Entrepreneurship Centre
National University of Singapore
1
© Poh Kam Wong
Scope of IP Policy
• Protecting and enforcing IP rights
– Raising awareness & education
– Developing legislative framework & enforcement institutions
• Promoting the creation of IP and facilitating their commercial exploitation
and market transactions
– In addition to promotion of R&D activities
– Supply stimulation, e.g.
• subsidies for patent application expenses
• using patent output as a performance measure of public R&D institutions
• SBIR policy in the US mandating the allocation of certain % of R&D
budget on exploring commercialization of IP
– Demand stimulation & market transaction facilitation, e.g.
• incentivising SMEs to license-in & exploit IP
• promoting the development of intermediary industries (IP professional
services, entrepreneurial financing institutions)
2
© Poh Kam Wong
Development of IPR Protection Policy
• Since 1997, HKSAR has developed a relatively
comprehensive legal framework for protecting intellectual
property rights (IPR), and is a party of all major
international IP conventions
• In terms of institutional development, the IP Department of
HKSAR (created in 1990) has also been relatively efficient in
terms of creating IP awareness & providing IP administrative
infrastructure, while the Customs & Excise Dept (CED) has
stepped up IPR enforcement
• While the IPR environment of HKSAR has thus improved
over the last 10 years, other economies like Korea, Singapore
and Ireland have achieved even greater improvement based
on a number of international benchmarking indices
3
© Poh Kam Wong
Patent Rights Index,
Economic Freedom of the World Report
Hong Kong
China
India
Japan
Korea
Singapore
US
Switzerland
Ireland
1960-75
1975-80
1995
2000
2.04
n.a.
1.68
3.24
2.87
2.37
3.86
2.84
2.69
2.46
n.a.
1.57
3.94
3.61
2.57
4.41
3.80
2.99
2.57
1.55
1.51
3.94
4.20
3.90
4.86
3.91
3.32
2.90
2.48
2.18
4.19
4.20
4.05
5.00
4.05
4.00
Note: The index is based on five categories: (1) coverage (the subject matter that can be patented); (2) duration (the length of protection);
(3) enforcement (the mechanisms for enforcing patent rights); (4) membership in international patent treaties; and (5) restrictions or limitations
on the use of patent rights.
Source: 1960-75, 75-90 -- W. G. Park, “Intellectual Property & Patent Regimes”, Economic Freedom of the World: 2001 Annual Report,
Chapter 4; 2000 -- W.G. Park & S. Wagh, “Index of patent rights”, Economic Freedom of the World: 2002 Annual Report, Chapter 2
4
© Poh Kam Wong
GCR IP Rights Protection Index, 2000-2008,
selected years
HK
China
India
Japan
Korea
Singapore
Taiwan
US
Switzerland
Ireland
2000
(out of 10)
2003
(out of 7)
2008
(out of 7)
6.3 (4.4)
3.22 (2.3)
3.27 (2.3)
7.55 (5.3)
5 (3.5)
7.62 (5.3)
n.a.
9.1 (6.4)
9.17 (6.4)
7 (4.9)
5.3
3.4
3.5
4.7
4.5
5.9
5.0
6.2
5.9
4.7
5.4
3.9
3.7
5.7
5.0
6.3
4.9
5.6
6.3
5.6
Notes: In 2000, the Likert scale is 1 to 10. Figures in bracket are re-scaled to the 1 to 7 range.
In 2004, the index is measured by responses to the following question: Intellectual property protection in your country (1 = is weak and
non-existent, 7 = is equal to the world’s most stringent).
The index in 2008 is measured by responses to the following question: Intellectual property protection and anti-counterfeiting measures
in your country are (1 = weak and not enforced, 7 = strong and enforced).
Source: Global Competitiveness Report, various years
5
© Poh Kam Wong
Development of IP Creation & Commercialization
Policies
• Relative lack of Strategic IP policy directions by the
Innovation and Technology Commission (ITC)
• IP policy in the Public University sector – by and large,
relative autonomy by individual universities to pursue its
own IP policies, with no central direction
• No policy to promote the development of IP professional
services industry
• Policy to promote the development of industrial designs
primarily limited to physical infrastructure
• Little policy emphasis on promoting the development of
entrepreneurial financing for IP-based ventures since the
dot-com crash
6
© Poh Kam Wong
Comparing HKSAR vs. Singapore
• Compared to HKSAR, the Singapore government has greater
policy emphasis on promoting IP creation &
commercialization
– Strategic visioning to become a regional IP creation &
commercialization hub
– Creation of Exploit Technologies (ETPL) to centralize IP
management and commercialization for all public R&D
institutions funded by A*STAR
– New National Research Foundation (NRF) program has an
explicit “academic entrepreneurship” promotion component
targeted at IHLs
– Explicit investment & talent attraction policy to promote IP
professional services by EDB; IP Academy created to promote
manpower development for IP professional services industry
7
© Poh Kam Wong
Did the more active IP Policy intervention by
Singapore matter?
• Comparative analysis of IP output pattern and performance
trends of HKSAR vs. Singapore in recent years
– focus primarily on patents granted by USPTO
– distinguishing utility patents vs. design patents
– quantity as well as quality indicators
– compare differences before mid-1990s vs. after
8
© Poh Kam Wong
Growth of Hong Kong and Singapore Patents,
1976-2007
Patents by HK inventors
HK
Foreign
Total
assignee
assignee
patents
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
17
25
27
21
44
57
67
64
58
56
106
80
91
116
109
144
123
154
180
7
8
3
15
9
13
6
1
20
17
11
20
23
27
55
79
50
43
58
Patents by Sg inventors
Sg
Foreign
Total
assignee
assignee
patents
No. of patents
24
2
33
3
30
0
36
0
53
1
70
3
73
6
65
4
78
4
73
7
117
3
100
10
114
5
143
16
164
6
223
17
173
13
197
19
238
29
1
2
3
0
5
2
0
2
0
7
2
6
7
12
15
14
28
42
50
3
5
3
0
6
5
6
6
4
14
5
16
12
28
21
31
41
61
79
Patents by HK inventors
HK
Foreign
Total
assignee
assignee
patents
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Total
218
218
207
306
337
422
426
394
419
347
327
411
351
5922
58
55
85
105
105
138
167
184
201
201
162
243
369
2538
1976-86
1986-96
1996-00
2000-07
20.1
7.5
18.0
-2.6
4.6
17.5
25.9
15.1
Patents by Sg inventors
Sg
Foreign
Total
assignee
assignee
patents
No. of patents
276
30
273
54
292
55
411
90
442
102
560
179
593
233
578
296
620
291
548
273
489
210
654
284
720
241
8460
2486
Annual growth rate (%)
17.2
4.1
8.8
33.5
19.7
34.9
3.7
4.3
51
70
77
91
105
120
154
237
273
320
255
299
294
2544
81
124
132
181
207
299
387
533
564
593
465
583
535
5030
7.2
42.7
14.4
13.7
5.2
37.9
24.6
8.7
Notes: Where a patent is assigned to more than 1 country, it is allocated according to the country of the first-named assignee
Patents by Hong Kong (Singapore) inventors include all patents with at least one inventor who is a Hong Kong (Singapore) resident
Unassigned patents are allocated to Hong Kong (Singapore) assignees
Source: Database of the USPTO and NUS Patent Database
9
© Poh Kam Wong
Growth of Hong Kong and Singapore Utility
Patents, 1976-2006
Patents by HK inventors
HK
Foreign
Total
assignee
assignee
patents
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
15
9
19
8
24
28
18
18
22
20
29
26
35
39
30
34
49
46
7
4
3
10
7
8
5
1
8
12
8
13
14
17
30
23
21
24
Patents by Sg inventors
Sg
Foreign
Total
assignee
assignee
patents
No. of patents
22
2
13
1
22
0
18
0
31
1
36
3
23
6
19
5
30
4
32
6
37
3
39
10
49
5
56
15
60
4
57
9
70
11
70
14
1
2
3
0
4
2
0
1
0
7
1
5
4
7
12
12
27
41
3
3
3
0
5
5
6
6
4
13
4
15
9
22
16
21
38
55
Patents by HK inventors
HK
Foreign
Total
assignee
assignee
patents
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Total
1976-86
1986-96
1996-00
2000-06
44
71
73
68
131
112
120
181
182
197
187
161
183
2179
31
36
36
32
61
68
88
92
98
99
110
78
131
1175
6.8
9.7
13.2
7.3
1.3
16.2
25.0
6.9
Patents by Sg inventors
Sg
Foreign
Total
assignee
assignee
patents
No. of patents
75
23
107
26
109
48
100
54
192
85
180
98
208
167
273
229
280
288
296
282
297
260
239
190
314
252
3354
2101
Annual growth rate (%)
5.3
4.1
11.4
33.5
17.5
36.6
7.1
7.1
48
45
57
67
70
99
107
144
217
241
284
242
264
2014
71
71
105
121
155
197
274
373
505
523
544
432
516
4115
7.2
42.7
17.1
16.2
5.2
37.9
27.1
11.1
Notes: Where a patent is assigned to more than 1 country, it is allocated according to the country of the first-named assignee
Patents by Hong Kong (Singapore) inventors include all patents with at least one inventor who is a Hong Kong (Singapore) resident
Unassigned patents are allocated to Hong Kong (Singapore) assignees
Source: Database of the USPTO and NUS Patent Database
10
© Poh Kam Wong
Growth of Hong Kong-Invented Utility Patents
vs Singapore-Invented Utility Patents 1976-2006
600
500
400
300
200
100
19
76
19
78
19
80
19
82
19
84
19
86
19
88
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
0
HK-invented utility patents
Sg-invented utility patents
11
© Poh Kam Wong
Utility Patenting Propensity, Selected Economies,
1985-2005
Japan
South Korea
Taiwan
Hong Kong
Singapore
China
India
USA
Germany
Ireland
Utility Patenting Propensity
(Patents per 100,000 population)
1985
1995
2005
10.59
17.56
24.1
0.1
2.62
9.2
0.91
7.83
22.9
0.59
1.72
3.4
0.47
2.0
9.8
0
0.01
0.05
0
0.01
0.05
16.7
21.2
25.9
8.73
8.48
11.91
0.88
1.83
4.81
12
© Poh Kam Wong
Comparison of Hong Kong and Singapore Patents
by Patent Type, 1976-2006
Utility
1976-85
1986-95
1996-00
2001-06
295
756
920
2087
1976-85
1986-95
1996-00
2001-06
48.0
39.2
40.9
48.7
Hong Kong
Design
Plant,
Reissue
No. of patents
318
1
1169
2
1326
1
2191
7
% of patents
51.8
0.2
60.7
0.1
59.0
0.0
51.1
0.2
Total
Utility
614
1927
2247
4285
56
346
912
3253
100.0
100.0
100.0
100.0
88.9
85.4
90.6
93.2
Singapore
Design
Plant,
Reissue
No. of patents
7
0
59
0
95
0
233
6
% of patents
11.1
0.0
14.6
0.0
9.4
0.0
6.7
0.2
Total
63
405
1007
3492
100.0
100.0
100.0
100.0
Note : Includes patents by at least one locally resident inventor and patents with the first-named assignee is locally listed
13
© Poh Kam Wong
Breakdown of Patents by Hong Kong and Singapore
Inventors1 (Local vs Foreign Assignee) (1976-2006,
Percentage)
Local assignee
Private Company
University
Govt/PRIC
Individual/Unassigned
Foreign assignee
Private Company
University
Govt/PRIC
Individuals
Total
1976-85
1986-95
1996-06
Hong Kong (% of patents)
81.5
75.7
69.9
49.5
55.5
48.2
0.0
0.3
3.7
0.0
0.0
0.1
32.0
19.9
17.9
18.5
24.3
30.1
17.8
23.6
29.0
0.0
0.3
0.3
0.0
0.0
0.5
0.7
0.5
0.3
100.0
100.0
100.0
Total
72.0
49.9
2.7
0.1
19.3
28.0
27.0
0.3
0.3
0.4
100.0
1976-85
1986-95 1996-06
Singapore (% of patents)
57.7
39.9
50.8
23.1
21.5
34.8
0.0
3.5
4.6
0.0
0.8
6.0
34.6
14.1
5.4
42.3
60.1
49.2
36.5
58.8
47.5
3.8
0.5
1.2
0.0
0.0
0.4
1.9
0.8
0.2
100.0
100.0
100.0
Total
50.0
33.6
4.4
5.5
6.4
50.0
48.3
1.1
0.3
0.2
100.0
Notes: 1Patents where at least one inventor is a Hong Kong (Singapore) resident
Unassigned patents are included in “individuals”
Allocation of assignee is based on first-named assignee
University patents include patents from companies formed to commercialize university technology
Source: Database of the U.S. Patent and Trademark Office (USPTO) and NUS Patent Database
14
© Poh Kam Wong
Citation Indices for Hong Kong and Singapore
Patents
Average Citations Received per Utility Patent by Hong Kong and
Singapore Inventors 1976-2006
1976-85
1986-95
1996-06
OVERALL
Hong Kong
10.9
11.0
4.0
5.8
Singapore
6.5
12.9
4.2
4.9
Note: Computed using citations up to 2006. Because of truncation effect, more recent patents tend to have lower forward citation
counts due to having less time to attract forward citations
Relative Citation Index, 1976-2005
Country of
Invention
Hong Kong
Singapore
19761985
0.847
0.652
All Patents
198619961995
2000
0.708
0.745
1.116
1.265
20012005
0.977
1.074
19761985
1.105
0.641
Utility Patents
198619961995
2000
0.943
0.938
1.110
1.277
20012005
1.153
1.187
15
© Poh Kam Wong
Citation Indices for Hong Kong and Singapore
Patents (contd)
High Impact Index1, 1976-2005
Country of
Invention
Hong Kong
Singapore
1Top
Using 1 digit Technology Class
1976- 1986- 199620011985 1995
2000
2005
1.272 0.879 1.204
1.244
0.000 0.970 1.616
1.268
5% most highly cited utility patents within 1-digit technology class
16
© Poh Kam Wong
Herfindahl Index of Technological Concentration,
1976-2006
1976-85
1986-95
1996-00
2001-06
Hong Kong Singapore
0.277
0.281
0.203
0.211
0.203
0.282
0.194
0.312
Notes: Nationality of Patent is defined as having at least one inventor resident in the specified nation
Herfindahl Index computed using classifications at the IPC Section level, with 8 categories in total.
Sources: Computed from Database of the U.S. Patent and Trademark Office (USPTO) (various years) and the NUS Database of US Patents
17
© Poh Kam Wong
Comparison of Technology Class of Patents by
Hong Kong and Singapore Inventors, 1976-2006
100
7.2
90
80
19.8
25.0
37.1
39.7
15.4
70
60
50
37.5
21
12.8
32.4
24.1
4.0
27.4
20.4
3.5
5.7
27.1
20
10
46.8
13.9
40
30
9.1
33.2
3.2
4.4
9.7
7.9
8.6
0
HK
1976-85
Chemical
6.3
2.1
2.1
7.9
Sg
HK
Computers & Communications
14.8
25.3
14.7
14.2
1986-95
Drugs & Medical
Sg
8.4
7.5
HK
Sg
1996-06
Electrical & Electronic
Mechanical
Others
Note: Patents include those where at least 1 inventor is a Hong Kong/Singapore resident
Source: Database of USPTO (various years) and NUS Patents Database
18
© Poh Kam Wong
Top 20 Organizations with Hong Kong Patents1
No Companies
1
2
3
4
5
6
7
8
9
10
11
12
13
13
15
15
17
18
19
20
20
John Manufacturing Ltd.
Hong Kong Uni of Science & Technology
Vtech Industries, Inc. 2
One World Technologies Limited
Johnson Electric S.A. 3
Hayco Manufacturing Limited
Astec International Limited
Choon Nang Electrical Appliance
The Brinkman Corporation
Hong Kong Polytechnic University
World Wide Stationary Manufacturing Co.
SAE Magnetics (Hong Kong)
Gold Coral International, Ltd.
Solar Wide Industrial Limited
Rosalco, Inc.
Koninklijke Philips Electronics N.V. 4
STD Electronic International 5
Motorola Inc.
Goodway Electrical Company Ltd.
Alfa Technology Ltd.
Timex Corp 6
Patent Count
Cumulative
Country
1976- 1986- 1996 - 2001 - Total as at
1985 1995 2000 2006 end 2006
Hong Kong
9
170
115
41
335
Hong Kong
0
1
27
53
81
Hong Kong
0
17
37
21
75
Hong Kong
0
0
0
70
70
Hong Kong
1
49
13
2
65
Hong Kong
0
0
2
61
63
US
0
34
16
12
62
Hong Kong
0
3
16
36
55
US
0
8
2
42
52
Hong Kong
0
0
5
45
50
Hong Kong
0
5
21
22
48
Hong Kong
0
0
1
45
46
Hong Kong
0
0
0
45
45
Hong Kong
0
17
17
11
45
US
0
44
0
0
44
Netherlands
7
8
8
21
44
Hong Kong
0
38
4
1
43
US
0
11
22
9
42
Hong Kong
1
7
8
25
41
Hong Kong
0
0
30
10
40
US
3
1
20
16
40
1Patents
where at least one inventor is a Singaporean. The first assignee company is used to count patents which are assigned to more than one company.
Vtech Communications Ltd, Vtech Electronics Limited, VTech Telecommunications Limited, Vtechsoft Holdings Limited
3 includes Johnson Electric Engineering, Ltd, Johnson Electric Industrial Manufactory.
4 includes North American Philips Corp., U.S. Philips Corp.
5 includes STD Manufacturing Ltd., STD Plastic Industrial Ltd.
6 includes Timex Group B.V.
Source: NUS Patents Database
2Includes
19
© Poh Kam Wong
Top 20 Organizations with Singapore Patents1
No Companies
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
17
19
20
Chartered Semiconductor Manufacturing
Hewlett-Packard Company
Seagate Technology
National University of Singapore
Micron Technology Inc
Motorola Inc
Texas Instruments
2
Koninklijke Philips Electronics., N.V.
Institute of Microelectronics
ST Assembly Test Services
Matsushita Electric Industrial Co.
Agency for Science, Tech. & Research
STMicroelectronics
3
Tri-tech Microelectronics
Creative Technology
Advanced Micro Devices
Thomson SA
4
ASM International NV
Infineon Technologies
Molex Incorporated
Country
Singapore
United States
United States
Singapore
United States
United States
United States
Netherlands
Singapore
Singapore
Japan
Singapore
Italy/France
United States
Singapore
United States
France
Netherlands
Germany
United States
1976- 19961995 2000
14
190
23
52
0
15
12
35
0
0
24
47
18
42
10
15
1
18
2
1
3
24
0
0
2
17
3
49
0
9
0
9
15
10
0
0
0
0
26
7
Patent Count
20012006 Cum. 1986- 2006
581
785
141
216
200
215
115
162
135
135
34
105
37
97
63
89
62
81
78
81
49
76
57
57
38
57
4
56
46
55
43
52
20
45
41
41
41
41
5
38
1Patents
where at least one inventor is a Singaporean. The first assignee company is used to count patents which are assigned to more than one company.
3A company called Tri-tech Microelectronics was granted a total of 56 patents before filing for bankruptcy and entering liquidation in 1999.
US Philips Corp
4Includes ASM Technology Singapore
Source: Database of the U.S. Patent and Trademark Office (USPTO) (various years)
2Includes
20
© Poh Kam Wong
Trademarks Applications and Registrations with
USPTO
Fiscal Year
ending Sept
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
TOTAL
(1990 – 2007)
1990-1995
1996-2001
2001-2007
Trademark Applications filed
HK
Singapore
285
48
360
58
484
66
319
97
396
172
456
138
456
110
437
203
478
161
625
186
1,097
419
898
339
860
283
794
285
862
205
1,130
311
1,113
355
1,305
503
12,355
3,939
Trademarks Registered
HK
Singapore
82
9
83
10
130
17
175
28
160
23
127
33
168
45
163
60
169
49
146
34
194
44
267
76
288
82
387
95
391
102
290
100
373
110
424
134
4,017
Average Annual Growth (%)
9.9
23.5
9.1
14.5
25.2
9.7
6.4
6.8
8.0
1,051
29.7
11.1
9.9
21
© Poh Kam Wong
HKSAR vs. Singapore: Overall Findings
• utility patenting in Singapore has grown faster &
overtaken HKSAR in quantity and quality in recent years
• universities and public R&D institutions, as well as
subsidiaries of global high tech MNCs make greater
contributions in Singapore patenting vs. HKSAR
• higher level of technology specialization in high tech
clusters targeted by government in the case of Singapore
• trade-mark registration and design patents also growing
faster in Singapore, although HKSAR still leads
22
© Poh Kam Wong
Role of IP policy in HKSAR: Overall
Recommendation
• A case can be made for a more strategic role of the
government of HKSAR in formulating and implementing a
coherent set of IP creation and commercialization policies to
support the drive towards a more advanced innovation
system.
• While recognizing that the role of IP varies significantly
with the nature of technology fields and business sectors,
there should be a high-level strategic overview by ITC to
ensure that IP-related issues are taken into consideration in
implementing sector-specific innovation strategies.
• The strategic review exercise may be able to identify some
common IP issues that cut across technology and business
sectors.
23
© Poh Kam Wong
Recommendations I
• Promoting the development of HKSAR’s IP professional
services industry
– to serve not just HKSAR, but also China in general and the
Pearl River Delta (PRD) region in particular
– PRD (and China in general) will be significantly increasing
its innovative activities in the future, and hence will represent
major market growth potential for IP professional services
– HKSAR will risk being bypassed unless its IP professional
services industry is upgraded, and develops greater domain
expertise on China IP law
– Market opportunities for IP professional manpower
development & training – opportunities for HKSAR
universities/public institutions in addition to private sector
firms?
24
© Poh Kam Wong
Recommendation II
• Strengthening the role of the leading HKSAR universities
as IP creators and commercialization facilitators
– giving the universities more funding resources for IP
creation/commercialization activities (e.g. like Singapore
NRF’s innovation fund for universities)
– adaptation of US SBIR-like scheme to allocate
proportionate resources to IP commercialization activities as
a function of R&D funding (e.g. mandating 5% additional
funding for IP commercialization activities on top of public
R&D funding)
–using the universities’ IP management capabilities as a
leverage to access China’s much larger R&D manpower
base and potential sources for IP
–
25
© Poh Kam Wong
Recommendations III
• Promoting the development of HKSAR as an industrial
design industry hub
– Industrial design as a special form of IP
– HKSAR already has comparative advantage & regional
leadership in industrial design capabilities
– Potential for HKSAR to serve not just HKSAR companies,
but also China and the Asia-Pacific region
– Potential for universities in HKSAR to play a greater
educational role in industrial design, but need to go beyond
technical training to encompass design IP management &
commercialization/business expertise
26