Experts recommend US companies overcome their patent quantity over quality mindset when it comes to patents and innovation. For many companies, the extent of groundbreaking innovation is often demonstrated through the acquisition of patents. Evaluating research productivity typically involves assessing the number of inventions that have originated from a company’s research and development (R&D) capabilities, as indicated by the patent quantity filed. However, experts note that patent quantity alone does not guarantee quality. Many feel a comprehensive assessment of a company’s research capabilities should consider both the quantity and quality of patents. Having numerous patents of lesser value does not necessarily indicate higher productivity compared with having fewer patents of greater value. Furthermore, there may be a tradeoff involved, where companies prioritize securing patents of lesser value for quick wins rather than dedicating the necessary time, effort, and resources to achieve significant research breakthroughs.
Some experts believe that a focus on patent quantity can lead to several negative consequences. First, it can result in the release of subpar products or services that do not meet customer expectations. This can damage a company’s reputation and erode customer trust. Second, they point out that the pursuit of quantity often leads to a lack of true innovation, as companies might prioritize incremental improvements or minor tweaks to existing products rather than investing in groundbreaking ideas. Here is an opinion piece we found of interest relating to whether companies are now focusing on patent quality versus patent quantity for innovation.
Are US Companies Embracing Quality Over Quantity in the Patenting Race?
In an opinion piece for IAM Media, “Are US companies embracing quality over quantity in the patenting race?” Angela Morris, deputy editor, discusses a potential shift in the patenting strategies of US companies. Traditionally, there has been a focus on the quantity of patents filed, often as a measure of innovation and competitiveness. However, she notes there are indications that some companies are prioritizing the quality of patents rather than the sheer number. Morris believes companies are recognizing that the mere quantity of patents does not necessarily reflect the true value of their innovation or the potential for commercial success. Instead, companies are focusing on strategic patenting that aligns with their business goals and enhances their market position is becoming more prevalent.
As an example, Morris points out that in 2020, IBM shifted its patent strategy to move away from solely pursuing numeric patent leadership to adopting a more selective approach. According to Dario Gil, an IBM senior vice president, IBM’s new focus is on achieving significant advancements in specific areas such as hybrid cloud, data and AI, automation, security, semiconductors, and quantum computing. This shift required a well-balanced intellectual property (IP) strategy that incorporated patents, trade secrets, and collaborative “open innovation” R&D efforts involving both IBM teams and external peers. Gil emphasized the importance of collaboration over exclusivity as the means to drive technological progress, and he proposed that innovation should be evaluated based on its real-world impact rather than merely through the lens of patents. Read the full article on IAM Media.
Disclosure: Fatty Fish is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
The Fatty Fish Editorial Team includes a diverse group of industry analysts, researchers, and advisors who spend most of their days diving into the most important topics impacting the future of the technology sector. Our team focuses on the potential impact of tech-related IP policy, legislation, regulation, and litigation, along with critical global and geostrategic trends — and delivers content that makes it easier for journalists, lobbyists, and policy makers to understand these issues.
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