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Edition: U.S. Article Comments (0) Email Print Reprints Read Tropical Storm Karl hits Mexico, some evacuated 10:58am EDT FEATURE-Gold fever strikes mom and pop prospectors in US West 7:00am EDT Tea Party win hurts Republicans' Senate chances 10:09am EDT Japan intervening in FX during NY hours: source | Video 11:04am EDT Popularity can come at a price: getting flu first 14 Sep 2010 Shared Walking helps keep body and brain young 13 Sep 2010 Special Report: Blue-collar, unemployed and seeing red | Video 9:27am EDT B vitamins found to slow progression of dementia 09 Sep 2010 PRESS DIGEST - Thai newspapers - September 15 14 Sep 2010 Antibiotics mess up your stomach, U.S. study finds 13 Sep 2010 Watched Melting glaciers expose artifacts Tue, Sep 14 2010 Gaga crowned; Oprah's big trip Mon, Sep 13 2010 JLo on "Idol" Tue, Sep 14 2010 NYSE and AMEX quotes delayed by at least 20 minutes. NASDAQ delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here. While world slashed R&D in crisis, China innovated Tweet This Share on LinkedIn Share on Facebook Related News Wipro, Infosys see cautious spending on IT Mon, Sep 13 2010 UPDATE 2-India ban hits ZTE's Q2, resolution could boost H2 Thu, Aug 19 2010 Analysis & Opinion China’s economic model isn’t the answer for the U.S. Five numbers that will shape China’s future Related Topics Technology » Media » China » China Labor Unrest » By Laura MacInnis GENEVA | Wed Sep 15, 2010 8:44am EDT GENEVA (Reuters) - While businesses worldwide cut their research and development budgets in the economic downturn, China invested heavily in innovation and sought more patents and trademarks, a United Nations agency said on Wednesday. The World Intellectual Property Organization (WIPO) said U.S. applications for patents protecting new inventions were flat in 2008 and 2009, when recession made capital harder to access and customers harder to find. Filings for patents -- which permit inventors to profit from novel developments for a limited time -- dropped 7.9 percent in Europe and 10.8 percent in Japan last year, with filings from Germany, Britain and France also lower. But in China, a growing engine of the global economy, WIPO said patent applications jumped 18.2 percent in 2008 and another 8.5 percent in 2009. Chinese filings for trademark protection -- affording rights to logos or distinctive signs on an indefinite basis -- jumped 20.8 percent last year, when such applications fell 11.7 in the United States, 7.7 percent in Germany and 7.2 percent in Japan. "The post-crisis innovation landscape will invariably look different from that of a decade ago," WIPO Director-General Francis Gurry said in an introduction to the World Intellectual Property Indicators report. "China is moving up the value chain and rapidly increasing exports based on domestic innovation, so inevitably it is filing an ever-growing number of patent applications," the WIPO chief later told a news conference. WIPO Chief Economist Carsten Fink said China's ample cash reserves allowed it to continue financing innovation in a time when loans and venture capital were difficult to come by. "There is a tremendous pool of finance for domestic investment in R&D and industrial design," he said. RESEARCH AND DEVELOPMENT Gurry said the patent and trademark trends seen during the recession suggested plenty of momentum for developing countries. "While the strength of the recovery remains uncertain, there will likely be a continuing geographic shift of innovative activity toward new players, especially in Asia," he said. Beyond China, other emerging nations also sought to protect their innovations before the recovery, with double-digit growth in patent filings in Belize, Peru, Romania and Turkey in 2008. But in much of the rich world, the global downturn reduced corporate cash flows and ratcheted up business uncertainty, putting strains on research and development spending. General Motors slashed its R&D budget by 24.5 percent from 2008 to 2009, Toyota cut such spending 19.8 percent and Honda R&D spending dropped 17.7 percent, according to the WIPO report, citing U.S. Securities and Exchange Commission filings and annual reports. Some of the figures are for fiscal and not calendar years. Outside the auto sector, heavy machinery maker Caterpillar also decreased R&D spending 17.8 percent. Consumer goods group Procter & Gamble's R&D spending dropped 7.6 percent and competitor Unilever's cut R&E spending 3.9 percent. While some technology firms such as Hewlett-Packard and Motorola reduced their innovation spending, with decreases of 20.4 percent and 22.5 percent, respectively, others recorded a big boost in the peak of the crisis. ZTE, China's No. 2 telecoms equipment maker, boosted R&D spending 44.8 percent and Huawei Technologies spending jumped 27.4 percent. In the United States, Apple spent 20.2 percent more on R&D from 2008 to 2009 and Microsoft's spending rose 10.4 percent. WIPO said improved access to capital since late 2009 should help edge up investment in innovation as well as the number of patents sought for new inventions. But it warned a full rebound would take time. "The crisis is likely to have a lingering impact on (intellectual property) filing behavior in 2010 and 2011," the report concluded. (Additional reporting by Robert Evans; Editing by Ruth Pitchford) Technology Media China China Labor Unrest Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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