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HONORING THE WORLD LEADERSIN INNOVATIONFINDINGS AND METHODOLOGYOCTOBER 2013

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2 THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORS

IDEAS ARE WHAT POWER OUR ECONOMYWHEN WE INVEST IN THE BEST IDEAS BEFORE

ANYBODY ELSE DOES, OUR BUSINESSES ANDOUR WORkERS CAN MAkE THE BEST PRODUCTS

AND DELIVER THE BEST SERVICES BEFOREANYBODY ELSE.

-President Barack Obama

April 2, 2013

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The methodology used to determine theThomson Reuters 2013 Top 100 GlobalInnovators was developed by Thomson Reutersand peer reviewed by several leading IP-centricorganiations. While the fnal methodologyis proprietary, the ollowing overview oers acloser loo at the data used and how it wascalculated and analyed.

The Thomson Reuters Derwent World PatentsIndex (DWPISM), Derwent Patents CitationIndex, Quadrilateral Patent Index andThomson Innovation, the IP intelligence andcollaboration platorm, were utilied in theresearch and analysis. Comparative analysiswas done using the Thomson Reuters AdvancedAnalytics platorm, the single source or fnancialproessionals to turn inormation into action.

The criteria or the Thomson Reuters Top 100Global Innovator award are:

1. VOLUMEThis award ocuses on companies that areresponsible or generating a sieable amount oinnovation. All organiations with 100 or moreinnovation patents rom the most recent threeyears were included in our analysis. A uniqueinvention is defned as the frst publicationo a patent document in a new technology,drug, business process, etc. In DWPI, theseare called basic patents. DWPI providesa record o patents published by nearly 50patent issuing authorities worldwide to enable

a comprehensive picture o the innovationlandscape. Subsequent flings or the sameinvention are recorded as equivalents in DWPIand collated in patent amilies and, or thisanalysis, were not included.

2. SUCCESS

Patenting an innovation through one or morepatent ofces is expensive. Not all patentapplications pass through the examinationprocess and are granted. The success metricmeasures the ratio o published applications(those patents which are fled and publiclypublished by the patent ofce but not yetgranted) to granted patents over the most

recent three years.

3. GLOBAL

Protecting an invention in major world maretsis an indication o the signifcant value acompany places on its intellectual property. Thenumber o inventions that have quadrilateralpatents in their patent amilies, according tothe Thomson Reuters Quadrilateral PatentIndex, was calculated to create a ratio thatshows which companies place a high value ontheir portolios in major world marets. Thequadrilateral patent authorities comprise the

Chinese Patent Ofce, the European PatentOfce, the Japanese Patent Ofce and theUnited States Patent & Trademar Ofce.

4. INFLUENCE

The impact o an invention down the linecan be determined by looing at how oten itis subsequently cited by other companies intheir inventions. Through the Thomson ReutersDerwent Patent Citation Index database,citations to each organiations patents werecounted over the most recent fve years,

excluding sel citations.

METHODOLOGY

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top100innovators.com 5

Recent headlines show the current innovationlandscape in sharp relie. In a year that wasmared by volatile patent wars in the ultra-competitive smartphone space, a slow recoveryrom recession in the U.S. and Europe, and asteady increase in merger and acquisition activityamong multinationals, the innovation imperativehas been at the center o virtually every majorbusiness growth story.

The attention is warranted. Collectively, the 100organiations in our 2013 study outperormedthe S&P 500 by 4 percent in annual stoc pricegrowth and 2 percent in maret cap weightedrevenue growth. These organiations generatedmore than $4.5 trillion in annual revenue, nearlytwice the GDP o the United kingdom. The TopInnovators also added 266,152 new jobs over thecourse o the year, 0.81 percent higher than thenew job creation rate among constituents o theS&P 500. And, this years winners outspent theS&P 500 by 8.8 percent on R&D.

Following are some o the additional fndings inthis years study:

R&D Spending: The Top 100 GlobalInnovators spent U.S. $223.2 billion on R&Din 2012, outspending the S&P 500 by over8.8 percent. Comparatively, the U.S. spends$408.6 billion on R&D, Japan spends $141billion, France spends $49.9 billion andthe U.k. spends $39.5 billion. O this, theyrespectively dedicate the ollowing to R&D

in manuacturing-intensive industries: 70%percent , 87 percent, 84 percent and 73percent.

Geographical Hot Spots: North Americacontinued to lead in the number oorganiations it has on the list, with 46 thisyear, comprising 45 rom the U.S. and onerom Canada. Asia had the next highestnumber o Top 100 innovators, with 32,comprising 28 rom Japan, 3 rom S. koreaand 1 rom Taiwan. Europe contributed 22honorees, with the largest representationagain coming rom France (12), ollowed bySwiterland (4).

Pharma Industry Breaks Out: A recordnumber o pharmaceutical frms (3) madethe 2013 list o Top 100 Global Innovators,including Abbott Laboratories, Johnson &Johnson and Roche.

Most Innovative Industries: Thesemiconductor and electronic componentsindustry continued to lead in 2013, with 23

representative companies, a 28 percentincrease over the previous year and a64 percent increase since the programsinception. Computer hardware was the nextmost prolifc industry, with 11 companies. Theauto industry contributed 8 companies to theTop 100 list, up rom 7 last year, and up 167percent since the frst years numbers. Newto the list in 2013 is Nissan. The telecomand industrial industries each contributed 7companies this year.

Smartphone Patent Wars Drive New

Innovation: The intense competition in thesmartphone space is on clear display in thisyears Top 100 Global Innovators list, withthe major players in the smartphone patentwars present: Apple, Microsot, Samsung,Google and BlacBerry. This is the frst yearBlacBerry made the Top 100 Innovatorslist, driven by a 38 percent surge in patentflings between 2010 and 2011, and 17percent growth in patent flings between2011 and 2012. And, as the latest newsheadlines convey, Blacberry is leveraging its

intellectual asset portolio as it sees a buyer.CEO Chris Marlett o MDB Capital Groupvalued Blacberrys patents at between USD$2 and $3 billion.1

kEY FINDINGS & ECONOMICINFLUENCE

1 http://money.cnn.com/2013/09/24/technology/enterprise/blacberry-patents/index.html

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2 OECD (www.oecd.org/innovation/inno/researchanddevelopmentstatisticsrds.htm)

3 ibid

4 Wendy Schacht, The Bayh-Dole Act: Selected Issues in Patent Policy and the Commercialiation o Technology, U.S. Congressional Research Service,December 3, 2012.

5 OECD, Innovation Policy and Perormance: A Cross-Country Comparison.http://www.oecd.org/sti/inno/innovationpolicyandperormanceacross-countrycomparison.htm.

Although the 2013 Top 100 Global Innovatorsstudy is noteworthy or all o the names thatare included on the list, one cannot ignore theconspicuous absence o some others. Chieamong these is mainland China, which did notcontribute any Top 100 winners or the third year ina row. At frst blush this may seem strange, givenChinas role as the world leader in patent volume.However, the omission o China shines a spotlight

on the critical role that economic policy andgeopolitical inuences can have on innovation.

In the case o China, even though hundreds othousands o new patent applications are fledthere each year, the vast majority o them are onlyprotected domestically.In act, less than 10 percento the inventions originating in China are protectedoutside o that country. This pervasive, nationwideapproach to intellectual property protection andinnovation has severely limited the regions globalinuence in the Top 100 Global Innovators study.

Another notable absence is the lac orepresentation on the list rom Uk-basedorganiations. This is the second year in whichthe United kingdom is missing, a act that isunderscored by the low R&D investment asa percent o GDP in that region. The Unitedkingdom was the lowest o the U.S., Japan andFrance in R&D spend through 2010.2 The trend isalso reective o the evolution o the U.k. economyaway rom manuacturing and toward a moreservice-sector orientation, with a heavy relianceon fnancial businesses. The U.k. government has

made some recent strides to address this issue,notably introducing its Patent Box legislationearlier this year, which aims to cut the corporatetax rate or income derived rom patentedtechnologies. Whether or not that step will have asignifcant impact on overall patent activity in theU.k. will tae several years to fnd out; this will beclosely reviewed in uture installments o the Top100 Global Innovators study.

The U.k.s absence on the list shines even brighterwhen juxtaposed against the perormance o itsneighbor to the south. France again contributedmore names to this years Top 100 GlobalInnovators list than any other European nation.This undoubtedly has to do with the countrysR&D investment, which was nearly $50 billion oits gross domestic product in 2010.3 Businessesin France spent 53 percent more on R&D than

their counterparts in the U.k., despite the act thatFrances economy is only 14 percent larger thanthe U.k.s.

There is a direct correlation between agovernments commitment to innovation and itsR&D tax policies to its ability to attract and retaininnovative organiations. This is evidenced by theFrance/U.k. example, as well as by the continuedhigh-level perormance o the U.S. and Japanin the Top 100, which is reective o very pro-innovation agendas in both countries.

The United States has had a long tradition o R&Dtax credits, annually renewed by Congress andwith broad-based political support. Acts such asBayh-Dole (1980) and subsequent policies havecreated more robust innovation collaborationbetween government and the private sector,ultimately resulting in the emergence o techstartups, venture capital and private equity and anincrease in mergers and acquisitions.4

In Japan, new R&D tax credits introduced aew years into the 21st century provide greater

deductions (now at 12 percent) or R&D expensesagainst corporate income, along with a range oincentives or joint R&D collaboration with publicresearch institutes and universities. Outsourcedresearch is also eligible or R&D tax credits there.5

The innovative success o a country or region isinuenced by government policies and initiatives.

ECONOMIC POLICY AND GEOPOLITICALIMPLICATIONS

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INTRODUCING THE THOMSON REUTERS

2013 TOP 100 GLOBAL INNOVATORSCOMPANY COUNTRY/REGION INDUSTRY PREVIOUS WINNER

3M Company USA Chemical 2011, 2012

ABB Switzerland Industrial 2011

Abbott Laboratories USA Pharmaceutical

Advanced Micro Devices USA Semiconductor & Electronic Components 2011, 2012

Air Products USA Chemical

Alcatel-Lucent France Telecommunication & Equipment 2011, 2012

Altera USA Semiconductor & Electronic Components 2012

Analog Devices USA Semiconductor & Electronic Components 2011, 2012

Apple USA Telecommunication & Equipment 2011, 2012

Arkema France Chemical 2011, 2012

Asahi Glass Japan Industrial

AT&T USA Telecommunication & Equipment 2012

Avaya USA Telecommunication & Equipment 2011, 2012

BlackBerry Canada Telecommunication & Equipment

Boeing USA Aerospace 2011, 2012

Brother Industries Japan Computer Hardware 2011, 2012

Canon Japan Computer Hardware 2011, 2012

Chevron USA Petroleum 2011, 2012

CNRS, The French National Center

or Scientifc ResearchFrance Scientifc Research 2011, 2012

Commissariat lEnergie Atomique France Scientifc Research 2011, 2012

Corning USA Semiconductor & Electronic Components 2011, 2012

Covidien USA Medical Devices

Delphi USA Automotive 2012

Dow Chemical Company USA Chemical 2011, 2012

DuPont USA Chemical 2011, 2012

Eaton Corporation USA Electrical Products 2011, 2012

Emerson USA Machinery 2012

Ericsson Sweden Telecommunication & Equipment 2011, 2012

European Aeronautic Deence and

Space CompanyFrance Aerospace 2012

Exxon Mobil USA Petroleum 2011, 2012

Ford USA Automotive 2012

Fraunhoer Germany Scientifc Research

Freescale Semiconductor USA Semiconductor & Electronic Components

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COMPANY COUNTRY/REGION INDUSTRY PREVIOUS WINNER

FUJIFILM Japan Machinery 2012

Fujitsu Japan Computer Hardware 2011, 2012

General Electric USA Consumer Products 2011, 2012

Goodyear Tire & Rubber USA Industrial 2011, 2012

Google USAMedia/ Internet Search & Navigation

Systems2012

Hewlett-Packard USA Computer Hardware 2011, 2012

Hitachi Japan Computer Hardware 2011, 2012

Honda Motor Company Japan Automotive 2011, 2012

Honeywell International USA Electrical Products 2011, 2012

IBM USA Computer Hardware 2011, 2012

IFP Energies Nouvelles France Scientifc Research 2011, 2012

Infneon Technologies Germany Semiconductor & Electronic Components

Intel USA Semiconductor & Electronic Components 2011, 2012

Jatco Japan Automotive 2012

Johnson & Johnson USA Pharmaceutical

LG Electronics S. Korea Consumer Products 2011, 2012Lockheed Martin USA Transportation Equipment 2012

L'Oral France Consumer Products 2011, 2012

LSI Corporation USA Semiconductor & Electronic Components 2011, 2012

LSIS S. Korea Semiconductor & Electronic Components 2011, 2012

Marvell USA Semiconductor & Electronic Components 2012

Michelin France Industrial 2011, 2012

Micron USA Semiconductor & Electronic Components 2012

Microsot USA Computer Sotware 2011, 2012

Mitsubishi Electric Japan Machinery 2011, 2012

Mitsubishi Heavy Industries Japan Machinery 2012

NEC Japan Computer Hardware 2011, 2012

NGK Spark Plug Co., Ltd. Japan Automotive

Nike USA Consumer Products 2012

Nippon Steel & Sumitomo Metal Japan Primary Metals 2012

Nissan Motor Company Japan Automotive

Nitto Denko Japan Industrial 2011, 2012

NTT Japan Telecommunication & Equipment 2011, 2012

Olympus Japan Healthcare Products 2011, 2012

Omron Japan Semiconductor & Electronic Components

THE 2013 TOP 100 GLOBAL INNOVATORS

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COMPANY COUNTRY/REGION INDUSTRY PREVIOUS WINNER

Oracle USA Computer Sotware

Panasonic Japan Consumer Products 2011, 2012

Philips Netherlands Electrical Products 2011

Procter & Gamble USA Consumer Products 2011, 2012

Qualcomm USA Semiconductor & Electronic Components 2011, 2012

Roche Switzerland Pharmaceutical 2011, 2012

Saran France Transportation Equipment

Saint-Gobain France Industrial 2011, 2012

Samsung Electronics S. Korea Semiconductor & Electronic Components 2011, 2012

SanDisk USA Semiconductor & Electronic Components 2011, 2012

Sandvik Sweden Machinery 2011, 2012

Seagate USA Computer Hardware 2012

Seiko Epson Japan Computer Hardware 2011, 2012

Semiconductor Energy Laboratory Japan Semiconductor & Electronic Components 2011

Sharp Japan Semiconductor & Electronic Components 2011, 2012

Shin-Etsu Chemical Japan Chemical 2011, 2012

Siemens Germany Electrical Products 2011, 2012

Sony Japan Consumer Products 2011, 2012

STMicroelectronics Switzerland Semiconductor & Electronic Components 2012

Sumitomo Electric Japan Industrial 2011

Symantec USA Computer Sotware 2011, 2012

TDK Japan Semiconductor & Electronic Components 2012

TE Connectivity Switzerland Semiconductor & Electronic Components 2011, 2012

Texas Instruments USA Semiconductor & Electronic Components 2012

Thales France Transportation Equipment 2012

Toshiba Japan Computer Hardware 2011, 2012

Toyota Motor Corporation Japan Automotive 2011, 2012

TSMC Taiwan Semiconductor & Electronic Components

United Technologies USA Transportation Equipment 2012

Valeo France Automotive 2012

Xerox USA Computer Hardware 2011, 2012

Xilinx USA Semiconductor & Electronic Components 2012

THE 2013 TOP 100 GLOBAL INNOVATORS

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GEOGRAPHIC BREAkOUT

The geographic representation o the 2013 Top100 Global Innovators is similar to that in thepast, but with a ew nuances that mae thingsinteresting.

North America continues to lead inrepresentation overall, with 46 o the 100 romthis region o the world, as shown in Figure 1. Allbut one are U.S. companies; the lone outlier isBlacberry, which is Canadian.

Asia has the next greatest representation, with 28rom Japan, 3 rom S. korea, and 1 rom Taiwan.This is the frst year that an organiation outsideo Japan and S. korea has made the list. TaiwanSemiconductor (TSMC) is that new entrant.

Europe completes the list o 100, withrepresentation rom France (12), Switerland (4),Germany (3), Sweden (2), and the Netherlands (1).Again, France dominates the European landscapein terms o innovation. This is in large part due to

the government and innovation policies in thatcountry. The French government instituted anR&D tax credit reorm in 2008, ater several largepharmaceutical frms moved to other countries.The new regime allows direct osets againstcorporate income tax owed by companies.

Depreciation o assets dedicated to R&D projects,cost o employees in R&D, operating expenses orR&D, subcontract research activities, and certaintypes o expenses related to compliance withregulatory standards are all eligible or tax credit.

All qualiying R&D expenses up to 100 millioneuros are eligible or 30 percent R&D tax credit,and amounts above that qualiy or a 5 percenttax credit.

The United kingdom is noticeably absent romthe list again this year. This is primarily the resulto its more service-based economy, with largerepresentation rom the fnancial and real estatesectors. Additionally, the U.k. government doesnot incent innovation lie France and othernations, which impacts its ability to attract andretain large, innovative organiations. Grossdomestic spending on R&D perormed bybusiness enterprises is $279 billion in the US,$107.9 billion in Japan, and just $24.1 billion inthe U.k.

In contrast to other countries, there is not aunifed strategic policy council to coordinateresearch and/or innovation policies in Germany.This is despite the German Council o Scienceand Humanities, a joint institution withrepresentatives rom both ederal and statelevels, perorming some aspects o the worinherent to a strategic unit or research policy.6

There is a High-Tech Strategy in Germany, whichwas adopted in 2006 and updated in 2010.This aims to create lead marets and intensiycooperation between science and industry,while improving the ramewor conditions orinnovation.7 The recency o these programs isthought to be one actor contributing to ewerGerman companies on the list.

6 http://erawatch.jrc.ec.europa.eu/erawatch/opencms/inormation/country_pages/de/

country?section=GovernanceStructures&subsection=GovernmentPolicyMaingAndCoordination

7 http://www.research-in-germany.de/dachportal/en/Research-Landscape/R-and-D-Policy-Framewor/High-Tech-Strategy.html

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0

5

10

15

20

25

30

35

40

45

USA

Japan

FranceNetherlands

Taiwan

Switzerland

Germany

S.KoreaSweden

Canada

GEOGRAPHIC DISTRIBUTION OF 2013 TOP 100 GLOBAL INNOVATORS

FIGURE 1

TOP 100 GLOBAL INNOVATORS GEOGRAPHIC DISTRIBUTION - COMPARISON 2011-2013

FIGURE 1A

COUNTRY 2013 PERCENTAGE 2012 PERCENTAGE 2011 PERCENTAGE

Belgium 0% 1% 0%

Canada 1% 0% 0%

France 12% 13% 11%

Germany 3% 1% 4%

Japan 28% 25% 27%

Liechtenstein 0% 0% 1%

Netherlands 1% 0% 4%

S. korea 3% 7% 4%

Sweden 2% 3% 6%

Switerland 4% 3% 3%

Taiwan 1% 0% 0%

USA 45% 47% 40%

Source: Thomson Reuters Derwent World Patents Index (DWPI)


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INDUSTRY BREAkOUT

Again in 2013, the Semiconductors & ElectronicComponents sector prevails in its presence on thelist, as shown in Figure 2 and 3. There are 23 suchcompanies this year, up 28 percent over last yearwhen there were 18 Semiconductor organiations.New in 2013 are Freescale Semiconductor(US), Infneon Technologies (DE), Omron (JP),Semiconductor Energy Laboratory (JP) and TSMC(Taiwan). O the ull group, Samsung Electronics

(Sk) taes the lead in overall patent volume.

Computer Hardware is the next most prolifcsector, with 11 companies comprising this group.Despite it being second to Semiconductors, itsrepresentation is still hal that o Semiconductors,proo o the growing dependence onSemiconductor technology or everythingrom computers and phones to automobilesand appliances. The companies representingComputer Hardware this year were also on thelist in 2012.

The Automotive sector comes in third in termso volume, ollowed by Consumer Products,Industrial and Telecommunication & Equipmentin a tie or ourth place. New to Automotive thisyear are two Japanese companies: NGk SparPlug CO., Ltd. and Nissan Motor Company.Consumer Products representation remainedthe same, while ABB (CH) and SumitomoElectric (JP), and Blacberry (CA) are new in theirrespective categories: Industrial and Telecomms.

Another notable change over last year is the actthat Scientifc Research Centers dropped sharplyin their representation on this years list, themajority o which were lost rom S. korea. Thisis not an indication that such organiations arenot innovating, but rather that other sectors areinnovating at a aster rate or the period covered.It is still the case that the S. korean governmenthas strong innovation policies and incents

innovation through academic channels as well.

Also absent rom this years list are governmentagencies, namely the U.S. Department othe Navy and the U.S. Department o theArmy. Again, this does not mean that theseorganiations arent innovating, but rather otherindustries outpaced them in R&D intensity, suchas those in the Semiconductor sector.

The Pharmaceutical sector tripled in its presenceon the list, rom one to three companies thisyear. New to the list are Abbott Laboratories

(US) and Johnson & Johnson (US). This changein pharma representation is related to the end othe blocbuster drug era and the growth o theera o more personalied or precision medicine.Traditional molecule-based companies, whilevery innovative, tend not to innovate at the samepace as the high tech industry. However, precisionmedicine is opening new avenues and creatingnew opportunities or pharmaceutical companiesthat may not mean putting all o their proverbialeggs (innovation) in one baset.

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S

INDUSTRY REPRESENTATION OF THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORS

FIGURE 2


SEMICONDU

CTOR&ELE

CTRONICCOM

PONENTS:2

3%

C

OMPUTERHARDwARE:11%

AUTO

MOTIV

E:8

%

CO N SUMERPRO DUCTS:7%

INDUSTRIAL:7%

TELECOMMUNIC

ATIONS

:7%

CHEM

ICAL

:6%

MACH

INERy

:5%

ELECTRICALPRODUCTS : 4%

SCIENTIFICRESEARCH:4%

TRANSPORTATION:4%

COMPUTERSOFTw

ARE:3%

PHARMACEU

TICALS:3%

AEROSPACE:2%

PETROLEUM:2

%

HEALTHCARE:1%

MEDIA/

INTERNET: 1%

MEDICA LDEVICES:1%

PR IM

A R

yM E

TA L

S:

1%

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TOP 100 GLOBAL INNOVATORS INDUSTRY REPRESENTATION COMPARISON 2011 - 2013

FIGURE 2A

INDUSTRY 2013 PERCENTAGE 2012 PERCENTAGE 2011 PERCENTAGE

Aerospace 2% 2% 3%

Agriculture & Forestry 0% 1% 0%

Automotive 8% 7% 3%

Chemical 6% 8% 13%

Colleges/Universities 0% 2% 0%

Computer Hardware 11% 13% 11%

Computer Sotware 3% 2% 4%

Consumer Products 7% 7% 9%

Electrical Products 4% 5% 6%

Government Agencies 0% 2% 0%

Healthcare Products 1% 1% 4%

Industrial 7% 3% 6%

Machinery 5% 6% 8%Media/Internet Search & Navigation Systems 1% 1% 0%

Medical Devices 1% 0% 0%

Petroleum 2% 1% 2%

Pharmaceuticals 3% 1% 2%

Primary Metals 1% 1% 0%

Scientifc Research 4% 5% 3%

Semiconductor & Electronic Components 23% 18% 14%

Telecomm & Equipment 7% 7% 7%

Transportation Equipment 4% 7% 5%


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The U.S. leads the world in Semiconductor &Electronic Components companies on this yearsTop 100 list, with 23 such organiations. Thenext most prolifc country in this category isJapan (4), ollowed by S. korea (2), Switerland(2), Germany (1) and then Taiwan (1), as shownin Figure 3. Semiconductor companies are mostactive in North America and Asia, while being lessprevalent in Europe, in part due to the technology

inrastructure o these regions and the numbero partner organiations and partnershipopportunities available. Since semiconductorsare base components that comprise other,

larger products, there is a correlation betweenthe technology presence and semiconductororganiations regionally.

The Thomson Reuters 2013 Top 100 GlobalInnovator Semiconductor & ElectronicComponents companies outperormed anindustry index group o 20 semiconductorcompanies by 3.34 percent in year-over-year

revenue growth and 4.7 percent in R&D spend,providing urther evidence o the programsvalidity in methodology and inuence.

THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORS DISTRIBUTION:SEMICONDUCTOR & ELECTRONIC COMPONENTS

FIGURE 3

USA

JAPAN

S. kOREA

SWITzERLAND

GERMANY

TAIWAN


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THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORS DISTRIBUTION:COMPUTER HARDWARE

FIGURE 4

Japan leads the world in Computer Hardwarecompanies on this years Top 100 list, with 7such organiations. The only other country withComputer Hardware representation is the U.S.,with the remaining 4 honoree organiations,as shown in Figure 4. Lie the semiconductor

space, this is telling as it underscores the heavytechnology emphasis in these two countries,and the relationship between Semiconductor &Electronic Components and Computer Hardware;the ormer eeds the latter.

JAPAN

USA


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FIGURE 6

THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORINDUSTRY BREAkOUT - EUROPE:FRANCE, GERMANY, THE NETHERLANDS, SWEDEN, SWITzERLAND

Europe, which comprises France, Germany, theNetherlands, Sweden and Switerland, has itsgreatest representation rom Scientifc ResearchCenters, as shown in Figure 6. Three are romFrance and the only other on the list o all 100is rom Germany. Other areas o innovation inEurope include Industrial and Semiconductor &Electronic Components.

Siemens and Infneon Technologies are the othertwo organiations rom Germany, while ABB,Roche , STMicroelectronics and TE Connectivityrepresent Switerland. Ericsson and Sandvi putSweden on the map, while Philips represents theNetherlands.

0

0.5

1

1.5

2

2.5

3

3.5

4

ScientificResearchIndustrial

Semiconductor&ElectronicComponents

ElectricalProductsConsumerProducts

Machinery

Pharmaceutical

Telecommunication&Equipment

TransportationEquipmentAerospace

Automotive

Chemical


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FIGURE 7

THOMSON REUTERS 2013 TOP 100 GLOBAL INNOVATORINDUSTRY BREAkOUT - ASIA: JAPAN, S. kOREA, TAIWAN

Asia, which comprises Japan, S. korea andTaiwan, leads the world in Computer Hardwareinnovation, all o which comes rom Japan(see Figure 7). This region is similarly active in

Semiconductor & Electronic Components, with 4rom Japan, 2 rom S. korea and 1 rom Taiwan.The next most prolifc category is Automotive,where Japan provides all fve companies or thissector.

0

1

2

3

4

5

6

7

ComputerHardwareSemiconductors&Electronic

Components

AutomotivePrimaryMetals

Telecommunication&Equipment

ConsumerProducts

Industrial

Machinery

Chemical

HealthcareProducts


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CONCLUSION

There once was a time when patents were seenpurely as deensive tools, meant to protect aninvention and its inventor rom copycats. Now,as evidenced by perormance o our 2013 crop oTop 100 Global Innovators, the patent portoliohas become a vital component o the corporateoense a lynchpin in the strategic game planor staying one step ahead o rivals and evenbecoming a solid source o revenue or the

organiation.

Sure, patents can still be wielded very eectivelyas deensive tools, as weve seen in numeroussmartphone legal cases. But it is evident thattheir strategic value is even greater, as proved byMicrosots recent acquisition o some o Noiasstruggling mobile phone business. Nearlyone-third o the 5.44 billion Microsot agreedto pay was allocated to a patent agreementthat extends Microsots existing licenses to anumber o Noia patents. In all, Microsot endedup spending 1.65 billion to license roughly

30,000 Noia patents.

A similar story may be playing out amongthe smartphone manuacturers on this yearsTop 100 Global Innovators list. BlacBerry, orexample, which announced plans to pursuestrategic alternatives or its mobile business,including a possible sale, is liely fnding itselbeing valued beyond its fnancial perormanceas a result o the investment it made ininnovation and its patent portolio.

Global governmental policies with regard tostimulating investment in R&D and osteringconsistent, eective intellectual propertyinrastructure are also ey variables on displayin the 2013 Thomson Reuters Top 100 GlobalInnovators list. The three countries withthe highest number o contributions to thelist the U.S., Japan and France are alsothree countries with lengthy trac records ogovernment stimulus o innovation.

In the U.S., where a long tradition o R&D taxcredits and extensive collaboration betweengovernment and the private sector have helpedthe promotion o tech start-ups and growtho private equity and venture capital frms,innovation has been woven into most acets oeconomic policy.

In Japan, an R&D tax credit introduced in 2003

increased corporate tax deductions rom 10percent to 12 percent o R&D expenses againsttotal corporate income, along with a range otax incentives or joint R&D collaboration withpublic research institutes and universities. Morerecently, the Abenomics economic policyespoused by Japanese Prime Minister ShinAbe has been designed to encourage innovation.

Liewise, in France, R&D tax credit reormwas adopted in 2008 ater several largepharmaceutical frms let the country. The newregime is said to be much simpler, allowing

direct corporate tax osets or R&D projects.

Taen together, all o these interlocingvariables mae the case or ostering a cultureo innovation as an investment in uture success.The companies eatured on this years listhave proven that the signifcant investmento time and resources they have ocused oninnovation are paying dividends in the ormo new jobs, shareholder value, growingrevenues and increased maret share. Equallyimportant, the regions in which they operate

are playing a critical role in helping to cultivatethat innovation to lit the tide o their globaleconomies.

Thomson Reuters congratulates and thans the2013 Top 100 Global Innovators or the spirit oinnovation they inspire in their organiationsand their participation in IP systems that protecttheir precious intellectual assets.

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Note to press:

To request urther inormation, please contact:

Laura Gaze

Thomson Reuters

+1 203 595 6283

[email protected]

John Roderick

J. Roderic, Inc.

+1 631 656 9736

[email protected]

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ABOUT THOMSON REUTERSThomson Reuters is the worlds leading source o intelligent inormation orbusinesses and proessionals. We combine industry expertise with innovativetechnology to deliver critical inormation to leading decision maers in thefnancial and ris, legal, tax and accounting, intellectual property and scienceand media marets, powered by the worlds most trusted news organiation.With headquarters in New Yor and major operations in London and Eagan,Minnesota, Thomson Reuters employs approximately 60,000 people andoperates in over 100 countries. For more inormation, go towww.thomsonreuters.com.

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