Patents and venture capital funds go abroad
Did you know that patents often play an integral role in obtaining risk capital financing? A startup with a patent significantly increases the chances of securing VC funding1.
Financial Times Global Business Columnist Rana Foroohar reiterated that sentiment in a recent column and wrote: \There is little doubt that strong IP protection is linked to stronger economic growth. A recent article by the National Bureau for Economic Research showed that patent ownership (and ability to defend) increases the chances of achieving venture capital financing by 53 percent, start-up job growth by 36 percent and start-ups by 51 percent.
inventor help
With the US global share of VC funding falling from 81% in 2006 to 54% in 20172, it is becoming increasingly difficult for American inventors to raise the capital they need to finance their innovation and technological and scientific breakthroughs. To the market.
Startups do not start at the same speed
It is no coincidence that the establishment of a new company in the US is at a historically low level. Although the start-up activity has recently increased, we are still well below the average of the average recession, indicating that the sector is still dragging in the start-up sector. The reasons are multifaceted, but a weaker patent system and years of anti-IP stories in Congress and the media have played a role. Patent specialists Gene Quinn and Steve Brachmann of IP Watchdog have described it in this way:
A careful look at how Google and others have lobbied so successfully over the past decade to weaken patent rights, making it more difficult for disruptive innovators to obtain and retain patents, explains why tech startups find an ecosystem that has evolved into market leaders. protect the costs of new companies with new ideas and innovations that can not be patented.2 - Gene Quinn and Steve Brachmann of IP Watchdog
China surpasses the US and the world in filed patents
China’s focus on innovation is well documented and efforts are paying off. Not only are the US patent applications over, but as the table below with Innovation Alliance shows, China also surpasses the world. The impact is fairly simple: where innovation goes, investment follows. This is a serious threat to the American inventor and the American economy.
Innovation Allliance International Patent Applications in 2017
The US drops to 12th place in the world ranking of patent system strength and 11th in the global ranking of innovation
If that was not enough, perhaps the clearest sign of the American slide was in the form of two recent rankings. The Global Innovation Policy Center of the Chamber of Commerce now ranks the USA in 12th place because of the strength of the patent system in its international IP index, which lags behind countries such as South Korea and Spain and is linked to Italy. And the latest Bloomberg Innovation Index now ranks the US in 11th place for innovation and falls for the first time out of the top ten. These indicators translate into less confidence in American innovators and investors, and less money and jobs that penetrate the American economy.
how you can help
The installation of the system starts at the conference level. The two-party STRONGER patent law, introduced in the Senate by Senators Chris Coons (D-DE) and Tom Cotton (R-AR) and in the house by representatives Steve Stivers (R-OH) and Bill Foster (D-IL) offers a roadmap to start reversing this coursed restore our position as a global leader in innovation.