Multinational R&D emerges as main source of Israeli innovationAug. 13, 2013
Innovation is what gives Israel's high-tech industry much of its competitive edge, propelling local companies to the forefront of technology, while also attracting investment and partnership from global firms.
Tracking patent registration gives a fair indication of Israeli innovation rates. A new study by the Samuel Neaman Institute, along with the National Council for Research and Development at the Science and Technology Ministry, has tried to establish who mans the front lines of local innovation by doing just that. The study tracked who registers the largest number of patents, businesses or research institutes, and who registers more patents in Israel, Israeli companies or local R&D centers established by multinational firms.
The results shows that the best local creative minds are concentrated at more than 200 research and development centers in Israel belonging to the world's leading technology companies.
Over the last two decades the number of new patents by foreign R&D centers has been on the rise. In the early 90s, the number was negligible, but by 2000 it had risen to 409 and reached around 1,000 in 2012, accounting for 27% of all the patents registered by Israel's business sector for the year.
The U.S. company IBM, the study found, has led the pack in patent registration in recent years with 463 between 2006 and 2010, followed by Israel’s Teva Pharmaceuticals with 430. After IBM and its 463 patent applications between 2006 and 2010, the U.S. company SanDisk was runner-up with 394 from 2006 to 2010, followed by Intel in third place with 321 applications. Altogether, these three companies accounted for 1,178 patent applications, representing 39% of all those by foreign R&D centers in Israel.
HP and Microsoft ranked fourth and fifth respectively among the multinationals in Israel, followed in order by three global microchip companies - Qualcomm, Freescale Semiconductor and Applied Materials - all of them based in the United States. Texas Instruments ranked 10th, while Eastman Kodak, Samsung (of Korea), General Electric and Deutsche Telekom (of Germany) also submitted dozens of patents for registration.
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