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U.S. PATENTING TRENDS BY NAICS INDUSTRY CATEGORY
UTILITY PATENT GRANTS
CALENDAR YEARS 1963-2012
 
-- GENERAL DESCRIPTION OF THE REPORT --

- this report was created with support from the National Science Foundation -

Quick Links to Contents on this Web Page

• Brief Overview
• Patents Included in the Report
• NAICS Industry Categories and Roll-ups
• Associating U.S. Patents with NAICS Industry Categories
• Fractional Counts and Whole Counts
• Distribution By Year of Grant and By Year of Application
• Origin
• Ownership Category
• Assignees (Assigned Owners)
• Brief Description of Table Columns (and Values)
• NAICS Categories Profiled in This Report (Table)
• Viewing the Report Offline (i.e., downloading the report)
• Analyzing the Data Using Spreadsheet Software
• Printing the Tables
• National Science Foundation Support And Acknowledgment
• PTMT Contacts

Brief Overview

This report, prepared by the United States Patent and Trademark Office (USPTO), Patent Technology Monitoring Team (PTMT), profiles U.S. patenting in 30 product fields (26 unique fields, and several fields that are combinations or roll-ups of the 26 unique fields) that are based on the 2002 North American Industry Classification System (NAICS). Patenting activity in the NAICS industry categories has been determined by the primary U.S. Patent Classification System (USPC) classification assigned to each patent and a USPC to NAICS concordance.

This report presents various tables that display patenting activity by NAICS category, state and country of origin, ownership category, and first-named assignee (assigned owner). The report tables count patents in two ways, using a "fractional count" method and a "whole count" method that are discussed in more detail in a separate section, below. Some tables are provided that distribute patent grants by the year of grant and other tables are provided that distribute the same patent grants by the year of application. These different distributions of the same patents are further discussed in another separate section, below.

Patent data presented in this report have been obtained from the USPTO Technology Assessment and Forecast (TAF) database that is administered by PTMT. The TAF database includes selected bibliographic data for 5.4 million U.S. utility patents issued since 1963 and 483,000 non-utility patents issued since 1977 (this count excludes published patent applications). While every effort is made to ensure accurate data for all patents, the size and complexity of the database prevent achievement of a totally "clean" record.

PLEASE NOTE !

USPTO staff are not classifying U.S. patents directly into NAICS industry categories. The distribution of patent counts by NAICS industry category, as displayed in this report, is determined using a very general concordance between two substantially different classification systems, the U.S. Patent Classification System and the North American Industry Classification System.

As such, the patent counts associated with each of the different NAICS categories should be viewed with caution and may serve only as a very general indicator of the patenting activity in those categories.

Patents Included in the Report

This report counts 'utility patents' granted by USPTO from 1963 to 2012. 'Utility patents' are also known as 'patents for inventions'. Plant patents and design patents are not counted in this report. Assignee (assigned owner) breakouts are limited to 'utility patents' granted since 1969.

NAICS Industry Categories and Roll-ups

NAICS industry categories that are profiled in this report consist of 30 categories that are based on the 2002 North American Industry Classification System (NAICS). There are 26 unique categories, and 4 categories that are combinations or roll-ups of the 26 unique categories. In addition, an 'All Industries' category, consisting of all NAICS categories together, is included in the report.

In the report tables, each roll-up category is identified as a '*** ROLLUP ***' in the NAICS classification title. A listing of the NAICS categories is included in a table, below.

Associating of U.S. Patents with NAICS Industry Categories

Patents have been associated with NAICS industry categories using the primary U.S. Patent Classification System (USPC) classification assigned to each patent and a USPC to NAICS concordance.

U.S. patents are classified in one or more classifications of the U.S. Patent Classification System (USPC) according to the content and claimed subject matter contained in the patents. For each patent, one of these classifications is designated as the primary classification of the patent (called the patent's 'original' classification, in USPTO-specific terminology), and the remainder, if any, are designated as 'cross-reference' classifications. Each patent has one and only one primary classification. In this report, only a patent's primary or 'original' classification is considered in the determination the patent's associated NAICS category or categories. Patent classification information in this report reflects the USPC as it existed on 31 December 2012. Note that frequent expansion and changes have occured in the USPC to accommodate changing technologies. As a result, a patent may have been periodically reclassified into new classifications. Thus, the current, primary classification associated with a patent may have changed over time and may not be the same classification as was assigned at the time of grant.

In the tables that display utility patent activity by NAICS industry category, patent counts for each NAICS category are determined by using the primary classification associated with each patent and a concordance between the USPC and NAICS. The USPC to NAICS Concordance assigns USPC patent classifications to all (up to seven) identified NAICS-based categories to which they are pertinent. This procedure results, in most cases, in the inclusion of the majority of patents relevant to the NAICS category and few, if any, irrelevant patents. However, since the match between the USPC and NAICS is imperfect, the tables cannot be considered to include all relevant patents, nor to exclude all irrelevant patents. For an invention relating to a product or apparatus, the NAICS category identified by the concordance is based primarily on the type of establishment that would be engaged in producing the product or apparatus. For an invention relating to a process, it first is determined if the process is associated more with the product or with the apparatus and then the previously noted rule is applied. More detail about the Concordance may be found in Review and Assessment of the OTAF Concordance between the U.S. Patent Classification and the Standard Industrial Classification System: Final Report, OTAF, 1984 (image copy only), available from PTMT. Note that the USPC to NAICS concordance is largely based on the USPC to Standard Industrial Classification System (SIC) Concordance that preceded it. NAICS has replaced the SIC. The USPC to NAICS Concordance file is available for download on the USPTO Web Site (USPC to NAICS Concordance). Older USPC to SIC Concordance files are also available for download on the USPTO Web Site (USPC to SIC Concordance).

Fractional Counts and Whole Counts

This report contains separate sets of 'Fractional Count' tables and 'Whole Count' tables. These separate sets of tables count patents in different ways.

The 'Fractional Count' tables divide each patent equally between the NAICS categories that correspond to the patent's primary classification, as determined by the USPC to NAICS concordance. In the 'Fractional Count' tables, for example, if a patent has primary classification in a USPC classification that is matched to 3 unique NAICS categories, then that patent is counted as 1/3 (one-third) of a patent in each of the three associated NAICS categories. Because of this equal, proportional division of patent counts between the matched NAICS categories, the sum of the patent counts in the 26 unique NAICS categories for a year will equal the total number of patents for that year, as displayed in the 'All Industries' category breakout (subject to mostly minor rounding differences). Similarly, patent counts for a NAICS roll-up category (e.g., NAICS 336) for a period will equal the sum of the patents of its component categories (e.g., 3361-3369) for that period, again subject to mostly minor rounding differences. Note that in the tables, 'fractional' patent counts have been rounded to the nearest integer.

Except for mostly minor differences due to rounding, the unique NAICS category counts in the 'Fractional Count' tables also should sum to the totals displayed in most other PTMT utility patent statistics reports applied to the same time periods.

In the 'Whole Count' tables, when a patent has a primary classification in a USPC that is matched to more than one NAICS category, that patent is counted once in each of the matched NAICS categories. In the 'Whole Count' tables, for example, if a patent has primary classification in a USPC classification that is matched to 3 unique NAICS categories, then a full patent count is added to each of the three associated NAICS categories. Consequently, that single patent results in an effective total count of 3 patents when the three NAICS categories are summed together. For this reason, in the 'Whole Count' tables, PTMT strongly suggests that users avoid summing patent counts from different NAICS categories since such sums will result in some patents being counted multiple times (i.e., double counting of patents is likely). In the 'Whole Count' tables, a single patent may be fully counted in as many as seven unique NAICS categories. While the summing of 'whole' counts across different NAICS categories should be avoided due to the possibility of counting a patent multiple times, note that within a table, counts displayed in each individual 'Whole Counts' category represent counts of unique patents (i.e., each patent is counted only once).

For most general analyses, use of the 'Fractional Count' tables is suggested. However, 'Whole Count' tables can be helpful in determining the full extent of patenting activity in a single NAICS category. In cases where there is a need to sum counts across more than one NAICS category, the 'Fractional Count' tables are likely to be preferred since the use of 'Fractional Count' tables should avoid the possibility of counting the same patents multiple times.

Distribution By Year of Grant and By Year of Application

Selected tables in this report distribute patent counts by the year in which the patents were granted. Other tables distribute the same patent counts by the year in which patents were were filed (i.e., the year of application).

The distribution of patent grants by the year in which the patents were granted is significant since the year of grant indicates when patent protection for an invention was obtained.

The distribution of patent grants by the year in which they were filed also can be useful in analyses of patent activity, It should be noted, however, that DATA FOR THOSE APPLICATIONS THAT WERE FILED BUT NEVER ISSUED (HISTORICALLY ABOUT 35% OF TOTAL FILINGS) ARE NOT INCLUDED IN ANY TABLES IN THIS REPORT.

Tables that display patent counts, as distributed by their year of application, are of significant value since the date that an application was filed more accurately reflects when the technology was developed. Additionally, fluctuations in patent data distributed by application date are much more likely to reflect changes in technological activity since such fluctuations, for the most part, would be less affected by changes in U.S. Patent and Trademark Office (USPTO) processing such as occurred in years such as 1986 when the USPTO issued fewer patents than would normally have been expected due to a lack of funds. Note that a patent's "pendency" can be quite variable from one patent to another thereby affecting the date of patent grant. Such variation in pendency is determined by many factors, including USPTO workload (which varies between technologies), budget and manpower levels, patent printing schedules, etc.

Since the average time period between the filing for a patent and the issuing of the patent (i.e., a patent's "pendency") is about 32 months for utility patents, many of the applications filed prior to 2004 were still pending on December 31, 2012, the cutoff date for patents included in this report. As a result, the patent counts displayed for the years 2004 to 2012 in the tables that distribute counts 'by year of patent application' are incomplete and will increase in the future as patent applications filed during those later years are patented in 2013 and beyond.

As of 12/31/2012, utility patent data, as distributed by year of application, are approximately approximately 95% complete for utility patent applications filed in 2004, 89% complete for applications filed in 2005, 80% complete for applications filed in 2006, 67% complete for applications filed in 2007, 49% complete for applications filed in 2008, 36% complete for applications filed in 2009, and 19% complete for applications filed in 2010; data are essentially complete for applications filed prior to 2004.

Origin

In the tables that display patent origin, origin corresponds to 'geographic' origin. Origin is grouped into 'U.S.' and 'Foreign' origin categories and is determined by the residence of the first-named inventor at the time of grant, as displayed on the patent. Within each category, geographic regions are listed in order of decreasing total patent counts for the period. Annual patent counts are displayed for each year of the time period.

Please note that geographic names that appear in this report do not imply any expression of opinion by USPTO about the preferred name or the legal status of any country or territory, or of its authorities.

Ownership Category

In the tables that list patent ownership, ownership is grouped into 'U.S.' and 'Foreign' ownership categories. Annual patent counts are displayed for each year of the time period.

Patent ownership, e.g., 'U.S. Corporation Owned', is determined by the assignment of ownership at the time of grant and corresponds to the information that appears on the patent, usually on the patent's front page. In cases of multiple assigned owners (i.e., assignees), the patent ownership category is attributed to that of the first-named assignee. If patent ownership is unassigned, ownership category is identified as 'Individual'. Assignee mergers, assignee name changes, and ownership changes that occur after patent grant are not recorded in the TAF database and are not reflected in the table counts.

'Corporation' ownership categories correspond to assignees that are non-government organizations. While the majority of these non-government organizations are corporate entities, the term also includes organizations such as small businesses, universities, research foundations, and nonprofit institutions. 'U.S. Government' ownership corresponds to ownership by the U.S. Federal Government but 'Foreign Government' ownership is not necessarily restricted to national or sub-national government entities. 'Individual' ownership categories correspond to both patents for which ownership was unassigned at the time of grant and patents for which ownership was assigned to an individual.

The determination of an ownership category as 'U.S.' or 'Foreign' is based on the address provided at the time of grant for the first-named assignee or, in the case of patents with unassigned ownership, the first-named inventor.

Assignees (Assigned Owners)

Patent ownership information reflects ownership at the time of patent grant and does not include subsequent changes in ownership. Assignee mergers and ownership changes that occur after patent grant are not recorded in the TAF database and are not reflected in the table counts. If more than one assignee was declared at the time of grant, patent ownership is attributed to the first-named assignee.

No attempt has been made to combine data based on subsidiary relationships. However, where possible, spelling variations and variations based on name changes (e.g., ESSO to EXXON) have been merged into a single name. While every effort is made to accurately identify all organizational entities and to report data by a single organizational name, achievement of a totally clean record is not expected, particularly in view of the many variations that may occur in corporate identifications.

Note that some tables include an assignee entry labeled, "~INDIVIDUALLY OWNED PATENT". This entry includes (1) patents for which ownership was unassigned at the time of grant and (2) patents for which ownership was assigned to an individual at the time of grant (i.e., ownership assignment was not made to an organization).

In the tables listing patent assignees, entries are listed in order of decreasing total patent counts for the period. Annual patent counts are displayed for each year of the time period. Assignee data in this report are limited to utility patents granted since 1969 because assignee data contained in the TAF database, used as the data source for this report, is limited to utility patents granted since 1969.

Brief Description of Table Columns (and Values)

Counts

Frac - This term appears as the first value in the 'Counts' column when the displayed patent counts are 'Fractional Counts' (see above for a description of 'Fractional Counts')

Whol - This term appears as the first value in the 'Counts' column when the displayed patent counts are 'Whole Counts' (see above for a description of 'Whole Counts')

YoG - This term appears as the second value in the 'Counts' column when the displayed patent counts are distributed by the Year of Grant (see above for a description of patent distributions by Year of Grant)

YoA - This term appears as the second value in the 'Counts' column when the displayed patent counts are distributed by the Year of Application (see above for a description of patent distributions by Year of Application)

Sequence ID

This term is an internal PTMT identifier that corresponds to the NAICS classification category

NAICS Classification

This term corresponds to the specific NAICS classification(s) included in the classification category

Classification Title

This term corresponds to the title of the specific NAICS classification(s) included in the classification category

(U.S. or Foreign)

(U.S.) - This term corresponds to patents of U.S. origin where patent origin is based on the residence of the first-named inventor

(Foreign) - This term corresponds to patents of Foreign origin where patent origin is based on the residence of the first-named inventor

(ALL) - This term corresponds to patents of either U.S. or Foreign origin where patent origin is based on the residence of the first-named inventor

(U.S. Ownership) - This term corresponds to patents of U.S. ownership where patent ownership category is based on the ownership category of the first-named assigned or unassigned owner at the time of grant

(Foreign Ownership) - This term corresponds to patents of Foreign ownership where patent ownership category is based on the ownership category of the first-named assigned or unassigned owner at the time of grant

(ALL Ownership) - This term corresponds to patents of either U.S. or Foreign ownership where patent ownership category is based on the ownership category of the first-named assigned or unassigned owner at the time of grant

Region ID

This term is an internal PTMT identifier that corresponds to the State-Territory or Country of origin of the patents being counted where origin is based on the residence of the first-named inventor

State-Territory or Country

This term corresponds to the State-Territory or Country of origin of the patents being counted where patent origin is based on the residence of the first-named inventor

Assignment ID

This term is an internal PTMT identifier that corresponds to the Ownership Category of the patents being counted; patent ownership category is based on the ownership category of the first-named assigned or unassigned owner at the time of grant

Ownership Category

This term corresponds to the Ownership Category of the patents being counted; patent ownership category is based on the ownership category of the first-named assigned or unassigned owner at the time of grant

Organization

This term corresponds to the first-named assigned owner at the time of patent grant for the patents being counted; patents for which ownership is unassigned (i.e., ownership is retained by the inventor(s)) and patents for which ownership is assigned to an individual are counted together under the organizational entry, '~INDIVIDUALLY OWNED PATENT'

YYYY (four-digit year)

These columns correspond either to the distribution of patent counts by the 'Year of Grant' or by the 'Year of Application'; note that in both of these cases, only granted patents are being counted (i.e., unpatented patent applications are omitted from the counts that are being included in this report); the displayed years correpond to calendar years

NAICS Categories Profiled in This Report

Other Information

Viewing the Report Offline (i.e., downloading the report)

For users who would like to view the NAICS report offline, the entire contents of the report can be accessed for downloading from: http://www.uspto.gov/web/offices/ac/ido/oeip/taf/data/misc/naics_reports/.

Analyzing the Data Using Spreadsheet Software

Use of spreadsheet software may facilitate analysis of the data contained in these tables. Users should note that many spreadsheet software programs (e.g., Microsoft Excel) can open these tables directly (from the File/Open box) for data manipulation and analysis. Check the spreadsheet software documentation for details.

Printing the Tables

Some web browsers such as Microsoft Internet Explorer, versions 7 and later, will acceptably print many of these tables. Printing in landscape mode with a small text font is suggested. Also, importing the web page into spreadsheet or word-processing software may allow a user additional flexibility for formatting the tables for printing. Check the corresponding software documentation for details.

NATIONAL SCIENCE FOUNDATION
SUPPORT AND ACKNOWLEDGMENT

The U.S. Patent and Trademark Office (USPTO), Patent Technology Monitoring Team, compiled these patent data and assembled this report. While this report was not directly supported by the National Science Foundation (NSF), it is an update to previous reports that were produced with the support of NSF's Science and Engineering Indicators Program.

Use and further release of these data, in whole or in part, are permitted. However, acknowledgment of the source of the data and absolution of the USPTO and NSF from responsibility for any opinions or recommendations expressed in any document using or containing the data are required. The following language is recommended:

Patent data appearing in this document were prepared by the U.S. Patent and Trademark Office, Patent Technology Monitoring Team. These data are an update to previous reports that were prepared with support from the National Science Foundation, Science and Engineering Indicators Program. Any opinions or recommendations expressed in this document are those of the authors and do not necessarily reflect the views of the U.S. Patent and Trademark Office or of the National Science Foundation.

PTMT Contacts

Questions regarding this report should be directed to:

U.S. Patent and Trademark Office
Electronic Information Products Division - PTMT
P.O. Box 1450
Alexandria, VA 22313

tel: (571) 272-5600
fax: (571) 273-0110
email: oeip@uspto.gov

address of PTMT pages at the USPTO Web Site :
http://www.uspto.gov/web/offices/ac/ido/oeip/taf/reports.htm
selected PTMT materials available for download at : http://www.uspto.gov/web/offices/ac/ido/oeip/taf/data/

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