Korea Part of a "Marked Shift in Innovation Hubs" Worldwide

Increased patent filings in North East Asian countries (mainly China and the Republic of Korea (ROK)) and the United States of America (USA) drove growth in worldwide filing of patent applications, which topped 1.76 million in 2006, representing a 4.9% increase over 2005, according to the 2008 edition of the World Patent Report of the World Intellectual Property Organization (WIPO). The Director General of WIPO, Dr. Kamil Idris, observed “A major increase in innovative activity in China, the Republic of Korea and the United States has driven the overall growth of patent filings in 2006. This reflects a consolidation of earlier trends which demonstrate a marked shift in innovation hubs around the world.” He further added “While use of the patent system remains highly concentrated among a group of countries, statistics show an increasing level of patent activity in emerging countries. This is an encouraging trend,” he added.
While statistics from the World Patent Report reveal patterns of concentration in patent activity, they also point to a growing tendency for applicants to file their applications in multiple countries. This trend towards increasing internationalization of patent activity is demonstrated by the growth in international filings through the Patent Cooperation Treaty (PCT) and in non-resident patent filings.
The period 2000-2006, saw a significant increase in the number of filings originating from Australia, China, India and the ROK. The average annual growth rate in patent filings for these countries was far above that of all reported countries in Europe and North America. Japan, the United Kingdom and Sweden experienced modest growth in patent filings (less than 1% a year).
In 2005 (the latest year for which technology data are available), the most intense patenting activity is evident in the following sectors: computer technology (144,594), telecommunications (116,770), and electrical machinery (121,350) technologies. Between 2001 and 2005, patent filings in computer technology, optics, and semiconductors grew by 5.3%, 5.0% and 4.9%, a year, respectively. There was a modest increase in pharmaceuticals filings (1.7%) and a decrease in biotechnology filings (-2.7%).

"Job Creation 7 Times Slower Than Economic Growth"

An article in today's Korea Times quickly caught my eye with the headline "Job Creation 7 Times Slower than Economic Growth." Fundamentally, this is all due to the advances in communication technology that started in the 1980s and are now bearing fruit. The newspaper article quotes an official from the Ministry of Strategy and Finance as saying ``Korea's industrial structure has transformed into a technology-and capital-dependent one from a labor-intensive one. Manual jobs have largely been moved to China and other Asian economies in which labor costs are much cheaper than here. The economy is expanding without creating as many jobs as it used to." This Ministry official's reference to technology really refers to information and communication technologies (ICT), more than any others. Even more specifically, I would note that there are four key anchor technologies in the fields of industrial and consumer electronics that underpin South Korea's economy today. They are:

• Semiconductors


• Flat screen displays including color television displays.


• Mobile handsets and other devices.


• Electronic switching systems which are key components of digital networks.

As shown in the accompanying graphic, employment elasticity ― the job growth rate divided by output growth rate ― fell to an all-time low of 0.15 in the second quarter of the year, down from 0.25 in the same period last year.

Social Effects of New Communications: Digital Alzheimers?

The English edition of the Chosun Ilbo today carried news of a new malady, termed "digital Alzheimers."  A doctor with a large university hospital said, “There are no statistics, but the number of young workers who visit hospitals for forgetfulness counseling is definitely on the rise.”  Experts say more and more workers in their 20s and 30s suffer from forgetfulness due to the flood of information that assaults them in the office and their growing dependency on digital devices. Some seek treatment in hospitals when the symptoms get worse. Doctors even have a name for it: Digital Alzheimer’s Disease, a condition they say now afflict modern urbanites just like migraine or insomnia. Somehow, from my personal experience I can identify with the "flood of information" part of the argument, and also the increasing dependency on digital devices.   More on this one in later posts.