Study: Foreign firms now control 29% of Germany's key patents

Germany is losing too many patents to companies in other countries through corporate takeovers, according to a study by the Cologne Institute for Economic Research (IW) commissioned by the Bertelsmann Foundation and published on Thursday. 

Foreign corporations now control around 29% of the 189,000 transnational patents produced by German companies between 2000 and 2022.

"Most of the patents produced in Germany are controlled from the US, but China has already established itself in the corresponding leading group," the study said. "In light of current geopolitical developments, both circumstances must be critically examined." 

Germany would be well advised to achieve greater independence in relevant technology sectors, it added.

"German corporations also hold patents abroad. That is part of normal competition," said Oliver Koppel, co-author of the study. However, he said China was steering acquisitions in the West geostrategically while simultaneously shielding its own market from foreign investors.

The employer-aligned institute recommends that Germany invest more in research to avoid falling behind internationally. The share of the German economy in global research and development spending has fallen significantly, it said.