China owns more than 11,000 German-developed patents, IW study shows

BERLIN, June 2 (Reuters) - China has taken ownership of more than 11,300 patents developed in Germany over the past two decades, according to a study by the German Economic Institute (IW) commissioned by the Bertelsmann Foundation.

Nearly one in three inventions developed in Germany is owned by a foreign entity. Of those, almost a third are held by U.S. owners and about 11% by Swiss owners, the study showed on Tuesday.

The shift is especially pronounced in mechanical engineering, where patent applications rose to 4,300 in 2022 from 3,300 in 2000.

The study said China had been particularly active in acquiring technologies in the sector

"German companies also hold patents abroad. That is part of normal competition," IW expert Oliver Koppel said.

But he said Beijing directed Western acquisitions strategically while keeping its own market relatively closed to foreign investors.

"That is an imbalance," Koppel said, adding that Europe must examine more closely where strategically relevant technologies are migrating.

Germany's domestic innovative strength is weakening due to insufficient investment in research and development, IW said.

Germany ranked third worldwide in R&D spending in 2000, when its outlays were twice as high as China's, but it had slipped to sixth place by 2021.

China, by contrast, has increased its R&D spending twentyfold over the period, the institute said.

(Reporting by Rene Wagner, writing by Maria Martinez, Editing by Miranda Murray)