Automaker Patent Assets Intelligence Report

Speaking of the future of the auto industry, Andy Gibbs (formerly) of Patent Cafe did an analysis of the patents of 5 top car makers: GM, Ford, Chrysler, Toyota and VW . The report, Automaker Patent Assets Intelligence Report, is now available. Also available is a summary article of the report at IP Frontline. The study finds the US companies have the best average technology patent quality scores and the best management processes. However, VW had the strongest patent position from a legal enforceability perspective.

However, and maybe more importantly, Toyota leads in green technology. Toyota had more than 29% of its portfolio focused on green technology patents (1,768). Ford was second with 26% (1,674 green tech patents). GM had only 907 green tech patents -- a figure that does not bode well for future competitiveness. Chrysler did also poorly on green tech. But they are expected to pick up technology form Fiat, which was not rated. GM does have 42% of its patent portfolio made up of grade A or B quality patents -- which does suggest strength in potential licensing revenues.

While I have my concerns about patents as a measure of innovation and future competitiveness, such an analysis has its uses. I specifically point to the potential for licensing revenues. I hope the Administration's auto task force took that into account.

One final note on the report. It ends with a section on open innovation and the fact that the car companies, especially GM have been moving toward more research on motor vehicle electronics:

PatentCafe's analysis found that Google already has nearly four dozen patents and applications that mention, and possibly target motor vehicle communications systems, including: "Vehicle Information Systems And Methods"; "Visually-oriented Driving Directions In Digital Mapping System"; and "System For Automatically Integrating A Digital Map System".
Is R&D investment by automakers in such non-core technologies wise, especially considering Google's position as a first-mover and technology leader in this area? Or, is investment into in-vehicle information systems "too little - too late"?
Tomorrow's automakers must return to their core vehicle assembly capabilities, but expand their Open Innovation networks with new suppliers that are maniacally focused on dominating their respective technologies (such as Google). Open Innovation lowers R&D investment, can help automakers focus on their core competence as high quality, low cost auto assemblers, and places more dependence on partners that can more efficiently respond to dynamically changing consumer demands with fast innovation cycle technologies.

Good point.