China has acquired ownership of more than 11,300 patents originally developed in Germany over the past two decades, according to a new study by the German Economic Institute (IW), commissioned by the Bertelsmann Foundation.
The report found that nearly one in every three inventions developed in Germany is now owned by foreign entities, underscoring the growing international transfer of intellectual property from Europe’s largest economy.
It noted that United States-based entities account for the largest share of German-developed patents abroad, holding almost one-third, while Swiss owners control about 11 per cent.
The trend is particularly visible in Germany’s mechanical engineering sector, where patent activity rose from about 3,300 applications in 2000 to 4,300 in 2022.
The study said China has been especially active in acquiring technologies linked to the sector, raising concerns about the long-term control of strategic innovations.
“German companies also hold patents abroad. That is part of normal competition,” IW expert Oliver Koppel said.
However, Koppel argued that China’s approach differs from that of other economies, saying Beijing pursues targeted acquisitions in Western markets as part of a broader industrial strategy while maintaining tighter restrictions on foreign access to its domestic market.
“But he said Beijing directed Western acquisitions strategically while keeping its own market relatively closed to foreign investors,” the report stated.
“That is an imbalance,” Koppel said, adding that Europe should more closely monitor where strategically important technologies are migrating.
The report also warned that Germany’s innovation capacity is under pressure due to relatively weak investment in research and development (R&D) compared with global competitors.
It noted that Germany ranked third globally in R&D spending in 2000, with investment levels roughly twice those of China at the time. However, by 2021, Germany had fallen to sixth place.
In contrast, China has significantly expanded its research and development spending over the same period, increasing investment roughly twentyfold, according to the study, highlighting a shift in global innovation leadership.
