The Transformation of the Automotive Industry: An International Comparison of Germany's Innovation Performance

This paper analyses international patent activity in those countries where the industry's key research is carried out. The results show that within the global motor vehicle industry research is geographically concentrated. Almost 90 per cent of all international patent applications in the automotive sector come from just six countries. In 2020 the country with the largest number in absolute terms was Germany, although between 2015 and 2020 the number of motor vehicle patent applications in China tripled. Of those submitted in the latter year nearly 60 per cent were for electrified powertrains, and a single company, battery cell manufacturer CATL, accounted for most of these. In all other major centres of automotive research, the share of electrified powertrain patent applications is below 20 percent. In 2020 worldwide, patent applications relating to electric powertrains exceeded those for their conventional counterparts for the first time. In that year, the largest number of patents for electrified powertrains were developed in Germany. However, at that point the technical transformation in this country stalled, whereas it continued to accelerate elsewhere. In most countries with significant international automotive patent applications, the innovation scene is dominated by the component suppliers.