Is Japan the world’s most innovative country?

YOSHIKAZU TSUNO/AFP/Getty Last week, The Economist posed the question: Why is Japan the source of so many bright ideas? At 1,200 patents per million people, Japan has the highest rate of patents in the world—even when you account for multiple counting. But Japan’s success in patenting only tells part of the story. Patents are often ...

YOSHIKAZU TSUNO/AFP/Getty

Last week, The Economist posed the question: Why is Japan the source of so many bright ideas? At 1,200 patents per million people, Japan has the highest rate of patents in the world—even when you account for multiple counting.

But Japan's success in patenting only tells part of the story. Patents are often awarded for incremental achievements; for instance, improving the clarity of photos on a cell phone camera rather than coming up with a unique new design. So it's likely that incremental innovations inflate Japan's patent figures. Another reason for Japan's patent performance could be its concentration of manufacturing and particularly electronics industries. The "clustering" of competitors and demanding clients means that not only do companies have an incentive to come up with constantly improving products, but they also have a strong incentive to make sure they patent each improvement so as to avoid copying by competitors. Switzerland is the second highest patent-awarding country after Japan, no doubt bolstered by its cluster of big pharmaceutical companies.

YOSHIKAZU TSUNO/AFP/Getty

Last week, The Economist posed the question: Why is Japan the source of so many bright ideas? At 1,200 patents per million people, Japan has the highest rate of patents in the world—even when you account for multiple counting.

But Japan’s success in patenting only tells part of the story. Patents are often awarded for incremental achievements; for instance, improving the clarity of photos on a cell phone camera rather than coming up with a unique new design. So it’s likely that incremental innovations inflate Japan’s patent figures. Another reason for Japan’s patent performance could be its concentration of manufacturing and particularly electronics industries. The “clustering” of competitors and demanding clients means that not only do companies have an incentive to come up with constantly improving products, but they also have a strong incentive to make sure they patent each improvement so as to avoid copying by competitors. Switzerland is the second highest patent-awarding country after Japan, no doubt bolstered by its cluster of big pharmaceutical companies.

Perhaps it’s an issue of quantity over quality. As John T. Preston, the former director of MIT’s Entrepreneurship Center, states, “The radical breakthrough patents that we see mainly come out of laboratories in the United States.” A number of truly innovative and useful inventions—such as cell phones, the Internet, and Windows—all have their origins in the United States. The Japanese may have plenty of ideas, but the real question should be, are they really that smart?

Prerna Mankad is a researcher at Foreign Policy.

More from Foreign Policy

A worker cuts the nose off the last Ukraine's Tupolev-22M3, the Soviet-made strategic aircraft able to carry nuclear weapons at a military base in Poltava, Ukraine on Jan. 27, 2006. A total of 60 aircraft were destroyed  according to the USA-Ukrainian disarmament agreement.
A worker cuts the nose off the last Ukraine's Tupolev-22M3, the Soviet-made strategic aircraft able to carry nuclear weapons at a military base in Poltava, Ukraine on Jan. 27, 2006. A total of 60 aircraft were destroyed according to the USA-Ukrainian disarmament agreement.

Why Do People Hate Realism So Much?

The school of thought doesn’t explain everything—but its proponents foresaw the potential for conflict over Ukraine long before it erupted.

Employees watch a cargo ship at a port in China, which is experiencing an economic downturn.
Employees watch a cargo ship at a port in China, which is experiencing an economic downturn.

China’s Crisis of Confidence

What if, instead of being a competitor, China can no longer afford to compete at all?

Federal Reserve Chair Jerome Powell testifies in the U.S. Senate in Washington on Sept. 24, 2020.
Federal Reserve Chair Jerome Powell testifies in the U.S. Senate in Washington on Sept. 24, 2020.

Why This Global Economic Crisis Is Different

This is the first time since World War II that there may be no cooperative way out.

Chinese President Xi Jinping (left) and Premier Li Keqiang applaud at the closing session of the National People's Congress at the Great Hall of the People in Beijing on March 11.
Chinese President Xi Jinping (left) and Premier Li Keqiang applaud at the closing session of the National People's Congress at the Great Hall of the People in Beijing on March 11.

China Is Hardening Itself for Economic War

Beijing is trying to close economic vulnerabilities out of fear of U.S. containment.