Patexia Patent Insight 12: Foreign Entities Now Lead in USPTO Patent Grants
Foreign entities secured more patents from the United States Patent and Trademark Office (USPTO) in 2024 than domestic innovators, according to exclusive data from Patexia. The 2025 Patent Intelligence Report, set for release tomorrow, uncovers the drivers behind this milestone and its implications for businesses, policymakers, and IP professionals. Notable insights on foreign patent activity:
• Foreign entities received 50.5% of all USPTO patents in 2024, compared to 49.5% for U.S. applicants.
• Japan led foreign filings, claiming 12.10% of total grants, followed by China at 9.65%.
• Saudi Arabia recorded the highest growth rate of 19.34% YoY, reflecting its expanding focus on innovation.
The data highlights a fluctuating yet overall rising trend in the share of patents granted to foreign entities over the past five years. After dipping to 46.2% in 2023, foreign patent holders rebounded sharply in 2024, surpassing U.S. applicants for the first time with a 50.5% share. This shift underscores the growing influence of international innovation, driven by increased filings from several countries, including China. The milestone raises important considerations for U.S. businesses and policymakers, signaling intensified global competition and the need for strategic investment in domestic research and development.
Implications for U.S. Innovation and Policy
The increasing share of patents granted to foreign entities at the USPTO reflects a broader trend of globalization in technological innovation. While this influx of foreign patents introduces diverse technologies into the U.S. market, it also intensifies competition for domestic companies. This heightened competition can serve as a catalyst for U.S. firms to strengthen their research and development efforts, potentially leading to accelerated innovation. However, the growing prominence of foreign patent holders also presents challenges. U.S. companies may face increased risks of patent infringement litigation, necessitating more robust intellectual property strategies. Additionally, policymakers must consider the balance between fostering an open innovation environment and protecting domestic industries from potential adverse impacts.
Inside the 2025 Patent Intelligence Report
Patexia’s 2025 Patent Intelligence Report offers an in-depth analysis of the past five years’ patent landscape, highlighting key trends, top-performing firms and attorneys, and emerging shifts in innovation. The report provides exclusive insights into:
• Patent Activity: A detailed breakdown of the number of patents granted across high-tech, biotech, and other industries.
• Top Firms and Attorneys: Rankings based on both activity and performance, showcasing and benchmarking the most influential players in the field.
• Lateral Moves: A comprehensive look at attorney transitions between law firms, reflecting the evolving IP landscape.
• Growth and Decline Trends: A comparison of patent issuances in 2024 vs. 2023, identifying the fastest-growing and shrinking entities.
This report is a valuable resource for law firms, corporate IP teams, individual practitioners, business leaders, investors, and analysts. It offers data-driven insights to help benchmark performance, track trends, and identify strategic opportunities. Law firms can analyze their position and evaluate competitors, while companies can monitor patent activity and emerging players. Investors can analyze innovation trends, and recruiters can spot talent movement and firm growth. Overall, the report provides a comprehensive view of the patent ecosystem, enabling all stakeholders to make informed, strategic decisions.
The full report will be released tomorrow—you can always download a preview to explore key findings and summary from Patexia.