U.S. semiconductor companies perennially rank high on the list of top patent recipients. This is partly because U.S. semiconductor companies invest a higher share of sales into research and development than any other U.S. industry. On average, the U.S. semiconductor industry invests about one-fifth of total sales into R&D. While this is a huge amount, it does not guarantee company success in the industry. Rather, it is simply the business model that firms must adopt to compete in such a highly innovative and competitive industry. It therefore comes as little surprise that much of this investment in R&D results in a large number of inventions that receive patent protection.
For such an R&D-intensive industry to thrive, patents and other forms of intellectual property must be protected. Only in such an environment can innovation continue. This is why one of SIA’s top policy priorities is the protection of intellectual property. Intellectual property is the lifeblood of the U.S. semiconductor industry, and its protection is critical for continued U.S. global leadership—and continued high rankings on future lists of top U.S. patent recipients!