FROM SPARK PLUGS TO PLUGINS

BY HAOPENG WANG, MATT LUBY AND ED WHITE

FROM SPARK PLUGS TO PLUGINSWILL AUTO MANUFACTURERS CONTINUE TO OWN KEY VEHICLE BRANDS OR WILL IT COMPANIES TAKE THEIR PLACE?

Using IP insight to track the movement of talent between the motor and IT industries, and what this indicates for the future of the automotive industry.

FROM SPARK PLUGS TO PLUGINS. A WHITE PAPER FROM CPA GLOBAL INNOVATION INTELLIGENCE SERVICES

CPAGLOBAL.COM | PAGE 2

CONTENTS

3 Executive Summary

4 Research Methodology

5 A Transfer of Skills Between Industries

7 The Race for the Best Innovators

8 Innovation in Safety

9 Innovation in Communications

10 Innovation In Automation

10 Innovation Related to in-car Entertainment

11 Collaboration is Beginning to Emerge

11 Conclusion

11 References

12 About the Authors



EXECUTIVE SUMMARYInnovation has been a constant

in the automotive industry.

Initially this was driven by the

need to increase speed and

reliability, then by safety and

more recently by environmental

issues. In the past, innovation

relied heavily on mechanics and

engineering, but today’s R&D

and patents rely on technology

that has the potential to

transform the industry and

radically change the driving

experience.

Technology companies and

automakers are looking to shape

the future of the automotive

sector. Both have aspirations to

dominate the next generation of

automotive development. Each

faces stark choices: collaborate,

compete or get acquisitive.

Patent analysis reveals that

innovation and exploration is

now being developed from

behind a keyboard rather than

from a workshop. Alongside the

traditional career paths such as

manufacturing, retail, repair and

maintenance an increasingly

important role is being played by

software and communications

experts.

This raises a fundamental

question: does the future of the

industry belong to car makers or

technology companies?

BEHIND THE HEADLINES OF GOOGLE’S SELF-DRIVING CARS, AND A RUMOURED APPLE CAR PROJECT, TECHNOLOGY COMPANIES ARE INVESTING SIGNIFICANTLY IN AUTOMOTIVE.

Recent reports have linked Samsung

Electronics with the potential

purchase of the Magneti Marelli auto-

parts company from Fiat Chrysler

Automobiles NV - mainly because of

its lighting, in-car entertainment and

telematics business expertise.1

In August 2016, Uber acquired little

known self-driving technology

company. Otto2 was founded in

January 2016 by two former Google

employees, who worked on its

self-driving car project. It now has

91 employees, including former

engineers from Tesla and Apple.

Ford is the latest automaker to

announce a targeted delivery of self-

driving cars by 20213. The company

is collaborating with Georgia

Technology Institution to disclose an

invention focusing on a video data

streaming method to transmit data

from multiple cameras mounted on

a remotely controlled vehicle. One of

the inventors had previously worked

for Samsung in video transmission.



RESEARCH METHODOLOGYInventors named on patents are

an excellent source of insight

into industry trends. Patent data

contains strong technical detail

giving precise intelligence on the

technical expertise owned by

one company or another.

Patents are typically “assigned

to” an employer, but trends in

invention can be gleaned from

named patent holders, enabling

competing businesses to seek

out the most relevant talent for

their needs. As the automotive

and technology industries

have to work more closely,

the transfer of talent between

the two industries provides a

unique insight into the ambitions

and objectives of each in the

automotive sector.

More than 230,000 US patent

publications related to the

automotive industry were

analysed. Named inventors

were identified and compared

to those of IT companies.

Research was conducted using

Innography®, an award-winning

patent search and analysis

software platform. Innography, a

CPA Global company includes all

issued US patents from 1900 to

present and all published patent

applications since 2001, including

full text for all US documents

dating back to 1976. In addition

to weekly updates from the

USPTO, Innography makes more

than 5,000,000 data updates

weekly covering more than 100

jurisdictions globally.

The research initially identified

25 career transitions between

the two industries, most from

IT to automotive companies.

While this investigation sample

demonstrates the talent transfer,

inventor migrations will also have

occurred between companies

not included in this study.

Also, inventors who moved but

did not file patent applications

in the United States in the given

period in either industry are not

included, nor are movements

outside of the selected

companies. Therefore, the level

of talent transfer is likely to be

much larger, particularly when

including inter-country moves

between Japan, Korea, Germany,

Italy or France.

OUR RESEARCH FOCUSED ON TOP COMPANIES IN THE AUTOMOTIVE AND IT INDUSTRIES

Amazon

Apple

eBay

Ericsson

Facebook

Google (Alphabet)

HTC

Huawei

Intel

Microsoft

Nokia

PayPal

Samsung

Twitter

Uber

Yahoo

IT COMPANIES

BMW

Daimler AG

Fiat-Chrysler

Ford

GM

Honda

Hyundai

Kia

Mazda

Nissan

Peugeot Citroën

Renault

Suzuki

Tesla

Toyota

Volkswagen Group

AUTOMAKERS



Ford

Intel

Google

Honda

VW

Tesla

Apple

Samsung

Hyundai

GM

Toyota

Ericsson

Automaker

Legend

IT

1 inventor

2 inventors

Circle size is proportionalto the number of inventorsboth joining and leaving

Microsoft

A TRANSFER OF SKILLS BETWEEN INDUSTRIES

This illustration shows inventor

migration between selected

automakers and IT companies.

The arrows indicate the direction

of transfer of inventors from

one company to another. The

sample shows Hyundai, GM and

Ford as leading automakers

that are attracting talent from

technology companies. A total

of six inventors have transferred

from Samsung to Hyundai. The

expertise of these inventors

(in wireless communications,

data processing and sensor

technologies) demonstrates the

skills that automotive companies

are seeking.

TRANSFER OF EXPERTISE BETWEEN SELECTED AUTOMOTIVE AND IT COMPANIES



Tesla, the manufacturer of

electric vehicles, has recruited

one inventor from Apple

with expertise in hardware

development of power

electronics. Similarly,

Volkswagen attracted one

inventor from Ericsson

with experience in wireless

communication technology.

Samsung is another IT company

that has lost inventors – to

GM, Hyundai and Ford. These

companies have recruited

expertise in artificial intelligence

and video streaming respectively.

Conversely, Samsung has

attracted expert inventors from

Toyota in the areas of vision

sensors and battery technology.

Google (Alphabet) has recruited

inventors from Toyota, GM

and Honda, bringing with

them expertise in not only

vehicle controls, but also in

analysis of image and video

data for applications such as

lane detection, traffic signal

recognition and weather

conditions which will facilitate

motorist safety.

EXAMPLE A recruit for Hyundai provided expertise that fueled a patent which improved the reliability of message routing by changing the moment of message transmission. This solved the communication efficiency problem when a rapid increase in communication, to, from and within vehicles is experienced.



THE RACE FOR THE BEST INNOVATORSThe majority of talent migration

has taken place since 2008,

with Google’s self-driving

car program acting as a

springboard. During the last ten

years Google has been the most

consistent technology company

in attracting expertise from the

automotive industry.

Sebastian Thrun: Before

creating Google’s self-driving

car program, Thrun led the

Artificial Intelligence Laboratory

of Stanford University and

created the robotic vehicle

(Stanley) that won the 2005

Defense Advanced Research

Projects Agency (DARPA)

Grand Challenge. During his

time at Stanford, Thrun

collaborated with Toyota and

filed several patents that are

owned by Toyota.

Dmitri Dolgov: Part of Thrun’s

team at Stanford who worked

for Toyota before joining Google,

Dolgov has close ties between

Google and Toyota, which may

explain why the Toyota Prius

and Lexus vehicles were chosen

by Google as the test fleet of

self-driving cars.4 However, with

Toyota having just increased its

investment in self-driving cars,5 it

will become both a collaborator

and competitor of Google.

Ron Rotstein: Some inventors

have migrated from automotive

to IT companies, but it appears

that patents filed after this

transition were not always

directly relevant to their new

markets. Inventor Ron Rotstein

worked for GM on vehicle

positioning technology, but

was also involved in another US

patent application while working

for Intel on a personal electronic

device tracker.

INVENTOR TIMELINE OF TRANSFER-IN

KEY TALENT BEING SOUGHT BY THE TECHNOLOGY INDUSTRY

AUTOMAKERS

Hyundai

GM

Toyota

Ford

Volkswagen

Tesla

IT COMPANIES

Google

Samsung

Microsoft

Intel

2006 2007 2008 2009 2010 2011 2012 2013 2014



The active recruitment of key

talents, combined with data

from the patents they have filed,

gives a strong indication of the

future direction that automotive

invention and development

will take. In particular four key

technologies appear to be in

demand from both automakers

and IT companies. These will

play a considerable role in the

future of automotive:

• Innovation in safety

• Innovation in communications

• Innovation in automation

• Innovation related to in car entertainment

Each of these areas will facilitate

future developments directly but

will also combine to offer entirely

new opportunities for the

automotive industry as a whole.

WHAT PATENT INFORMATION AND THE INTER COMPANY TRANSFER OF INVENTORS TELLS US ABOUT THE FUTURE OF AUTOMOTIVE

INNOVATION IN SAFETYThe past decade has seen new

developments in safety such as

detection of a vehicle in a blind

spot, adaptive cruise control

and lane departure warning.

Automakers such as Volvo and

Infiniti have been at the forefront

of these technologies which

have then filtered down to other

manufacturers.

Google’s recruitment of

inventors with expertise in

traffic signal recognition, lane

detection and weather condition

information hints at the IT

company’s ambitions. Consider

how a combination of Google

Maps, GPS information, traffic

information and weather data

could combine to offer a highly

functional and assistive hybrid

navigation system of the future.

This offers drivers a safer and

better driving experience.

Furthermore Smart Cities could

use the technology to direct

drivers to less busy routes in real

time, avoid accident blackspots

or reduce pollution.

The addition of traffic signal

information – part of a range of

new safety functions collectively

known as Advanced Driver

Assistance Systems (ADAS)

– also hints at a future where

Artificial Intelligence reads road

signs through a mobile device’s

camera or vehicle tracking

system, identifying the signal

and issuing a warning if the

driver needs it. For example a

driver traveling over the speed

limit would automatically be

signalled to slow.



INNOVATION IN COMMUNICATIONSThe research shows one of

the most sought after areas of

expertise by automakers is data

communication technologies

such as wireless transmission,

video streaming and

network capabilities – all new

technologies to the automotive

industry but critical for self-

driving cars, assistive driving

technology and vehicle and

driver diagnosis.

Searching recent patent filings

in automotive technologies

that also cited patents in

communication technology

demonstrates the extent to

which inventors are seeking to

apply communication innovation

in vehicles.

United States patents and

published applications filed since

2011 with an International

Classification Code of B60

(Vehicles in General) and

their backward citations show

a growth in citations with

classification code H04 (Electric

Communication Technique)

during the years of 2011-2013.

Reliable wireless

communications has wide

ranging implications for the

future of the automotive

industry.

It can be used to monitor

vehicle performance. Wireless

connectivity allows diagnosis to

be instantly shared by service

and support partners, auto

manufacturers and emergency

services. This enables over the

air diagnosis of issues, protecting

vehicles and drivers from

additional damage as well as

providing auto manufacturers

with insight into common issues.

Likewise telematics insurance

(where someone’s driving

behaviour influences the

cost of cover) is in its infancy.

Combining vehicle condition

and maintenance with miles

travelled, time of day, weather

conditions and real time

speed will enable a new level

of granularity around the risk

associated with any particular

driver and vehicle.

Reliable wireless

communications everywhere

is still some distance from being

ubiquitous but the development

of the 5G standard of cellular

communications is being

heralded as an enabler for

a new range of connectivity

options, including autonomous

vehicles.

65Citations

2011 2012 2013

69Citations

98Citations

GROWTH OF AUTOMOTIVE PATENTS CITING COMMUNICATION PATENTS



INNOVATION IN AUTOMATIONSince the launch of the first

automatic car in the 1940s,

drivers have been bombarded

with innovation to make driving

easier and less labour intensive.

Assisted braking technology,

power steering and cruise

control are just three examples

of how cars are now are less

reliant on a driver for core

functionality.

Technology companies and

automakers are creating and

developing automation further

than ever before – and it is

an area where demand for

innovation is intense.

Short and long range sensor

technologies are facilitating

driver automation tools such

as parking assistance as

well as forewarning drivers

about upcoming hazards and

facilitating adaptive cruise

control.

As sensors are combined

with GPS technology, live

traffic feeds (facilitated by

wireless communications) and

engine management systems,

the activity of driving will

demand less involvement from

the driver. ‘Smart road systems’

embedded with sensors that

communicate with vehicles,

will increase the accuracy and

reliability of these systems.

INNOVATION RELATED TO IN-CAR ENTERTAINMENTAs automated vehicles take

more of the burden of driving,

opportunities to enhance and

develop in-car entertainment are

set to grow.

Head’s up displays, similar to

those used by the military, are

becoming more common place

on vehicles today, providing

the driver with access to critical

information without needing

to look away from the road.

These are likely to be enhanced

further with communications

information such as incoming

alerts and messages.

Streaming technologies will

facilitate a far richer choice of

entertainment – from global

radio stations to relevant

travel information. Recent

developments in voice to text

will provide drivers with access

to simpler and safer ways to

communicate on the move.



COLLABORATION IS BEGINNING TO EMERGEInnography’s Patent Market

Tracker provides US patent

acquisition information from

extracted patent assignment

data for the past five years.

No IP acquisitions between

automakers and IT companies

within the companies cited were

recorded, despite the wider

collaboration between the two

industries.

The lack of patent transfers

conflicts with recent reports

of collaboration between the

industries. Hyundai and Google

are discussing working together

to produce fully self-driving cars

by 2030.6 Commercial activities

such as this are likely to lead

to further collaborations in

research and development, co-

filing of patent applications and

intellectual property acquisitions.

CONCLUSIONThe future shape of automotive

is uncertain. This is being fueled

by the proactive acquisition

of talent from the technology

industry to automotive and vice

versa. Both industries are looking

to complement core skills with

talent from the other in a land

grab for control.

As traditional IT hardware

business continues to

commoditise technology,

companies are looking for new

industries to disrupt. The global

automotive industry, with almost

90 million annual sales, offers an

opportunity to extend to a huge

industry with global reach.

The future of driving will be

influenced by both collaboration

and competition between

technology companies

and automakers. Will auto

manufacturers continue to

own key vehicle brands or will

IT companies take their place?

How will hardware and software

companies most effectively

drive this new market? What is

clear is both auto brands and IT

companies are actively seeking

new skills drawn from outside

their conventional industries.

1 http://www.bloomberg.com/news/articles/2016-08-03/samsung-said-in-talks-to-buy-assets-of-fiat-auto-parts-

unit-ireppnz7

2 http://www.bloomberg.com/news/features/2016-08-18/uber-s-first-self-driving-fleet-arrives-in-pittsburgh-this-

month-is06r7on

3 http://www.usatoday.com/story/tech/news/2016/08/16/ford-promises-driverless-transport-2021/88826072/

4 http://spectrum.ieee.org/transportation/advanced-cars/how-googles-autonomous-car-passed-the-first-us-

state-selfdriving-test

5 http://www.wsj.com/articles/behind-toyotas-late-shift-into-self-driving-cars-1452649436

6 http://www.bloomberg.com/news/articles/2016-08-17/hyundai-says-it-s-in-talks-about-further-partnership-

with-google

REFERENCES



ABOUT THE AUTHORS

MATTHEW LUBY DIRECTOR AND LEAD CONSULTANT, TECHNOLOGY INTELLIGENCE

For the last ten years, Matthew has been working with clients across the

globe including most of the world’s largest automotive and technology

companies. He currently leads CPA Global’s Technology Intelligence and IP

Portfolio Optimization and Strategy practices in Asia Pacific. He is an expert

at technology analytics for corporate R&D and patent portfolio management

to help companies realise value from their innovation. He worked for eight

years for the USPTO as a mechanical engineering patent examiner in

automotive electrical control technology. Matthew has a JD from the George

Washington University Law School.

ED WHITE VICE PRESIDENT, TECHNOLOGY AND INNOVATION INTELLIGENCE

Ed leads the Technology Intelligence practice at CPA Global. He has

ten years’ experience as a manager and consultant within innovation

intelligence and intellectual property. Ed has a background in developing

new communication methods for advanced statistical analysis of R&D

activity including patent strength measurement, scoring algorithms and

harmonisation of patent and non-patent data sources. Ed has worked with

hundreds of different client organisations across almost all R&D intensive

industries, delivering to Fortune 500 board members, government agency

heads and ministers, and CTOs/General Counsels. He has a Bachelor of

Engineering from the University of Nottingham in the UK.

HAOPENG WANG LEAD CONSULTANT

Haopeng is a lead consultant within the technology intelligence practice

focused on chemistry and engineering and has worked on projects in

multiple industries and technology fields such as automotive, catalysis,

composites, additive manufacture, food science and general materials

science. Haopeng has delivered several projects to major global automotive

companies with topics covering battery, emission, light-weight materials,

functional coatings and sensors. Haopeng has a background in R&D,

developing novel DNA sequencing approaches and is a member of the

USPTO patent bar.


For additional information,

contact us at [email protected]

INNOVATION INTELLIGENCE SERVICES This white paper is brought to you by our Innovation Intelligence Services group. Ideas have always

changed the world, but the pace of change had never been more explosive. CPA Global’s Innovation

Intelligence Services group produces commercial insight and powerful intelligence to help you

successfully navigate the ever-changing technology ecosystem in which your organisation operates.

For additional information, contact us at [email protected].

ABOUT INNOGRAPHYInnography provides patent search and intellectual property analytics software that helps the world’s

leading patent owners, innovators and decision-makers drive more business value from IP investments.

Correlating 100 million patent documents with financial, litigation, market and business data, Innography

helps clients track competitors, uncover lucrative revenue sources, preempt litigation claims, and stay

abreast of innovation trends. With more than 350 global clients across all product industry categories,

Innography is proud to achieve client satisfaction far above the industry average. Headquartered in

Austin, Texas, Innography is a CPA Global company. For more information, please visit Innography.com.

ABOUT CPA GLOBALCPA Global is the world’s leading IP management and technology company. We believe that ideas

change the world. Trusted by many of the world’s most respected corporations and law firms,

CPA Global empowers a global IP community to achieve excellence in IP management and realize

the potential of ideas. CPA Global does this by supporting the day-to-day delivery of IP tasks globally

and providing the right information at the right time, enabling professionals to make better IP decisions

for the future. CPA Global’s integrated suite of IP software, services and information is underpinned by

an outstanding global team of over 2,000 IP professionals, working together to help customers deliver

strategic value.

0057

FROM SPARK PLUGS TO PLUGINS

Documents

Transcript of FROM SPARK PLUGS TO PLUGINS