Introducing the world’s first Universal Technology Taxonomy

Why create a Universal Technology Taxonomy?

Being able to classify every patent in the world into manageable, sensible groupings would be so helpful.

Only by having that level of access and transparency can you compare companies and technologies objectively and consistently and provide answers to many strategic questions.  

Growth in today’s economy is driven by investment in innovation and disruptive technologies.

Patents are a great way to understand the technologies that are being developed. Viewing the world through a technology lens provides a powerful and insightful way to look at both organisations as well as the underlying technology.

Is there anything that could deliver that insight into all the world’s patents at a technology level?

Don’t get fooled that CPC codes could give you this answer, there are over 300,000 of these – too many to get your head around or to provide any form of meaningful comparison.

Understand the external environment

As a leader in the field of strategic patent intelligence, Cipher was asked to come up with a universal solution to this problem. The challenge was set in the following terms:

• How best to understand global technology trends, key to a broad range of R&D investment decisions and identification of new entrants
• Fast and efficient access to benchmarking data and competitive intelligence to inform patenting strategy
• Communication and mitigation of patent risk, through rapid assessment of portfolios owned by both operating companies and non-practising entities (NPEs)

The Universal Technology Taxonomy delivers against the need to know what’s going on from two fundamental perspectives. First, what technologies a company owns and how companies compare. Secondly, the global and regional trends relating to one or more technology areas.

Let’s look at a few examples:

• Corporate Analysis: Using IBM as an example, Fig 2 is the UTT view of the technologies currently owned by the group. With that a starting point, you can take the analyses in any direction e.g. which areas are growing or shrinking?

Figure 2: Corporate analysis – IBM

• Cohort analysis: often the question is how do companies compare? Fig 3 is the FAMGA (or should it now be MAMGA?) companies compared applying the UTT. While often treated as a benchmark group, their investment in technologies is very different attributable to their current and future strategies.

Figure 3: Cohort Analysis – FAMGA

• Technology trends: The ability to focus on one or more of the technology areas is essential. Fig 4 is an analysis of the top owners in Surgical Robotics, one of the UTT Superclasses.

Figure 4: Technology analysis – Surgical Robotics

Classification is key to understanding, which is why taxonomies are universally adopted in all fields of science, economics and finance. The adoption of corporate classifications such as SIC codes and NAICS codes are just one example of this.

The Universal Technology Taxonomy has significant potential to change the way companies are analysed and understood. Our hope is that the UTT is widely adopted not only by patent owners, but those focussed on increasing transparency around intangible assets. 

Read more about the Universal Technology Taxonomy