
Patent-based thematic investing is a forward-looking strategy that focuses on identifying companies at the forefront of innovation. By analyzing patent activity, it is possible to gain early insights into emerging technologies and disruptive trends, often years before they materialize into marketable products.
Patents are powerful indicators of a company’s potential for groundbreaking advancements, offering a unique glimpse into its research priorities and strategic direction. Sectors like artificial intelligence, biotechnology and renewable energy frequently showcase transformative developments rooted in intellectual property.
Companies with strong R&D activities and strategic patent portfolios are better equipped to capitalize on growth opportunities, maintain a competitive edge, and lead the commercialization of cutting-edge themes.
Patent analysis as an intelligence gathering tool
Patents data helps to identify disruptive developments as early as possible. Patent-based datasets are integral to unlocking the next phase of thematic investing and capitalizing on the growth of disruptive trends:

Leading technologies
As a rule of thumb, patents show with a lead time of 2-5 years in which technology companies will be active in the future.

Future revenue
A company with significant patent activity in a certain technology will likely develop and monetize a product in the coming years.

Disruptive trends
When translated into a systematic, transparent index strategy, it allows investors to access the more early-stage themes and those companies that are most likely to excel and, therefore, generate exponential revenues from them.

Competitive analysis
Through peer group patent analysis, it is possible to determine which companies are innovating the most and, therefore, likely to be the leaders of tomorrow within their field.
Key facts
STOXX partners with EconSight to access patent data:
- EconSight’s patent data allows identification of innovators in emerging technologies, mapping over 500 technologies through deep research and analysis.
- EconSight’s High Quality Patents (HQP) is defined as the number of active patents that a company holds that fall in the top 10% in terms of patent quality within the defined technology. The High Quality Patents metric allows for comparisons of patent strength between individual companies.
- EconSight’s Patent Specialization identifies companies that are focusing their research on a specific field and is defined as total number of active patents associated with the technologies divided by the total number of active patents the company has. It provides an indication of the importance of the identified technologies relative to the overall patent activities.
“A patent may be a powerful business tool allowing innovators to gain exclusivity over a new product or process, develop a strong market position and earn additional revenue through licensing. Patent protection is usually sought at the research and development (R&D) stage of the technology life cycle.”
Intellectual Property and Technology Transfer (WIPO)