About Huawei and its Relevance
Huawei Technologies Co. Ltd., a leading global provider of information and communication technology (ICT) infrastructure for both enterprise and mass-market consumers, has announced that approximately 2.7 billion devices using 5G technology incorporate some of its patents. This highlights Huawei’s significant role in the global 5G ecosystem and its commitment to research and development (R&D).
Investment in Research and Development
Huawei has consistently invested heavily in R&D, with around 20.8% of its total revenue directed towards these efforts. Over the past decade, Huawei has invested approximately 1.25 trillion yuanes in research activities across its global laboratories.
Patent Portfolio and Global Leadership
Huawei holds more than 150,000 active patents and is the global leader in the Patent Cooperation Treaty (PCT) system since 2014. The company’s patent portfolio includes over 50,000 in China, 29,000 in the United States, and 19,000 in Europe. Huawei attributes its growth to a combination of scientific and technological advancements and customer needs, focusing on market demands and generating value for its users through disruptive innovations.
Annual Investment in R&D
Huawei has maintained an annual investment of over 10% of its revenue in R&D, peaking at 20% in recent years. In 2024, the company allocated 179,700 million yuanes (approximately 25.3 billion USD) or 20.8% of its total revenue to innovation. Over the last decade, Huawei’s cumulative investment in R&D surpassed 1.249 trillion yuanes, consistently ranking among the top six global spenders on industrial R&D according to the EU Industrial R&D Investment Scoreboard.
Patent Expansion and Global Recognition
Since its first patent application in China in 1995, Huawei has expanded its portfolio to the United States and Europe, achieving levels comparable to sector leaders in terms of patent applications and granted patents. In 2008, Huawei topped the global Patent Cooperation Treaty (PCT) ranking with 1,737 published applications. By 2024, the company had 6,600 applications, demonstrating continuous growth in its patent filings.
Top Ten Inventions and Licensing Leadership
Huawei has celebrated the “Top Ten Inventions” event since 2015, recognizing patented technologies with high potential for generating new products, contributing key features to the industry, and creating significant value for clients and partners. Huawei maintains a global leadership position in technology licensing, with over 2.7 billion 5G devices, 1.2 billion Wi-Fi equipment, and 3.2 billion multimedia devices utilizing its patents.
Licensing Agreements and Cross-Licensing
In 2024, Huawei signed 22 new licensing agreements, bringing the total to 233 active contracts. The company has historically paid three times more in royalties than it has received, demonstrating its commitment to fair licensing practices. Huawei maintains cross-licensing agreements with industry peers such as Nokia, Ericsson, Amazon, Samsung, and Sharp.
Key Questions and Answers
- What is Huawei’s role in the 5G ecosystem? Huawei plays a significant role by providing essential patents for over 2.7 billion 5G devices worldwide.
- How much does Huawei invest in R&D annually? Huawei invests around 20.8% of its total revenue in R&D, with investments peaking at 20% in recent years.
- What is Huawei’s global patent leadership position? Huawei leads the Patent Cooperation Treaty (PCT) system since 2014 and holds more than 150,000 active patents worldwide.
- How has Huawei’s patent portfolio grown over the years? Huawei’s patent portfolio has expanded from 1,737 published applications in 2008 to 6,600 in 2024, showcasing consistent growth.
- What is Huawei’s licensing strategy? Huawei maintains a leadership position in technology licensing, with cross-licensing agreements with industry peers like Nokia, Ericsson, Amazon, Samsung, and Sharp.
