FROM SPARK PLUGS TO PLUGINS

BY HAOPENG WANG, MATT LUBY AND ED WHITE
FROM SPARK PLUGS TO PLUGINS
WILL 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 SUMMARY
Innovation 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 METHODOLOGY
Inventors 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 proportional
to the number of inventors
both 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 INNOVATORS
The 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 SAFETY
The 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 COMMUNICATIONS
The 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.
65
Citations
2011 2012 2013
69
Citations
98
Citations
GROWTH OF AUTOMOTIVE PATENTS CITING COMMUNICATION PATENTS

INNOVATION IN AUTOMATION
Since 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
ENTERTAINMENT
As 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
EMERGE
Innography’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.
CONCLUSION
The 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
ipinfo@cpaglobal.com
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 ipinfo@cpaglobal.com.
ABOUT INNOGRAPHY
Innography 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 GLOBAL
CPA 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.
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