10. Hitachi Ltd. JP
> 2011 patent grants: 1,465
> Country: Japan
> Profits: $-1.1 billion (25th biggest loss)
> Sales: $96 billion (49th most)
> 5-yr. stock price change: -47.7%
> Value: 473rd largest

Hitachi is the 38th-largest company in Japan. It is a massive and incredibly diversified corporation, with major stakes in 11 separate industries, including electronics, construction, automo
tive systems and telecommunications. With such an array of businesses, the company is involved in a great many research and patent applications. It was awarded 1,465 U.S. patents in 2011. But the company’s shares are down 47.7% in the past five years, an underperformance of roughly 40 percentage points compared to the S&P 500 over the same period.

Also Read: U.S. Becomes Odd Savior of Global Car Industry

9. Hon Hai Precision Industry Co. Ltd. TW
> 2011 patent grants: 1,514
> Country: Taiwan
> Profits: $2.4 billion (233rd most)
> Sales: $61.2 billion (106th most)
> 5-yr. stock price change: -63.69%
> Value: 189th largest in world

Hon Hai Precision Industry is the largest company in Taiwan, with more than $60 billion in sales last year. While this company name may be unfamiliar to some, most will recognize Foxconn, the company it purchased in 2010. Foxconn is the largest contract electronic manufacturer in the world. Shares of Hon Hai are down 63% in the past five years. Since 2009, the company’s annual patent rate has doubled.

8. Seiko Epson Corp. JP
> 2011 patent grants: 1,533
> Country: Japan
> Profits: -$211.8 million (66th biggest loss)
> Sales: $10.5 billion (740th most)
>5-yr. stock price change: -68.25%
> Value: 1,596th largest in world

Seiko Epson, known as just Epson by most Americans, is a manufacturer of printers and other consumer electronics devices, including LCD televisions and personal computers. Last year, the U.S. Patent Office granted the company more than 1,500 patents. One of Epson’s primary businesses was inkjet printers, which have been rendered nearly obsolete by laser printers and a lower demand for printing in general due to cloud computing. Over the past five years, the company has ramped up its R&D department, generating approximately 100 more patents each consecutive year than the previous one. At the same time, the company shares have plummeted nearly 70%. Last year, the company lost $211 million.

7. Sony Corp. JP
> 2011 patent grants: 2,286
> Country: Japan
> Profits: -$436.6 million (51st biggest loss)
> Sales: $77.2 billion (75th most)
> 5-yr. stock price change: -76.28%
> Value: 456th largest in the world

Sony is one of the largest and most recognizable consumer electronics companies in the world. It is also one of the most struggling major companies in the world. Sony has steadily increased its patent portfolio, producing 805 more patents in 2011 than in 2007. Last year, the company lost $436 million. Over the past five years, company shares have lost more than three-quarters of their value. The company continues to struggle in its competition with rivals Apple and Samsung, both of which turned major profits last year.

Also Read: Saudi Arabia Targets $100 Oil

6. Microsoft Corp.
> 2011 patent grants: 2,311
> Country: United States
> Profits: $20.6 billion (6th most)
> Sales: $66.7 billion (97th most)
> 5-yr. stock price change: -10.97%
> Value: 50th largest in the world

Microsoft’s awarded patents dropped substantially in the past year. In 2010, the company was awarded 3,094 patents in the U.S. Last year, the number was just 2,311, resulting in the U.S. company being passed by Japanese companies Canon, Panasonic and Toshiba. The software and computer company’s stock has remained stable, with share prices down 11% in the past year. This is roughly in line with the rest of the market. The company’s consistent revenue stream from its Windows operating system, server products and Xbox game console, among others, allows it to invest heavily in research and development. Last year, the company earned $20.6 billion, the sixth-biggest profit of any company in the world.