Where is all the patent work coming from?

Last week this blogger spoke at "Sowing and Reaping", billed as a "PCTea Party". This event marked the 10th anniversary of Michael Factor's IP Factor blog. Michael, in his inimitable style, has reported the whole thing here.  Most of the people who attended were either working for themselves or in small IP practices.

In an entertaining address to the assembled audience, Michael reviewed the latest batch of patent filing statistics and observed as follows:

• in recent years there was an observable downward trend in the filing of Israeli patent applications
  
• over the same period of time, the larger patent practices appear to have grown in size, while the number of small practices seems to have risen
  
• in general, patent work seems to remain profitable.

It would be good to know how this combination of factors (with a small 'f') can be best explained. And is the same effect experienced in other jurisdictions?  Readers: do let us know!