Innovation
Patent Applications
Description: This indicator measures the number of patent applications filed by inventors who report an address in Arizona. Only a minority of patent applications result in a patent granted, typically with a delay of at least two years from the date of application until the grant date. The number of patents granted is included as an output of innovation, in the idea generation subcategory.
The numbers of applications by Arizona residents from 2001 through 2006 are presented on the dashboard. The number of patent applications is adjusted for population growth by presenting the number per 100,000 residents. Only “utility” patents, also known as “patents for inventions,” are included.
Rationale: Inventive activity is a proxy for the quality of the innovation environment. Innovation requires both ability and creativity. Thus, the pace of patent applications is one measure of the region’s ability to innovate. The number of patent applications is considered an input to innovation, while the number of patents granted is considered an output of innovation. Since patent awards typically occur at least two years after the patent application, the number of applications is a leading indicator of the number of patents that will be awarded. However, only a minority of patent applications result in a patent granted.
Data Sources: U.S. Patent and Trademark Office (USPTO). National data are available online at http://www.uspto.gov/web/offices/ac/ido/oeip/taf/reports.htm#by_geog. State and county data come from a proprietary patent dataset that was supported by the Harvard Business School and was developed using data on granted patents provided by the USPTO. The matching of patents and inventors is done using a name matching procedure developed by Lee Fleming (Harvard Business School) and Deborah Strumsky (Department of Geography, University of North Carolina at Charlotte) which in turn builds on a name-matching algorithm developed by the National Bureau of Economic Research (NBER).
Comments on the Quality of the Data: Patent applications should not be confused with patents granted. A simple count of the number of applications does not distinguish between patents with considerable near-term commercialization potential and those with more nebulous marketability.
