The Relationship Between Patents And Technical Innovation

This thesis defines and discusses the position of innovation in modern society. Explored are the attempts to find an effective and reliable method for the measurement of innovation and innovative activity. Two schools of thought exist in reference to measurement, one suggesting the use of patents as the best indicator of innovative activity, and the other recommending alternative means not using patent data. The thesis proposes a method of measurement utilizing yearly patent counts. A model was developed using nine metals whose yearly production activity was correlated with patent counts associated with the same materials. This correlated data was then entered into best-fit equations to obtain fitted patent and activity life cycle curves. Differences in the origins of these fitted curves were interpreted as lags of time in the life cycle of the patent or activity allowing for comparisons between patents and innovative activity. The behavior of patents was found to be similar to that of the innovative process, making patents an accurate measure and representation of innovation.