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1.1 Patent statistics as technology indicators

This publication describes technology outputs through data on patents. The topic under examination is domestic patenting via the National Board of Patents and Registration of Finland. International patenting is described on the basis of data from the European Patent Office (EPO) and the United States Patent and Trademark Office (USPTO).

A patent is an exclusive right to exploit an invention commercially, granted for a limited term to the holder of the invention. At the same time, with the release into the public domain of patent data, it offers other parties the opportunity to utilise existing technical information against a fee. The significance of patenting is demonstrated by the sharp rise in the number of patent applications. In 2006, the EPO received roughly 135,000 patent applications. In the same year, 174,000 patents were granted in the United States. The use of patent databases in compiling technology indicators and technological research in general is facilitated by the universal accessibility of abundant, internationally comparable, varied and commensurable data as long timer series.

Patent indicators are the most important and frequently used measure of the innovation output; after all the patent is associated by definition with the innovation. At the same time these indicators describe the transfer of knowledge between enterprises, countries and different fields of technology. The growth of internationalism is, in turn, reflected in the increasing divergence of patent applicants’ and inventors’ countries of residence.

However, patent statistics tend to give only a partial or incomplete picture of new technology, because not all new inventions are or can be patented. The number of patent applications is limited by the slow processing, which usually takes a few years. The costs of a patent may also run up to tens of thousands of euros. In addition, the relatively high maintenance costs must be borne in mind.

Comparisons between countries are complicated by the fact that the grounds for granting patents and patent regulations in different countries can differ significantly from one another.

The economic significance of patents varies. Inventions with potential for commercial exploitation may consciously be left outside the protection awarded by a patent. It may be more lucrative for an enterprise to keep the invention secret than to release it to the public domain through patenting. An invention can also be protected by trademarking, among other things.

Patented products or methods may be major innovations of substantial economic value or minor improvements to existing products or processes. In statistics, however, all patents are equal. The significance of patenting to the national economy or to an individual enterprise may be considerable: the funds invested in the development of patents may be paid back several times over.

Source: Patenting 2006. Statistics Finland

Inquiries: Markku Virtaharju (09) 1734 3290

Director in charge: Kaija Hovi

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Updated 25.10.2007