New indicators linking patenting and business R&D expenditure

The paper presents a new national level indicator based on shares of OECD aggregate ‘external’ patent applications world-wide. It provides the first reliable trend data for patent applications since new patent application procedures were introduced in the 1980s. The trends show a strong correlation with business R&D expenditure (BERD) trend data similarly based on shares of OECD aggregate BERD, reaffirming a relationship observed in previous studies using granted patents. However the reliability of the current indicator over an extended 20 year period shows that in two cases, the US and UK, there is divergence in correlation over part of the period studied. This aspect of the study provides evidence that the surge in external patenting in the US, over the period 1989 to 1996, is not driven by BERD and strongly suggests public sector research as a driver. This result shows that the new patent applications indicator can monitor factors in national systems not easily observed by other means. In this case it shows potential for monitoring the success of policies in driving public sector research towards commercial outcomes.