Are we running out of new ideas? A look at patents and R&D (original) (raw)

The paper investigates the relationship between patents issued and R&D spending, exploring potential reasons for the declining ratio of patents to R&D investment. It suggests that non-technology factors may influence patent issuance, and discusses the complexities of measuring this relationship over time due to variable lag times and external influences. By employing a cross-sectional approach using state-level data from 1977 to 1998, the analysis examines how patents and R&D covary, aiming to shed light on the nature of innovation and technological progress.