Figure 1-11 



U.S. Patent Balance with 



Selected Countries, 1966-73 



(Thousands) 

 20 



18 - »***""•.., 



Canada 



16 ^»' 



12 - 



10 - 



>>'• 







United Kingdom 



Other E.E.C, countries ' 



■■"■iiiiii,,, 



4 



^^ ^ ^^ Japan 

 2 V 



WestGermany ..^ 



-2111 *!*** I I 



1966 '67 '68 '69 70 71 72 



I Other European Economic Community (E E CI countries include Betgium, 

 Denmarl(, Ireland, Luxembourg, and ttie Nettierlands Data are not available 

 for Italy, and are not reliable for France for use in this study. 

 SOURCE: World Intellectual Property Organization. 



International trends in technological 

 innovation 



Technological innovation is a complex process 

 culminating in the introduction of new and 

 improved products and processes. Several steps 

 are involved in bringing a new product into the 

 market, including successful research and 

 development which provide the technical and 

 engineering foundation for innovation. 

 Technological innovation is, in turn, one of the 

 more important factors in determining the 



productivity, economic growth, and inter- 

 national position of developed nations. •'° 



The indicators presented here concerning 

 international trends in technological innovation 

 are based upon a study conducted specifically for 

 this report. The study investigated 500 major 

 technological innovations (i.e., new products or 

 processes embodying a significant technological 

 change) which were introduced into the com- 

 mercial market'i between 1953-73. The 500 

 innovations studied were those receiving the 

 highest ratings among 1,300 major innovations 

 produced by Canada, France, Japan, the United 

 Kingdom, the United States^^ and West Ger- 

 many. An international panel of experts rated 

 the innovations based on their technological, 

 economic, and social importance. J-' 



The present indicators should be interpreted 

 with their several limitations in mind. The 

 number of innovations on which the indicators 

 are based is relatively small, particularly for 

 countries other than the United States, with the 

 result that the national trends presented are 

 somewhat tenuous. Furthermore, only the most 

 important innovations are represented by the 

 indicators, even though the more numerous 

 innovations of a less significant nature may have 

 a greater overall impact. Moreover, the 

 measures do not go beyond the initial introduc- 

 tion of the innovations into the market and, 

 thus, do not include information on factors such 

 as the economic benefits accrued by the in- 

 novating nations nor the international diffusion 

 of the innovations. Finally, the indicators do not 

 account for the negative impacts — such as job 

 displacement, environmental pollution, or in- 



^0 For further discussion of these relationships see: The 

 Condilions for Success m Techtwlogical Innoviilimi, Organisation for 

 Economic Co-operation and Development, 1971, and Robert 

 Gilpin, Technology. Economic Growth, ami Internahonal Com- 

 petiliveness. U.S. Congress, Joint Economic Committee, ^ath 

 Congress, 2nd Session, 1975. 



^' Some innovations were brought into the commercial 

 market after havmg been first introduced in the government 

 market. 



32 The U.S. innovations are more fully analyzed in the 

 "Industrial R&D and Innovation" chapter of this report. 



-" For further information on the methodology and results 

 of the study see Indicators of International Trends in Technological 

 Innovation. Gellman Research Associates, Inc., 1975. (A study 

 commissioned specifically for this report). Other topics 

 investigated in the study but not discussed here include: the 

 characteristics of the innovating companies, the role of basic 

 and applied research in the development of each innovation, 

 and the utilization of patents and licensing in acquiring the 

 technology associated with each innovation. 



18 



