Getting Patents and Economic Data to Speak to Each Other: An 'Algorithmic Links with Probabilities' Approach for Joint Analyses of Patenting and Economic Activity

35 Pages Posted: 17 Oct 2012

See all articles by Travis J. Lybbert

Travis J. Lybbert

University of California, Davis - Department of Agricultural and Resource Economics

Nikolas Jason Zolas

U.S. Census Bureau - Center for Economic Studies; University of California, Davis

Date Written: September 1, 2012

Abstract

International technological diffusion is a key determinant of cross-country differences in economic performance. While patents can be a useful proxy for innovation and technological change and diffusion, fully exploiting patent data for such economic analyses requires patents to be tied to measures of economic activity. In this paper, we describe and explore a new algorithmic approach to constructing concordances between the International Patent Classification (IPC) system that organizes patents by technical features and industry classification systems that organize economic data, such as the standard International Trade Classification (SITC), the International Standard Industrial Classification (ISIC) and the Harmonized System (HS). This ‘Algorithmic Links with Probabilities’ (ALP) approach incorporates text analysis software and keyword extraction programs and applies them to a comprehensive patent dataset. We compare the results of several ALP concordances to existing technology concordances. Based on these comparisons, we select a preferred ALP approach and discuss advantages of this approach relative to conventional approaches. We conclude with a discussion on some of the possible applications of the concordance and provide a sample analysis that uses our preferred ALP concordance to analyze international patent flows based on trade patterns.

Suggested Citation

Lybbert, Travis J. and Zolas, Nikolas Jason, Getting Patents and Economic Data to Speak to Each Other: An 'Algorithmic Links with Probabilities' Approach for Joint Analyses of Patenting and Economic Activity (September 1, 2012). US Census Bureau Center for Economic Studies Paper No. CES-WP- 12-16, Available at SSRN: https://ssrn.com/abstract=2161982 or http://dx.doi.org/10.2139/ssrn.2161982

Travis J. Lybbert (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

Nikolas Jason Zolas

U.S. Census Bureau - Center for Economic Studies ( email )

4700 Silver Hill Road
Washington, DC 20233
United States

University of California, Davis ( email )

One Shields Avenue
Apt 153
Davis, CA 95616
United States

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