The propensity to patent

This paper analyzes the relationship between 1974 R&D expenditures and invention patenting by 4,274 narrowly-defined lines of business in 443 U.S. industrial corporations. The probability of non-zero patenting rose systematically with company-financed R&D outlays, as did the number of patents received. Within industries, patents tended most frequently to rise in proportion to R&D; among the exceptions, the tendency was toward diminishing returns. Variables measuring overseas sales, federal R&D support, diversification, scope of invention use, and invention type had only modest explanatory power. There was no significant evidence of disproportionate patent accumulation in the more highly concentrated industries.