| Abstract: | Estimation of a varying parameter model reveals that the trend of patents issued in England accelerated markedly in 1757. Similar results are obtained when patents are weighted by the number of production processes in which the patented invention may be used. There is no evidence that the rules or regulations regarding patents changed around 1757, and investigation of the propensity to patent in individual industries, and of the industrial distribution of patents, does not reveal a systematic change in the propensity to patent. Therefore, an acceleration in patentable invention must have caused the acceleration in patenting. The increase of the growth rate of patenting preceded an increase of the growth rate of total factor productivity, suggesting a causal relationship. Additionally, the fluctuation of patents around trend is much smaller after 1757, which reflects a widely based increase in patentable invention. Finally, the 1762 to 1851 period was characterized by an increased growth rate of patents and invention per person; England had entered her “Age of Invention.” |
