Patents per capita is a widely used measure of technological capacity and innovation and a predictor of economic dynamism.   The numbers of patents generated in a community indicates the capacity for creative thinking and research activity, the commitment to support innovation, and the potential for the development of new commercial products and services.   While innovation in Massachusetts is an industry all to itself, employing 166,000 in the  “innovation services,” according to the Massachusetts Technology Collaborative’s 2004 Innovation Index, it has also paved the way for the creation of new industries that provide jobs and economic growth for the region.

How are we doing?

In 2003, patents were granted to Massachusetts’ innovators at a rate of about 61 patents per 100,000 residents.  The states with the next highest rate of patent awards among the seven Leading Technology States (LTS) were California and Minnesota, among the seven Leading Technology States (LTS) identified by the Massachusetts Technology Collaborative’s (MTC).  The number of patents issued in 2003 amounts to an increase of 8.3% over 2002 and places Massachusetts ahead of the other LTS in this widely-used measure of innovation  capacity and economic dynamism.

The Index reports patents activity in Massachusetts across several sectors, with Health Care as the most active area (28% of all patents), followed by Miscellaneous Industry & Transportation and Aerospace (21%), Computer Hardware and Software (18%), and Chemicals (10%).

In 2004, the number of patents issued per capita in Massachusetts dropped, but the Commonwealth's five-year average of patents per capita was still the highest of the leading technology states.