Useful Stats: Canadian Patent Applications per Capita, by Province

With the hopes of better understanding which policy environments encourage and support innovation, new research  from the C.D. Howe Institute, a Canadian public policy thinktank, examines which sectors and provinces drive Canadian patent intensity. Using a new database on patent applications in Canada, the authors find that inventors from Ontario and Alberta, in addition to inventors in the utilities, construction, and computers and electronics sectors produce a disproportionally large share of Canada’s patents, while inventors from Atlantic Canada or in the pharmaceuticals and medical equipment sectors are not producing a large share of patents. 

In Measuring Innovation in Canada: The Tale Told by Patent Applications, the authors examine patent applications by province of their first-listed inventor, relative to population measured in millions. Given the differences across provinces in both population and economic activity, the provinces also vary significantly in patent application activity. A major advantage of using  patent applications as a measure of innovation is that they represent a direct outcome of the research process, rather than an input such as R&D spending.

The general trend across Canadian provinces is quite clear – over the past decade, applications for patents have declined. Per capita patent activity increased throughout  the first three time periods (1990-1994, 1995-1999, and 2000-2004) in all of the provinces studied. From 2000-2004 to 2005-2009, average annual applications per capita declined in all of the provinces except Saskatchewan, although Manitoba experienced just a small decline. All of the provinces experienced declines in average annual applications per capita from 2005-2009 to 2010-2012.

Disproportionately large shares of inventors in Canada come from Alberta and Ontario. Ontario is home to a large concentration of Canada’s research universities, which likely contributes to its innovative nature. Of the 80 public universities in Canada, 23 are located within the province. Alberta has experienced the innovative spillover effects from an oil and gas boom and is a world leader in the biochemical industry.  On the other hand, patent applications in the provinces of Atlantic Canada are considerably lower than the national average.

SSTI has made the data on per capita patent applications by province available here, courtesy of the C.D. Howe Institute.

Average Annual Applications per Million People