Methodological note. EIS: PCT patent applications per billion GDP (in PPP euros)

The capacity of firms to develop new products will determine their competitive advantage. One indicator of the rate of new product innovation is the number of patents. This indicator measures the number of PCT patent applications.

The indicator is obtained as a quotient.

Numerator:

Number of patents applications filed under the PCT, at international phase, designating the European Patent Office (EPO). Patent counts are based on the priority date, the inhventor´s country of residence and fractional counts.

Denominator:

Gross Domestic Product in Purchasing Power Parity euros.