Improving Canada's innovative capacity through international patenting

Innovation, as a key contributor to economic growth, is a priority for governments around the world. Accurate indicators of innovation are essential to developing effective policies and reliable benchmarks. One such indicator is priority triadic patent families, which is a refined measure of international patenting developed by the OECD. The focus of this study is Canada's inability to iincrease its international patenting rate relative to other economies and the ways in which Canada may improve its position. Literature suggests that key factors leading to increased patenting are R&D expenditures, a skilled workforce, openness to trade, and outward foreign direct investment. Quantitative analysis of' countries holding foreign patents reveals population, high-income status, outward foreign direct investment and R&D expenditures correlate significantly with international patenting. Accordingly, this study recommends Canada-specific policy options to increase outward foreign direct investment and improve the efficiency of R&D expenditures.