Measuring Technological Innovation Over the Long Run

@article{Kelly2018MeasuringTI,
  title={Measuring Technological Innovation Over the Long Run},
  author={Bryan T. Kelly and Dimitris Papanikolaou and Amit Seru and Matt Taddy},
  journal={Ewing Marion Kauffman Foundation Research Paper Series},
  year={2018}
}
We use textual analysis of high-dimensional data from patent documents to create new indicators of technological innovation. We identify significant patents based on textual similarity of a given patent to previous and subsequent work: these patents are distinct from previous work but are related to subsequent innovations. Our measure of patent significance is predictive of future citations and correlates strongly with measures of market value. We identify breakthrough innovations as the most… 

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