Trademarks as an indicator of regional innovation: evidence from Japanese prefectures

Abstract

Regional science has long been concerned with measuring the spatial distribution of innovation activity. We introduce trademarks as a new indicator for regional innovation and argue that they are particularly useful to measure the ‘soft’ side of innovation that is difficult to capture with conventional indicators. We explore the spatial distribution of trademarks using a detailed and comprehensive dataset of 47 Japanese prefectures from 1999 to 2012. In addition to mapping differences in trademarking across regions, we identify correlates at the regional level that provide insights into determinants of regional innovation measured via trademarks. For example, regional trademark activity positively correlates with population density, income per capita, entrepreneurship rate, the number of universities, and strong private service and finance sectors. Overall, the results reveal associations unique to trademarks that other measures of innovation cannot uncover. Our findings contribute to research in regional science and the evolving literature on trademarks.