Innovation and Knowledge Creation in Greece: An Analysis Based on Patent Data

Abstract

The debate on the factors which contribute to economic development is always timely. In our contemporary economic environment, innovation and knowledge creation play a very important role. Both are primary sources of economic growth and industrial change. Both, also, could face the future economic challenges and guarantee a better life to all of us. In this paper we use patent data to describe and measure innovation and knowledge creation in Greece. Generally, the description and measurement of innovation and knowledge creation is a difficult and rather complex task. Empirical research in this field uses R&D based indicators and patent data in most cases. Patents are the main and formal productresult of R&D activities inside firms. Firms develop patents in order to make profits, and these patents are also indicative of the forthcoming new products and procedures that will be introduced in the market. Our analysis shows that most patents are protected by Greek individuals and foreignowned firms. On the contrary, the participation of Greek firms in patenting is very low. At the same time, the Greek-domestic patent activity is widely dispersed among the eight broad technology sectors, while the respective foreign activity rather follows the international pattern, with its technologies focusing on medical or veterinary science and hygiene. In general, innovation and knowledge creation in Greece are characterized by a traditional technology orientation as a result of the existing industrial structure, where a large part of patents is related to the construction industry and the agricultural sector.