BUSC Data CompetitionKevin Choi

Introduction● Linear Model of Innovation: Development

● Innovation Recommendation: Utility patents

Development● Historical consistency

● Technological relevance

Development: Unique

SR → AR → development → P→ D

Brozen (1951b)Research, engineering development, production, service

Development: Utility Patents● “The use of the results of fundamental and applied

research directed to the introduction of useful materials, devices, products, systems, and processes or the improvement of existing ones.”

-OECD

Data Analysis

● Bloomberg Innovation Ranking System

ncvTest(model)Non-constant Variance Score TestVariance formula: ~ fitted.valuesChisquare = 4.806927Df = 1 p = 0.02834556

ncvTest(model.transformed)Non-constant Variance Score TestVariance formula: ~ fitted.valuesChisquare = 0.2544199Df = 1 p = 0.61398

Data Analysis● Variables:

1. stem2. scienceprof3. utilitypatents4. govrd5. gsp6. pubtechcomp

2011 2012 2013 2014

Computer and electronic products 97.5 82.6 80.51851852 84.40740741

Chemical products 113.9230769 153.5806452 130.6666667 136.7692308

Publishing industries (includes software) 100.6363636 82.14285714 106.8181818 99.5

Motion pictures and sound recording industries

318.5714286 565.25 469.4 486

Conclusion1. Intensely evaluate government spending on research and development2. Be conservative with government R&D spending3. Consider evaluating the following industries: computer and electronics,

chemical products, publishing industries, and motion pictures4. Invest in institutionalized innovation (education or programs) that can help

improve utility patent acceptance rate