Abstract
This paper starts out by reviewing the literature that in different ways utilizes patent data as a source of information in measuring technological change. The main focus, however, is an assessment of patent statistics used as a technology indicator. This is done by investigating the relationship between patenting and the innovation process. The analysis reveals many, and well-known, problems. The second part of the paper therefore reviews the research directed at improving the quality of the patent statistics as a technology indicator. This has been done in a number of ways depending on the focus of the analysis. In general we may conclude that it seems necessary to utilize the data at the lowest possible level of aggregation to overcome the problems of validity.
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