“…Technological innovations are often protected by patents which allow innovators to take advantage of their intellectual property rights and compensate for expenditure on research and development (Scotchmer, 2005;OECD, 2009). Patents are used to measure innovative activity, however, they have some merits and drawbacks as the heterogeneous, non-linear and complex nature of technological change is difficult to capture by one indicator (Archibugi & Pianta, 1996;Popp, 2005; de Rassenfosse, Dernis, Guellec, Picci, & van Pottelsberghe de la Potterie, 2013; Abbas, Zhang, & Khan, 2014;Kowalski & Michorowska, 2014;Ferraro, Dutt, & Kerikmäe, 2017). Nevertheless patent statistics have been widely used for assessing the competitive position in various technology fields both at firm and country levels (for an overview of merits and drawbacks of patents and patent-based indicators and databases see: Archibugi & Pianta, 1996;Dernis, Guellec, & van Pottelsberghe, 2002;Archambault, 2002;Kim & Lee, 2015;Dziallas & Blindt, 2019).…”