Technological change in the Norwegian whaling industry: A case-study in the use of patent-statistics as a technology indicator

This paper presents an example of the use of patent statistics as a technology indicator in one industry. The first part deals with the problem of interpretation. Through examination of several other partial technology indicators, it is concluded that at least in this industry, patent statistics provide a reliable indicator, not only for the timing of inventions, but for the timing of innovations and diffusion as well. The reason is that the intervals between the stages in the innovation process are very short. This contradicts evidence from many other industries, and it is therefore emphasized that generalizations are unwarranted. The second part of this paper deals with the possible causes of technological change in Norwegian whaling. The methodology is inspired by J. Schmookler's work. Thus, the patents are correlated with other indicators of economic development in the industry. But while Schmookler's view is that the patent activity is determined by social demand and economic growth, the conclusions for the Norwegian whaling industry point in the opposite direction: the technological transformation that took place during the 1920s and early 1930s was forced upon the firms in their efforts to cut costs, which was achieved by rationalizing production and catching methods in line with a downward price trend for whale oil.