Deciphering innovation: An exploration of USPTO patents granted to Iranian inventors

•Uses the Iranian patent stock in the USPTO to analyze the innovative output.•Results tentatively indicate that policy initiatives have spurred patenting.•Foreign-assigned patents, followed by Iranian-assigned patents are of higher quality and potential value.•Nearly half of the patents are unassigned.

Since nearly a decade ago, Iranian policy circles have declared innovation and development of science-based industries as a priority area. This paper utilizes the emerging Iranian patent stock in the USPTO to ascertain progress on this front. Results indicate that there are policy traces in the emerging patent portfolio as proxied by sponsorship statements in 28% of all patents. However, there is little evidence of technological specialization. Breaking down the portfolio into foreign-assigned, Iranian-assigned, unassigned and Iranian-sponsored patents, indicates that foreign-assigned, followed by Iranian-assigned patents are of higher quality and potential value. Nearly half of the patents are unassigned and 40% are assigned to foreign entities. Lack of ownership assignment can be a hurdle to effective exploitation, defense and maintenance of patents. The analysis is concluded by relevant policy lessons.