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US Resident Patent Applications vs US R&D Expenditure

US Resident Patent Applications and US R&D Expenditure correlate at r = +0.63 over 26 years (1996–2021), p = 5.4e-4. With the time trend removed, r = -0.86. Direction flips without the trend.

Verdict: Direction flips without the trend. The raw correlation is 0.63, but once each series' time trend is removed it becomes -0.86. The year-to-year movements run the opposite way to the long-run trends, so the headline number is misleading.

Pearson r
+0.63
p-value
5.4e-4
Years compared (n)
26 (1996–2021)
95% confidence interval
0.32 to 0.82
Correlation with the time trend removed
-0.86

Sources

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Correlation does not imply causation. How the verdict is worked out.