In the article linked below, the author discusses three metrics to measure innovation. The three metrics are based on models of publicly available patent information. I don't give any weight to the first two proprietary metrics discussed but the third is straightforward and an interesting clue: the three year CAGR in the number of patent applications. Guess who has a 42% CAGR compared to a reported average of 12%? FARO!

Even if that is due to a very low number of applications as the starting point, it still is a good sign. Before any goes overboard, however, please keep in mind that these are applications and not yet issued patents. But it still is a good sign!

http://seekingalpha.com/article/1111991-3-companies-more-inn...

Ed