Measuring capacity for innovation. For inventions to become valuable they must be transformed eventually into innovations, or else they remain merely novel ideas of no economic consequence. Innovation is thus the development of an invention that is actually used or produced as an economic good within the economy. Numerous difficulties limit evaluating a country’s ability to innovate, but at least two measures relating to the actual level of innovation suggest themselves: compiling data relating to the number of product or process patents adopted for manufacture and the percentage of prototypes actually line produced either across the economy as a whole or within the critical technology areas identified earlier. Either or both of these measures would help to indicate the level of innovation witnessed within a given country and thereby contribute to a qualitative assessment of the entrepreneurial capacity of the country as a whole