The Austin region has earned its reputation as a city of creativity, innovation and invention. Patents are one of the best measurements of innovation and Austin has always been extremely competitive in the number of patents issued yearly. The University of Texas is third in the nation in the number of patents earned.

According to a U.S. Patent and Trademark Office geographic analysis patent activity in the 1990s, Austin outpaces much larger and more economically diverse regions such as Phoenix, Seattle, Denver and Raleigh-Durham. This demonstrated capacity for generating new ideas has only increased in the new century. In 2006, The Wall Street Journal named Austin the No. 3 Most Inventive City due to patent activity.