In traditional innovation practices, concept and IP generation are often iteratively integrated. Both processes demand an intricate understanding of advanced technical domain knowledge. Existing large language models (LLMs), while possessing massive pre-trained knowledge, often fall short in the innovative concept generation due to a lack of specialized knowledge necessary for the generation. To bridge this critical gap, we propose a novel knowledge finetuning (KFT) framework to endow LLM-based AI with the ability to autonomously mine, understand, and apply domain-specific knowledge and concepts for invention generation, i.e., concept and patent generation together. Our proposed PatentGPT integrates knowledge injection pre-training (KPT), domain-specific supervised finetuning (SFT), and reinforcement learning from human feedback (RLHF). Extensive evaluation shows that PatentGPT significantly outperforms the state-of-the-art models on patent-related benchmark tests. Our method not only provides new insights into data-driven innovation but also paves a new path to fine-tune LLMs for applications in the context of technology. We also discuss the managerial and policy implications of AI-generating inventions in the future.