Catalan numbers are a sequence of natural numbers that have many applications in combinatorial mathematics, defined by the formula $$C_n = \frac{1}{n+1} \binom{2n}{n}$$ for non-negative integers n. They count various combinatorial structures such as the number of valid parentheses combinations, paths in a grid, and binary search trees. Catalan numbers are deeply connected to mathematical induction as they can be proven and derived through induction techniques.