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The Role of Relatedness and Unrelatedness for the Geography of Technological Breakthroughs in Europe

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  • Ron Boschma
  • Ernest Miguelez
  • Rosina Moreno
  • Diego B. Ocampo-Corrales

Abstract

This article proposes a framework to study how the existing knowledge portfolio of regional economies affects the emergence and occurrence of breakthrough technologies. The study discusses the relevance of cognitive distance between the technology of a breakthrough invention and the existing technological base in their geographic vicinity. Theoretically, it introduces the idea that both relatedness and unrelatedness between the technologies in breakthrough inventions and the regional portfolio of technologies can positively influence the appearance of these breakthroughs, but especially relatedness. Empirically, it investigates a sample of 277 NUTS2 regions in Europe in the period 1981 to 2010 and reveals that, by far, most combinations breakthrough inventions make are between related technologies: almost no breakthrough patent combines unrelated technologies only. Regressions show that the occurrence of breakthrough patents in a technology in a region is positively affected by the local stock of technologies that are related to such technology, but such an effect for the local stock of unrelated technologies is not found. However, the region’s ability to enter new breakthrough inventions in a technology relies on the combination of knowledge that is both related and unrelated to such technology.

Suggested Citation

  • Ron Boschma & Ernest Miguelez & Rosina Moreno & Diego B. Ocampo-Corrales, 2023. "The Role of Relatedness and Unrelatedness for the Geography of Technological Breakthroughs in Europe," Economic Geography, Taylor & Francis Journals, vol. 99(2), pages 117-139, March.
    • Handle: RePEc:taf:recgxx:v:99:y:2023:i:2:p:117-139
    DOI: 10.1080/00130095.2022.2134005
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    1. Mendieta-Aragón, Adrián & Rodríguez-Fernández, Laura & Navío-Marco, Julio, 2023. "Tourism usage of digital collaborative economy platforms in Europe: situation, behaviours and implication for the digital policies," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 278002, International Telecommunications Society (ITS).
    2. Xu, Mo & Tao, Changqi, 2024. "How to reach new technological specialisation: The role of related technological capabilities and complementary technological linkages," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Nils Grashof & Holger Graf, 2023. "Universities that matter for regional knowledge base renewal - the role of multilevel embeddedness," Jena Economics Research Papers 2023-009, Friedrich-Schiller-University Jena.
    4. Burhan Can Karahasan, 2023. "Spatial distribution of new firms and firm‐level innovation: Evidence from Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2156-2181, December.
    5. Barbero, Javier & Diukanova, Olga & Gianelle, Carlo & Salotti, Simone & Santoalha, Artur, 2024. "Technologically related diversification: One size does not fit all European regions," Research Policy, Elsevier, vol. 53(3).
    6. Yibo Qiao & Andrea Ascani & Andrea Morrison, 2024. "External linkages and regional diversification in China: The role of foreign multinational enterprises," Environment and Planning A, , vol. 56(4), pages 1077-1101, June.
    7. Jiaqi Wei & Ying Guo, 2024. "The effect of urban capacity in knowledge recombination on digital economy development," Scientometrics, Springer;Akadémiai Kiadó, vol. 129(9), pages 5373-5402, September.
    8. Suelene Mascarini & Renato Garcia & Emerson Gomes dos Santos & Ariana Ribeiro Costa & Veneziano Araujo, 2023. "Regional heterogeneity and the effects of the related and unrelated varieties on innovation," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2026-2045, December.
    9. Kroll, Henning & Ferrante, Chiara, 2024. "Redefining criticality in a changing world: Combining domestic and global perspectives on enabling technologies," Discussion Papers "Innovation Systems and Policy Analysis" 86, Fraunhofer Institute for Systems and Innovation Research (ISI).
    10. Abbasiharofteh, Milad & Kriesch, Lukas, 2024. "Not all twins are identical: the digital layer of “twin” transition market applications," Papers in Innovation Studies 2024/16, Lund University, CIRCLE - Centre for Innovation Research.
    11. Milad Abbasiharofteh & Jan Kinne & Miriam Krüger, 2024. "Leveraging the digital layer: the strength of weak and strong ties in bridging geographic and cognitive distances," Journal of Economic Geography, Oxford University Press, vol. 24(2), pages 241-262.
    12. Theresa Bürscher & Thomas Scherngell, 2024. "Potentials for Reducing Spatial Inequalities in Innovation: A Spatial Econometric Perspective," Growth and Change, Wiley Blackwell, vol. 55(4), December.
    13. J. Giorgi & A. Plunket & F. Starosta De Waldemar, 2024. "Inter-regional highly skilled worker mobility and technological novelty," Documents de Travail de l'Insee - INSEE Working Papers 2024-05, Institut National de la Statistique et des Etudes Economiques.
    14. Burhan Can Karahasan, 2024. "Do New Firms Boost Local Innovation? Evidence From Turkey," International Regional Science Review, , vol. 47(4), pages 509-560, July.
    15. Milad Abbasiharofteh & Tom Broekel & Lars Mewes, 2024. "The role of geographic distance and technological complexity in U.S. interregional co-patenting over almost two centuries," Environment and Planning A, , vol. 56(7), pages 2003-2022, October.

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