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Understanding Regional Branching: Knowledge Diversification via Inventor and Firm Collaboration Networks

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  • Dieter F. Kogler
  • Adam Whittle
  • Keungoui Kim
  • Balázs Lengyel

Abstract

The diversification of regions into new technologies is driven by the degree of relatedness to existing capabilities already present in the region. In cases where opportunities for diversification are rather limited, external knowledge that spills over from neighboring regions or from farther away might become an important driver of regional diversification. Despite the relative importance of interregional knowledge flows via collaborative work, we still have a very limited understanding of how collaboration networks across regions might facilitate diversification processes. The present study investigates the diversification patterns of European metropolitan and nonmetropolitan regions into new knowledge domains via technology classes reported in patent applications to the European Patent Office. The findings indicate that externally oriented inventor collaboration networks increase the likelihood that a new technology specialization enters a region, but this external orientation is less important for related diversification than for unrelated diversification. Further, the results demonstrate that interregional collaboration networks help diversification into unrelated technologies if external knowledge sourcing is based on a diverse set of regions and if collaboration is intense within companies located in distinct regions. Within-firm collaborations across regions can compensate for missing related skills in metropolitan and in nonmetropolitan regions alike but are especially important in nonmetropolitan regions. These results provide new evidence about the importance of knowledge flows within multilocation firms in the technological knowledge diversification of regions.

Suggested Citation

  • Dieter F. Kogler & Adam Whittle & Keungoui Kim & Balázs Lengyel, 2023. "Understanding Regional Branching: Knowledge Diversification via Inventor and Firm Collaboration Networks," Economic Geography, Taylor & Francis Journals, vol. 99(5), pages 471-498, October.
  • Handle: RePEc:taf:recgxx:v:99:y:2023:i:5:p:471-498
    DOI: 10.1080/00130095.2023.2242551
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    Cited by:

    1. Abbasiharofteh, Milad & Kogler, Dieter F. & Lengyel, Balázs, 2023. "Atypical combinations of technologies in regional co-inventor networks," Research Policy, Elsevier, vol. 52(10).
    2. Adelia Fatikhova & Fabrizio Fusillo & Sandro Montresor, 2024. "Green-tech transition beyond regional borders: the role of embodied green knowledge flows," Papers in Evolutionary Economic Geography (PEEG) 2413, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2024.
    3. Ron Boschma, 2024. "An evolutionary approach to regional studies on global value chains," Regional Studies, Taylor & Francis Journals, vol. 58(7), pages 1492-1500, July.
    4. Sebestyén, Tamás & Braun, Erik & Bilicz, Dávid & Iloskics, Zita, 2024. "Egyetemek és vállalatok kutatási együttműködése a helyi tudástermelésben [Research cooperation between universities and companies in local knowledge production]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1199-1221.

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