This paper analyses if the generation of new knowledge benefits from the combination of similar or dissimilar pieces of existing technologies, in terms of their technological content (related versus unrelated variety), for the case of European regions. Specifically, it analyses the relevance of variety in the case of local knowledge as well as in the case of the knowledge coming from other regions. At the local level, it shows that, while related variety is conducive to regional innovation, unrelated variety does play a role too when it comes to radical innovations. Conversely, it also shows that external knowledge flows have a higher impact, the higher the similarity between these flows and the extant local knowledge base.
We assess the role of ethnic ties in the diffusion of technical knowledge using a database of patents filed by US-resident inventors of foreign origin, identified by name analysis. We consider 10 leading source countries, both Asian and European, of highly skilled migration to the USA and test whether foreign inventors' patents are disproportionately cited by (i) co-ethnic migrants ('diaspora' effect), and (ii) inventors residing in their country of origin ('brain gain' effect). We find evidence of the diaspora effect for the Asian but not the European countries, with the exception of Russia. A diaspora effect does not necessarily translate into a brain gain effect, most notably for India where no such effect is detected. Neither does a brain gain effect occur solely in conjunction with a diaspora effect. Overall, diaspora and brain gain effects carry less weight than other channels of knowledge transmission, most notably co-invention networks and multinational companies.Acknowledgements: Unique identifiers for inventors in the EP-INV database come from the APE-INV project (Academic Patenting in Europe), funded by the European Science Foundation. The pilot project for assigning inventors to specific countries of origin was funded by the World Intellectual Property Organization (WIPO), which also made available to us the WIPO-PCT dataset. We received useful suggestions by participants to the following conferences : MEIDE
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