The role of knowledge variety and intensity for regional innovation

Abstract

This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions' innovative capability. When it comes to variety, related knowledge variety plays a superior role.

Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of US State-Level Patenting

“…In their analysis of the impact of related variety, however, they did not provide direct evidence on the relationship between related variety and innovation processes as such. Hence, the question remains open whether related variety supports innovation (TAVASSOLI and CARBONARA, 2014). 1 The present paper aims to develop further the notion of related variety and its effect on innovation.…”

Related variety and economic development: a literature review

“…What can be done in future studies is to analyse directly the impact of related variety on entrepreneurship, knowledge and innovation, which in turn are expected to lead to employment and exports. Quite some studies already analysed the effects of related and unrelated variety on patents as the dependent variable (Castaldi, Frenken, & Los, 2015;Kogler, Rigby, & Tucker, 2013;Rigby, 2015;Tanner, 2016;Tavassoli & Carbonara, 2014), but fewer of such studies exist looking at scientific publications Heimeriks & Balland, 2015) or new firm formation (Colombelli, 2016;Guo, He, & Li, 2016) as dependent variables. (8) Finally, related-variety studies hitherto focus on how related variety affects economic development, while research on the geography of knowledge recombination processes at the micro-level remains rather unconnected to the related-variety literature.…”

Reflection of Industrial Structure in Innovative Capability

“…A. Schumpeter, innovations induce dynamic disequilibrium ("waves of creative destruction") as the basis for economic growth and social development, they are generally considered to be a source of competitiveness (Valenta, 2001;Dutta & Caulkin, 2007;Sabotiene, 2010;Huggins et al, 2014;Peretto, 2015;Steinmetz, 2015). Many studies argue this causation to be relevant largely for competitiveness of national as well as regional economics (Malmberg & Maskell, 2002;Grant, 1996;Tavassoli & Carbonara, 2014). J.…”