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The Importance of Localized Related Variety for International Diversification of Corporate Technology

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  • Eva Dettmann
  • Iciar Dominguez Lacasa
  • Jutta Günther
  • Björn Jindra

Abstract

Dettmann E., Dominguez Lacasa I., Günther J. and Jindra B. The importance of localized related variety for international diversification of corporate technology, Regional Studies. Internationalization of research and development has increased substantially in recent years. This paper analyses the determinants of spatial distribution of foreign technological activities across 96 regions in Germany. It identifies foreign technological activities by applying the cross-border ownership concept to patent applications. The main proposition is that regions with higher related variety of technological activities between sectors attract more foreign technological activities. The estimations show that this is the case in regions characterized by a high overall technological strength. This suggests that related variety facilitates technological diversifications of foreign corporations in regions at the top of the geographic hierarchy.

Suggested Citation

  • Eva Dettmann & Iciar Dominguez Lacasa & Jutta Günther & Björn Jindra, 2016. "The Importance of Localized Related Variety for International Diversification of Corporate Technology," Regional Studies, Taylor & Francis Journals, vol. 50(10), pages 1648-1662, October.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:10:p:1648-1662
    DOI: 10.1080/00343404.2015.1049994
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    Cited by:

    1. Zabala-Iturriagagoitia, Jon Mikel & Porto Gómez, Igone & Aguirre Larracoechea, Urko, 2020. "Technological diversification: a matter of related or unrelated varieties?," Technological Forecasting and Social Change, Elsevier, vol. 155(C).

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