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Technological novelty and key enabling technologies: Evidence from European regions

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  • Sandro Montresor

    (Gran Sasso Science Institute)

  • Gianluca Orsatti

    (Università di Torino)

  • Francesco Quatraro

    (Università di Torino)

Abstract

This paper investigates whether the local endowment of Key Enabling Technologies (KETs) drives the regions’ capacity to create technological novelty. Looking at regional innovations as re-combinations of preexisting knowledge, we propose two indicators of regional technological novelty (absolute and local), based on patents that originally draw on still unexplored prior-art knowledge connections. We argue that KETs have inherent re-combinatorial properties of the regional knowledge base and that their local endowment drives technological novelty. We test for this argument by focusing on a sample of 1,255 NUTS3 EU regions over the period 2000-2014 in an original instrumental variable setting. With some nuances, results confirm our main hypotheses. KETs do drive significantly the introduction of local technological novelty, but this mainly occurs for an absolute kind of novelty. The development, use or eventually external acquisition of KETs is thus an important policy priority for regions willing to compete at the technological frontier.

Suggested Citation

  • Sandro Montresor & Gianluca Orsatti & Francesco Quatraro, 2020. "Technological novelty and key enabling technologies: Evidence from European regions," Discussion Paper series in Regional Science & Economic Geography 2020-05, Gran Sasso Science Institute, Social Sciences, revised Sep 2020.
    • Handle: RePEc:ahy:wpaper:wp5
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    More about this item

    Keywords

    technological novelty; knowledge combination; key enabling technologies (KETs);
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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