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Mapping firms’ locations in technological space: A topological analysis of patent statistics

Author

Listed:
  • Escolar, Emerson G.
  • Hiraoka, Yasuaki
  • Igami, Mitsuru
  • Ozcan, Yasin

Abstract

Where do firms innovate? Mapping their locations and directions in technological space is challenging due to its high dimensionality. We propose a new method to characterize firms’ inventive activities via topological data analysis (TDA) that represents high-dimensional data in a shape graph. Applying this method to 333 major firms’ patents in 1976–2005 reveals hitherto undocumented industry dynamics: some firms remain undifferentiated; others develop unique portfolios. Firms with unique trajectories, which we define and measure graph-theoretically as “flares” in the Mapper graph, tend to perform better. This association is statistically and economically significant, and continues to hold after we control for portfolio size, firm survivorship, and industry classification.

Suggested Citation

  • Escolar, Emerson G. & Hiraoka, Yasuaki & Igami, Mitsuru & Ozcan, Yasin, 2023. "Mapping firms’ locations in technological space: A topological analysis of patent statistics," Research Policy, Elsevier, vol. 52(8).
    • Handle: RePEc:eee:respol:v:52:y:2023:i:8:s0048733323001051
    DOI: 10.1016/j.respol.2023.104821
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    More about this item

    Keywords

    Innovation; Mapper; Patents; R&D; Topological data analysis;
    All these keywords.

    JEL classification:

    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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