“The role of regional recombination capacity in shaping the technological space”

This paper investigates the role of regions’ recombinatorial technological capacity in shaping the technological space. To do so, we identify novel combinations of technologies and track their evolution by tracing all subsequent inventions that incorporate the same combination. Building on the concepts of relatedness and geographical proximity, we focus on the relevance of the technological antecedents of a pair of technologies combined for the first time in determining their success. This is due through the estimation of the likelihood of a new technological combination eventually becoming embedded within the broader knowledge space. Using patent data from 1976 to 2022 in the case of the European regions, we find strong evidence that a higher degree of relatedness between the technological antecedents of the two combined technologies significantly increases the likelihood that the combination will be reused in future inventions. Additionally, we find that the success of a new combination also benefits from the presence of dissimilar knowledge—not directly involved in the combination’s antecedents but accessible within the surrounding technological environment. In these cases, the greater the relatedness between the new invention’s antecedents and the broader regional knowledge base, the more likely it is to generate a high number of follow-on inventions and contribute meaningfully to the formation of the technological space