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Knowledge Complexity and the Evolution of the Automotive Industry in Europe

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Technological complexity measures the extent of the technological diversification in the main fields of the standard scientific classification of the flows and stock of patents, held by each company, that is necessary to generate new technological knowledge. The paper investigates the relations between the technological complexity of the flow of patents delivered to the main European automobile companies and the evolution of their performances in terms of markets share. Technological complexity confirms to be animportant characteristic of private knowledge: i t exerts strong and positive effects on the competitive advantage of firms. Appropriate measures of technological complexity make it possible to qualify the quantitative measures of the technological competence of firms based upon patents counts.

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  • Antonelli, Cristiano & Calderini, Mario, 2004. "Knowledge Complexity and the Evolution of the Automotive Industry in Europe," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200406, University of Turin.
  • Handle: RePEc:uto:labeco:200406
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    1. repec:fth:harver:1473 is not listed on IDEAS
    2. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters,in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
    3. Zvi Griliches, 1998. "Patent Statistics as Economic Indicators: A Survey," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 287-343 National Bureau of Economic Research, Inc.
    4. Wang, Q. & von Tunzelmann, N., 2000. "Complexity and the functions of the firm: breadth and depth," Research Policy, Elsevier, vol. 29(7-8), pages 805-818, August.
    5. Arrow, Kenneth J, 1969. "Classificatory Notes on the Production and Transmission of Technological Knowledge," American Economic Review, American Economic Association, vol. 59(2), pages 29-35, May.
    6. Brouwer, Erik & Kleinknecht, Alfred, 1996. "Firm Size, Small Business Presence and Sales of Innovative Products: A Micro-econometric Analysis," Small Business Economics, Springer, vol. 8(3), pages 189-201, June.
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