Using structural diversity to measure the complexity of technologies

Tom Broekel ()

No 1918, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The paper introduces structural diversity as a new approach to quantify the complexity of technologies. By modeling technologies as combinatorial networks, a measure of technological complexity is derived that represents the diversity of (sub-)network topologies in these networks. It is further argued that this measure can be empirically approximated with the Network Diversity Score (NDS). The paper also presents an application of this approach to European patent data from 1980 to 2015. On this basis, the measure of structural diversity is shown to replicate a number of stylized facts commonly associated with technological complexity: Complexity increases over time and younger technologies are more complex than older technologies. Complex technologies are also associated to larger R&D efforts and require more collaborative R&D activities. Lastly, when controlling for technologies? size, technologies scoring high on structural diversity are also shown to concentrate in space.

Keywords: Complexity; technology; patents; technological complexity; network; diversity (search for similar items in EconPapers)
JEL-codes: N70 O11 O31 (search for similar items in EconPapers)
Date: 2019-05, Revised 2019-05
New Economics Papers: this item is included in nep-hme, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Journal Article: Using structural diversity to measure the complexity of technologies (2019)
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