Regional technological diversification and the global network of embodied R&D: evidence from the exposure of European regions

Fabrizio Fusillo, Sandro Montresor, Chiara Burlina and Alessandro Palma

Regional Studies, 2024, vol. 58, issue 7, 1410-1424

Abstract: We investigate whether regions’ participation to the global network of embodied R&D (GNRD) facilitates their technological diversification. Filling a gap about the role of global research and development (R&D) networks, we maintain that by patenting in pivotal GNRD industries, regions become more exposed to global knowledge and increase their capacity to diversify also in technologies less cognitively related to pre-existing ones. Using novel GNRD data, we test this using a panel (2004–19) of NUTS-2 regions for the EU-13. GNRD regional exposure positively correlates with technological diversification, mainly at the intensive margin. A higher exposure makes technological diversification less related to existing technologies, though the relationship is non-linear.

Date: 2024
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DOI: 10.1080/00343404.2023.2269205

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