The Importance of Localized Related Variety for International Diversification of Corporate Technology.

Dettmann, Eva; Dominguez Lacasa, Iciar; Günther, Jutta; Jindra, Björn

Dettmann E.,Dominguez Lacasa I.,Günther J.andJindra B. The importance of localized related variety for international diversification of corporate technology,Regional Studies. Internationalization of research and development has increased substantially in recent years. This paper analyses the determinants of spatial distribution of foreign technological activities across 96 regions in Germany. It identifies foreign technological activities by applying the cross-border ownership concept to patent applications. The main proposition is that regions with higher related variety of technological activities between sectors attract more foreign technological activities. The estimations show that this is the case in regions characterized by a high overall technological strength. This suggests that related variety facilitates technological diversifications of foreign corporations in regions at the top of the geographic hierarchy.

DIVERSIFICATION in industry; GLOBALIZATION; RESEARCH & development; TECHNOLOGICAL innovations; ESTIMATION theory

Regional Studies, 2016, Vol 50, Issue 10, p1648

0034-3404

Academic Journal

10.1080/00343404.2015.1049994