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The importance of localized related variety for international diversification of corporate technology

: Dettmann, E.; Dominguez Lacasa, Iciar; Günther, J.; Jindra, B.


Regional studies. Journal of the Regional Studies Association 50 (2016), No.10, pp.1648-1662
ISSN: 0034-3404
ISSN: 1360-0591
Journal Article
Fraunhofer IMW ()

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.