Scandinavian Working Papers in Economics

Working Papers,
Blekinge Institute of Technology, Department of Industrial Economics

No 2013/01: The Role of Knowledge Variety and Intensity for Regional Innovative Capability

Sam Tavassoli () and Nunzia Carbonara ()
Additional contact information
Sam Tavassoli: CSIR, Blekinge Inst of Technology, Postal: CSIR, School of Management, Blekinge Inst of Technology, 371 79 Karlskrona, Sweden
Nunzia Carbonara: CSIR, Blekinge Inst of Technology, Postal: Department of Mechanical and Management Engineering , Politecnico di Bari , Viale Japigia 182 – 70126 Bari, Italy

Abstract: This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovative capability. When it comes to variety, related knowledge variety plays a superior role.

Keywords: Knowledge intensity; Knowledge variety; Related variety; Unrelated variety; Internal knowledge; External knowledge; Patent applications; Functional regions

JEL-codes: F14; O32; R12

29 pages, December 3, 2013

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