Exploring the linkage of inward technology acquisition and regional innovative capacity

Authors: ILWON SEO*, University College London
Topics: Economic Geography, China
Keywords: technology diffusion, catching-up, patent transfer, knowledge network
Session Type: Paper
Day: 4/10/2018
Start / End Time: 10:00 AM / 11:40 AM
Room: Astor Ballroom I, Astor, 2nd Floor
Presentation File: No File Uploaded

This paper aims to examine to what extent the domestic local technology could substitute inward international technology for shaping the regional innovative capacity in the catching-up economy. Over the last three decades, the topic of complementarity in technology acquisition has received growing attention linked with the interest in innovative capacity and regional growth. The empirical evidence widely supports that exogenous technology remains only static technology which is highly unlikely to be transformed into the own absorptive capacity, without indigenous innovative activities. While the majority of studies have focused on the process of innovation within the boundaries of firms based on the questionnaire data, relatively little attention has paid to the influence of the local milieu where the exogenous knowledge is assimilated into.
The present study adds to the existing literature by highlighting the importance of regional factors to reveal the inter/intra city diffusion of technology and innovative capacity as well. Based on the technology flow data combining patent application and licensing DB from China, the regression result shows the importance of local factors to explain the regional externalities in innovative activities and outcomes. The contribution of this work will broaden the understanding of the relationship between international/local technology diffusion and the regional innovative capacity.

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