Knowledge search and regional technological diversification

This paper explores the role of knowledge search within processes of regional technological diversification. We consider two distinct dimensions of search: regional search breadth reflects the spectrum of knowledge domains combined in the development of new technologies; and regional search depth describes how intensively regions draw upon previously cumulated knowledge. Using a panel dataset of NUTS-2 regions across Europe for the period 1990–2014, we find that both regional search breadth and regional search depth, alongside relatedness in localised capabilities, exert a positive effect on regional diversification into new technology fields. However, both dimensions are found to be characterised by non-linear returns.