Mapping the Territorial Adaptation of Technological Innovation Systems—Trajectories of the Internal Combustion Engine

Besides the rise of sustainable technologies, successful sustainability transitions crucially depend on the phase-out of unsustainable ones. However, the detailed dynamics of declining technological innovation systems (TIS) remain vague. Thus, based on the new TIS life cycle framework, we investigate how the technological dimension of a mature TIS adapts to increasing transformational pressures towards its decline. Considering the internal combustion engine (ICE) as a suitable research case, we measure the technological adaptation as changes in the dominant technological trajectory over time and across TIS territories. Empirically, this is operationalised by a main path analysis in patent citation networks, using 221,700 patents to cover the period from 10 January 1901 until 31 January 2019. Our results not only point to considerable shifts in the direction of technological development over time but also highlight stark differences across the three major car markets. Most notably, in contrast to USA and Japan, where hybrid powertrains have become the dominant alternative powertrains, the dominant trajectory in the EU territory points to an ongoing commitment towards diesel technology. In essence, our results highlight the importance of path dependency and connectivity of the knowledge search process as well as selective forces on the innovation system level, which have been neglected by related empirical studies. Conceptionally, our analysis demonstrates that the technological adaptation process is influenced by specific developments during a time period and heterogenous territorial dynamics within the TIS. Consequently, future TIS studies might consider spatially heterogeneous development cycles as well as possible mechanisms to establish an international trajectory towards sustainability goals.

Knowledge Diffusion and the Dynamics of Citation Accrual

<p>The diffusion of knowledge through society proceeds like an invisible ripple that moves between agents through multiple information channels. However, some types of knowledge are recorded, systematised and digitised for the benefit of everyone. Patents and academic articles are examples of such codified knowledge. These documents also contain a common element that is utilised for linking new and established knowledge: citations. This thesis harnesses citations in patents and scientific articles as proxies for signifying the existence of knowledge flows between cited and citing documents, focusing primarily on the dynamics of citation accumulation and the mechanisms governing these dynamics. For this purpose, it is helpful to think of patents and their citations as nodes and links, respectively, in a network where new nodes join the network and distribute their citations among existing nodes. This mode of thinking leads directly to the question: How does the citation network grow? This thesis addresses that question both empirically and theoretically. Two mechanisms that can explain much of the observed citation dynamics are preferential attachment and node ageing. The former mechanism reflects the tendency for successful nodes (by citation count) to become even more successful, while the latter captures the propensity for knowledge to become obsolete over time. The independence of these phenomena is nontrivial, but has generally been assumed. We put this assumption to the test for both patent and scientific-article citation networks and found it to be generally true if precautions are taken to account for important context surrounding the meaning of citations. Achieving a clear separation of these mechanisms is found to be very useful both mathematically and empirically, as they can now be studied independently. Patents are particularly sophisticated documents, with various components holding specific legal meanings. Associating certain properties of these components with popularity in the form of citation accrual creates a rare opportunity to build a framework that can identify ex-ante node fitnesses and examine their effect on the growth of a citation network. We find that a significant portion of the preferential-attachment process observed in the patent-citation network can be attributed to basic properties of patents determined by their time of grant. Besides suggesting novel approaches towards estimating patent quality, the results of our work also provide a platform for gaining a deeper understanding of the various mechanisms that underpin the success-breeds-success dynamics ubiquitously observed in complex systems.</p>

Knowledge Diffusion and the Dynamics of Citation Accrual

<p>The diffusion of knowledge through society proceeds like an invisible ripple that moves between agents through multiple information channels. However, some types of knowledge are recorded, systematised and digitised for the benefit of everyone. Patents and academic articles are examples of such codified knowledge. These documents also contain a common element that is utilised for linking new and established knowledge: citations. This thesis harnesses citations in patents and scientific articles as proxies for signifying the existence of knowledge flows between cited and citing documents, focusing primarily on the dynamics of citation accumulation and the mechanisms governing these dynamics. For this purpose, it is helpful to think of patents and their citations as nodes and links, respectively, in a network where new nodes join the network and distribute their citations among existing nodes. This mode of thinking leads directly to the question: How does the citation network grow? This thesis addresses that question both empirically and theoretically. Two mechanisms that can explain much of the observed citation dynamics are preferential attachment and node ageing. The former mechanism reflects the tendency for successful nodes (by citation count) to become even more successful, while the latter captures the propensity for knowledge to become obsolete over time. The independence of these phenomena is nontrivial, but has generally been assumed. We put this assumption to the test for both patent and scientific-article citation networks and found it to be generally true if precautions are taken to account for important context surrounding the meaning of citations. Achieving a clear separation of these mechanisms is found to be very useful both mathematically and empirically, as they can now be studied independently. Patents are particularly sophisticated documents, with various components holding specific legal meanings. Associating certain properties of these components with popularity in the form of citation accrual creates a rare opportunity to build a framework that can identify ex-ante node fitnesses and examine their effect on the growth of a citation network. We find that a significant portion of the preferential-attachment process observed in the patent-citation network can be attributed to basic properties of patents determined by their time of grant. Besides suggesting novel approaches towards estimating patent quality, the results of our work also provide a platform for gaining a deeper understanding of the various mechanisms that underpin the success-breeds-success dynamics ubiquitously observed in complex systems.</p>

Do Deep Regional Trade Agreements Enhance International Technology Spillovers? Depth, Breadth, and Heterogeneity

In Chap. 10.1007/978-981-16-5210-3_5, we examine the relationship between bilateral trade patterns and international technology spillovers. In Chap. 10.1007/978-981-16-5210-3_6, we analyze how horizontal and vertical foreign direct investment (FDI) of multinational enterprises (MNEs) affects technology spillovers between themselves and firms in host countries. Both chapters analyze the issues from theoretical and empirical points of view. Each chapter shows that international trade or FDI is an important channel of international technology spillovers, but the effect on them is heterogeneous, depending on the type of trade patterns or the structure of FDI. In both chapters we measure technology spillovers using patent citation data.

Corporate Innovation and the Auditor's Assessment of Going Concern

In this study, we examine whether external auditors assess corporate innovation activities when considering a financially distressed client's ability to continue as a going concern. Using patent count, patent market value, and patent citation to measure the firm-level innovation output, we document that higher quantity and quality of innovation activities are associated with a lower likelihood of going concern opinions. The association between innovation and going concern opinions is more pronounced for audit offices with high exposure to corporate innovation and clients operating in R&D-intensive industries. In additional analyses, we confirm that innovation is associated with future business value, as measured by future profitability and intellectual property licensing agreements. We conclude that corporate innovation represents a mitigating factor when auditors consider whether a going concern opinion is appropriate for a financially distressed client.

The Spatio-Temporal Evolution of China’s Hydrogen Fuel Cell Vehicle Innovation Network: Evidence From Patent Citation at Provincial Level

Hydrogen fuel cell vehicle industry is in a rapid development stage. Studying the domestic spatial distribution of hydrogen fuel cell vehicle industry across a country, especially the spatio-temporal evolution of the innovation level and position of each region in innovation network, will help to understand the industry’s development trends and characteristics, and avoid repeated construction. This article uses social network analysis and patent citation information of 2,971 hydrogen fuel cell vehicle related invention patents, owned by 218 micro-innovators across 25 provinces of China from 2001 to 2020, to construct China’s hydrogen fuel cell vehicle innovation network. Based on the dimensions of knowledge production, knowledge consumption, and network broker, the network positions of sample provinces in three periods divided by four main national policies are classified. The main findings are as follows. 1) In China, the total sales of hydrogen fuel cell vehicle and the development of supporting infrastructure are balanced, and a series of national and local industrial development polices have been issued. 2) China’s hydrogen fuel cell vehicle innovation network density, the proportion of universities and research institutes among the innovators, and the active degree of the eastern provinces are all becoming higher. 3) The provinces in optimal network position are all from the eastern region. Shanghai and Liaoning are gradually replaced by Beijing and Jiangsu. 4) Sichuan in the western region is the only network broker based on knowledge consumption. 5) Although Zhejiang, Tianjin, Hebei, Guangdong, and Hubei are not yet in the optimal position, they are outstanding knowledge producers. Specifically, Guangdong is likely to climb to the optimal network position in the next period. The conclusions will help China’s provinces to formulate relevant development policies to optimize industry layout and enhance collaborative innovation in the hydrogen fuel cell vehicle industry.