Examination of related diversification in laggard regions

Abstract

In regions of meagre technology and market activities, traditional innovation metrics (patents and trademarks filed at international offices) may provide limited insight of the mechanisms of regional diversification and therefore policies, including smart specialization. We argue that in such regions, innovation activity, of lower value, can become the seed needed to grow to innovation of international calibre. We provide support by examining both domestic and international patent and trademark activity for Greece's NUTS 3 regions during 2000–2016. We further implement the principle of relatedness and show that regions with related technology (market) capabilities are more likely to exhibit new technology (market) specializations.