Inter-sectoral and inter-regional knowledge spillovers: The role of ICT and technological branching on innovation in high-tech sectors

Abstract

The aim of this paper is to examine the patenting specialization of OECD regions in high-tech (HT) domains, with a particular emphasis on the impact of information and communication technology (ICT) on innovation performance at both the extensive and intensive levels. Considering ICT as a general-purpose technology (GPT) and recognizing its influence as a knowledge driver on regional innovation, we investigate the role of ICT agglomeration in promoting HT innovation, specifically examining whether this effect is driven by regions that exhibit innovation in ICT. Additionally, we explore the inter-sectoral and inter-regional branching dynamics in HT innovation development by examining the relative proximity between HT technologies. To ensure the robustness of our findings regarding the effects of ICT agglomeration (technologically advanced) and technological proximity, we employ fixed-effects models, quantile regression, and generalized method of moments (GMM) estimators. Furthermore, we employ a Spatial Durbin Model to examine inter-regional spillover effects. Our findings indicate that the propensity for innovation at the extensive level is influenced by ICT agglomeration, but this positive impact is contingent upon regions maintaining technological specialization in ICT. Moreover, we observe inter-sectoral innovation spillovers resulting from technological proximity between technologies, as well as inter-regional spillovers stemming from spatial proximity.