Knowledge acquisition and innovation quality: The moderating role of geographical characteristics of technology

Abstract

Acquiring and absorbing knowledge at different geographic levels is an important step in the technological learning and innovation processes for firms. Geographically bounded knowledge searching and spillover have been shown in various network formats, industries, geographic scopes, and country contexts. This study finds evidence of localized learning in citation networks in the solar photovoltaic balance-of-systems (PV BOS) innovations, and that the levels of localized learning vary based on the degree to which technologies are relevant to local contexts. Thus, this study proposes that the value of local and non-local knowledge on patent quality is contingent on technological characteristics. Leveraging the different degrees of local dependence on four types of technologies in the PV BOS industry, we find that the impact of local knowledge on innovation quality is higher for technologies that are more rooted in local contexts and that the impact of non-local knowledge is higher for technologies that are less relevant to local contexts.