Abstract
This paper analyses the effect of variety and intensity of knowledge on the innovation of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (1) internal knowledge generated within the region and also (2) external knowledge networks flowing into the region in explaining regional innovation, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovation. When it comes to variety, related variety of knowledge plays a superior role.
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