A new empirical index to track the technological novelty of inventions: A sector-level analysis

Gao, Yuan ORCID: https://orcid.org/0000-0003-3505-9304 and Lazarova, Emiliya ORCID: https://orcid.org/0000-0002-7178-0644 (2024) A new empirical index to track the technological novelty of inventions: A sector-level analysis. Journal of Evolutionary Economics. ISSN 1432-1386

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Abstract

We introduce the Knowledge Origin Re-Combination Index (KORCI) to measure the ex-ante technological novelty of inventions at the sectoral level. The index is developed through the intertemporal comparison of a sequence of networks, which represents the complex connections between the technological components listed in subsequent cohorts of patent applications. This allows us to quantify the intensity of the recombination of components and the introduction of new ones at the frontier of technological knowledge. Using patent data from three sectors – artificial intelligence, computer technology, and pharmaceuticals – we are the first to document the cyclical nature of the evolution of ex-ante technological novelty of inventions across all three sectors. These evolutionary cycles, however, are not synchronized, and therefore it is unlikely that they are driven by a common innovation engine. Further investigation into the correlation between KORCI and patent growth rates reveals other differences among the sectors in both direction and strength. We conjecture that the relation between the degree of ex-ante technological novelty and invention activities depends on the specific innovation environment of the sector – whether these are process-based or product-based. Our new tool opens opportunities for new empirical research into the evolution of innovation at the sectoral level.

Item Type:	Article
Uncontrolled Keywords:	knowledge origin re-combination index,cyclicity,technological evolution,patents,sectoral analysis,ex-ante novelty,o34,knowledge origin re-combination index,o31,o33,sectoral analysis,technological evolution,economics and econometrics,business, management and accounting(all) ,/dk/atira/pure/subjectarea/asjc/2000/2002
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Industrial Economics Faculty of Social Sciences > Research Groups > Applied Econometrics And Finance Faculty of Social Sciences > Research Groups > Economic Theory
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	06 Sep 2024 14:35
Last Modified:	02 Nov 2024 00:52
URI:	https://ueaeprints.uea.ac.uk/id/eprint/96617
DOI:	10.1007/s00191-024-00872-8

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