The geography of innovation dynamics

TL;DR

This paper investigates how geography and political borders influence the spread of innovation among metropolitan areas, revealing a shift from political to global factors and identifying distinct innovation pathways.

Contribution

It analyzes the evolving role of geography in innovation diffusion and visualizes innovation pathways, offering insights for targeted policy interventions.

Findings

Political geography was crucial for innovation diffusion until about 20 years ago.

A shift towards a more global innovation ecosystem has occurred since then.

Two main innovation pathways are identified based on competitiveness and diversification.

Abstract

Cities and metropolitan areas are major drivers of creativity and innovation in all possible sectors: scientific, technological, social, artistic, etc. The critical concentration and proximity of diverse mindsets and opportunities, supported by efficient infrastructures, enable new technologies and ideas to emerge, thrive, and trigger further innovation. Though this pattern seems well established, geography's role in the emergence and diffusion of new technologies still needs to be clarified. An additional important question concerns the identification of the innovation pathways of metropolitan areas. Here, we explore the factors that influence the spread of technology among metropolitan areas worldwide and how geography and political borders impact this process. Our evidence suggests that political geography has been highly important for the diffusion of innovation till around two decades ago, slowly declining afterwards in favour of a more global innovation ecosystem. Further, the visualisation of the evolution of countries and metropolitan areas in a 2d space of competitiveness and diversification reveals the existence of two main innovation pathways, discriminating between different strategies towards progress. Our work provides insights for policymakers seeking to promote economic growth and technological advancement through tailored investments in prioritarian innovation areas.