Can knowledge reclassification accelerate technological innovation?

TL;DR

This paper explores how reclassification of existing technological knowledge, as seen through patent data, can serve as a catalyst for faster innovation and technological progress.

Contribution

It introduces a model linking knowledge reclassification to accelerated innovation, supported by empirical patent data across multiple technology domains.

Findings

Recent patents are more likely to be reclassified.

Larger technological classes have more reclassified patents.

Reclassification correlates with faster technological growth.

Abstract

Technological knowledge evolves not only through the generation of new ideas, but also through the reinterpretation of existing ones. Reinterpretations lead to changes in the classification of knowledge, that is, reclassification. This study investigates how reclassified inventions can serve as renewed sources of innovation, thereby accelerating technological progress. Drawing on patent data as a proxy for technological knowledge, I discuss two empirical patterns: (i) more recent patents are more likely to get reclassified and (ii) larger technological classes acquire proportionally more reclassified patents. Using these patterns, I develop a model that explains how reclassified inventions contribute to faster innovation. The predictions of the model are supported across all major technology domains, suggesting a strong link between reclassification and the pace of technological advancement. More generally, the model connects various, seemingly unrelated knowledge quantities, providing a basis for knowledge intrinsic explanations of growth patterns.