Localized knowledge spillover and the emergence of new technology: the case of fuel cell technology development

For the past 20 years scholars have found support for the thesis that knowledge spills over in geographical and technological proximity to the source of knowledge creation. It is the objective of this paper to examine whether this understanding of LKS can contribute to a greater understanding of emerging technologies and their geographical distribution. The paper examines this by studying the emergence of a generic technology with a very complex knowledge base, namely the fuel cell (FC) technology. The analysis is carried out on an OECD dataset on regionalized PCT patent applications (OECD REGPAT, June 2009). The analysis focuses on knowledge production in FCs in the period 1992-2006. The results show: 1) that the spatial distribution of FC patents tends to agglomerate and 2) that this agglomeration pattern correlates to some degree with the general pattern of regional strengths in FC-related technology fields. These findings corroborate the usefulness of the theory on LKS in explaining elements of the emergence of new technologies. Moreover, the analysis sheds new light on regional development and diversification along new technological trajectory.