Xavier tinguely: Clusters and the Geography of Invention in a Globalized Economy: Evidence from...

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Clusters and the Geography of Invention in a Globalized Economy: Evidence from Patent Data in Switzerland

MOC Network Cluster Research Workshop

Harvard Business School

December 12, 2010

Philippe Gugler and Xavier Tinguely

Center for Competitiveness

University of Fribourg

Switzerland


Structure of the Presentation

1. Theoretical background

2. Research objectives and hypotheses

3. Data

4. Remarks

5. Methodology

6. Results

7. Concluding remarks


1. Theoretical Background• The debate on the existence of agglomeration economies and spatial concentration of economic activities in specific geographic locations now has a relatively long tradition and has been increasingly studied over the last two decades (i.a. Marshall, 1890; Porter, 1990; Krugman, 1991; Sölvell, 2009).• It is also well established in the innovation literature that technological activities tend to cluster geographically (i.a. Schumpeter, 1939; Freeman, 1991; Feldman, 1994; Fagerberg, 2005).• However, while a location paradox has been identified in a globalizing world economy, the role of external ties, that is relationships with agents outside the cluster or with MNE affiliates which multi-locate in several areas simultaneously, has surprisingly been partially overlooked (i.a. MacKinnon et al., 2002, Cook, 2005, Waxell & Malmberg, 2007, Hervás-Oliver & Albors-Garrigós, 2008).

2. Research objectives and hypotheses• Objective 1: Evaluate the spatial distribution of inventive activities

in Switzerland.– Hypothesis 1: The inventive activity is unevenly distributed across the

Swiss territory.

• Objective 2: Identify the specialization pattern of inventive activities and the main inventive clusters in Switzerland.– Hypothesis 2: The sectoral distribution of inventive activities tends to

cluster geographically.

• Objective 3: Explore the Swiss geography of invention in a globalized economy.– Hypothesis 3: Clusters do not only stimulate the regional inventive

dynamism but also force their proponents to source knowledge from the most inventive and specialized knowledge hubs around the world.

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3. Data

• OECD REGPAT database which registers patent applications at the European Patent Office (EPO) since 1977.

• Advantages of patent data with respect to the objectives of this research:– Patents give information on the residence of the inventor and

applicant and can be grouped regionally.– Patents record the technological content of the invention and can

be classified according to industrial sectors.


4. Remarks• The results which will be presented below relate only to

the year 2005 (priority year) and that for two reasons:– First, even though the OECD database records patent applications until 2009, data for

the years 2007-2009 is still incomplete.

– Second, the concentration of the inventive activity (measured through patent data) will be compared to the concentration of productive activity measured through employment data and employment surveys are conducted only three times per decade in Switzerland (i.e. 01, 05, 08).

• The upcoming results have been extracted from the applicant database and that for two reasons also:– First, Switzerland is, geographically-speaking, a small country. Therefore it is not rare,

for example, that a person works for a firm in Zurich and lives in Fribourg. If the inventor database would have been chosen, the patent would count for Fribourg while the region does not benefit from the invention at all.

– Second, the applicant database allows us to analyze the genesis of the invention and trace the global inventive path of patents demanded by firms located in Switzerland.

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5. Methodology• All patent applications filed at the EPO by applicants located in Switzerland in

2005 have been extracted and allocated to the region of establishment of the applicant at three regional levels: municipality, district (county) and canton (state). Fractional counts have been used.

• As patents are classified by technological fields (IPC) and not industrial sectors, the selected patent applications have been linked to an industrial sector (NACE) thanks to a concordance table developed by Schmoch & al. (2003). The specialization pattern has then been measured with the index of Revealed Technological Advantage (RTA).

• In order to identify the main Swiss inventive clusters, we applied the cluster mapping methodology of the Swiss Cluster-Mapping Project (Keller, 2009), which is based on the methodology developed by Porter & al. (2003) and the European Cluster Observatory, to Swiss patent data. The same approach has been conducted with employment data. We defined the main Swiss clusters as those which emerged both from patent data and employment data.

• Finally, we explored the origin of patent applications filed by applicants based in main Swiss clusters by analyzing the location of residence of their inventors.

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6. Results

6.1. Spatial distribution of inventive activities in Switzerland

6.2. Specialization pattern of inventive activities and main clusters identification

6.3. Clusters and the geography of invention in a globalized economy


6. Results




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Table 1. Effective number of patent applications at the EPO by applicants based in Switzerland, cantons and districts, 2005

(Gini_empl: 0.52) (Gini_empl: 0.56)

Source: Personal elaboration based on OECD (2010), OECD REGPAT database, June 2010.

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Table 2. Patent applications per 1,000 employees (full-time equivalent) at the EPO by applicants based in Switzerland, cantons and districts, 2005

Source: Personal elaboration on the basis of data from OECD (2010), OECD REGPAT database, June 2010 and FSO (2005), Recensement fédéral des entreprises 2005.

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Table 3. Ratio establishments per enterprises registered in the Swiss commercial register, 2005.

Source: Personal elaboration based on FSO (2005), Recensement fédéral des entreprises 2005 and OFRC (2005), Statistiques 2005.

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Map 1. Patent applications per 1,000 employees (full-time equivalent) at the EPO by applicants based in Switzerland, cantons, 2005

Basel CitySchaffhausen

Neuchatel

Zug

Nidwalden


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Map 2. Patent applications per 1,000 employees (full-time equivalent) at the EPO by applicants based in Switzerland, districts, 2005

Basel City

Neuchatel

Lavaux-Oron

Riviera-Pays d’Enhaut

Waldenburg

Schaffhausen

Zug

Imboden

Nidwalden



6. Results




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Table 4. Effective number of patent applications at the EPO by applicants based in Switzerland, NACE industrial sectors, 2005


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Table 5. Cantonal distribution and specialization pattern of patent applications at the EPO in the pharmaceutical sector by applicants based in Switzerland, 2005

= Number of patent applications by applicants in sector (j) based in region (i)

= Number of patent applications by applicants in sector (j) in all regions

= Number of patent applications by applicants based in region (i) in all sectors

= Number of patent applications by applicants in all regions and all sectors

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Map 3. Specialization pattern of inventive activities in the pharmaceutical sector, RTA, 2005.

Basel CityBasel Country Schwyz

Vaud

Geneva

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RT

A_

Gin

i

Patents

Chart 1. Main Swiss inventive clusters identified on the basis of patent data, NACE sectors, 2005.

20Employment (FTE)

LQ_

gini

Chart 2. Main Swiss clusters identified on the basis of employment data, NACE sectors, 2005.


6. Results




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Clusters and the Geography of invention in a globalized economy

• In this presentation, we will focus on the analysis of the genesis of patent applications in the pharmaceutical sector by applicants established in the canton of Basel City.

• As put forward above:– The pharmaceutical sector has been identified as one of the main Swiss clusters both

on the basis of patent data and employment data.

– Roughly 745 patent applications were demanded at the EPO in the pharmaceutical sector by applicants established in Switzerland in 2005.

– 410 (or 55%) were filed by applicants localized in the canton of Basel City.

– The canton of Basel City recorded the highest RTA coefficient (3.32) in the pharmaceutical sector.

– The canton of Basel City is unanimously recognized as the heart of one of the world’s leading chemical and biopharmaceutical cluster: the BioValley (i.a. European cluster observatory; Zeller, 2004; Chiaroni & Chiesa, 2005; Cook, 2006).

• The 410 patent applications demanded by applicants localized in the canton of Basel City were developed by 2,102 inventors.

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Table 6. Country of residence and company of the inventors of patents demanded in the pharmaceutical sector, canton of Basel City, 2005


Table 7. Region of residence of the inventors of patent applications filed in the pharmaceutical sector, canton of Basel City, 2005

Source: Personal elaboration based on OECD (2010), OECD REGPAT database, June 2010.24

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Table 8. Region of residence of the inventors of patent applications filed in the pharmaceutical sector, by firms, canton of Basel City, 2005


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Table 9. Nature of the region of residence of the inventors of patent applications filed in the pharmaceutical sector, canton of Basel City, 2005

Source: Personal elaboration

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Findings• 88% of the inventors (1,852) were localized in a

“pharmaceutical cluster region”– 43.8% (921) in the BioValley cluster (Northwestern Switzerland, Freiburg (DE)

and Alsace (F)).– 44.2% (931) in other pharmaceutical clusters (of which 27.4% in California,

Massachusetts and New Jersey and ).– Only 12% (250) in a “non-pharmaceutical cluster region”.

• Regarding the origin of the patents demanded by the two main applicants (Novartis and Roche)– 85.4% of the inventors of Novartis were localized in a cluster region, of which:

• 40.8% in the BioValley cluster

• 33.6% in California, Massachusetts and New Jersey

– 93.2% of the inventors of Roche were established in a cluster region, of which:• 43.4% in the BioValley cluster

• 27.2 % in California and New Jersey

• 15.4% in Oberbayern (DE)

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California

New Jersey

Massachusetts

Alsace

Northwestern Switzerland

Freiburg (DE)

Oberbayern

Kanto

Concluding remarks• The inventive activity, measured through patent data, is

unevenly distributed across the Swiss territory and even more concentrated than the productive activity, measured by employment data.

• The sectoral distribution of inventive activity tends to cluster geographically.

• Two sectors (pharmaceuticals and measurement instruments) have been identified as main clusters based on both patent data and employment data.

• Almost 90% of patent applications demanded at the EPO in the pharmaceutical sector by applicants located in the canton of Basel City in 2005 were developed in regions identified as a pharmaceutical cluster.


Many thanks for your attention!


Xavier tinguely: Clusters and the Geography of Invention in a Globalized Economy: Evidence from...

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