The relevance of scientific knowledge externalities for technological change and resulting inventions across European metropolitan areas

Contrary to perceptions in which technological development proceeds independently of scientific research, the interplay between science and technology has been recognized as an essential part in technological change, industrial competitiveness, and economic growth. While the process of knowledge exchanges between the nexus is conceptually well grounded in relevant literatures, the absence of quantitative measures and assessments of such linkages may underestimate the importance of scientific knowledge inputs for generating high-impact innovative outcomes. In this regard, we propose a large quantitative analysis on knowledge externalities from science to technology by investigating patent citations to science data across European metropolitan regions. First, we construct a dataset of patent citations to scientific knowledge that includes information on the spatial origins of knowledge spillovers. Subsequently, the ratio of internal scientific knowledge sourcing to external sources and its effect on patent citation impact is evaluated. Findings suggest that regions with a higher reliance on their internal scientific resources tend to generate inventions with higher technological impact, and that a strong connection between science and technology is even more effective in advanced industrial regions.