Technological relatedness, knowledge space and smart specialisation: The case of Germany

The level of technological specialisation in the regions of Germany is assessed in this paper, as well as how such specialisation has evolved over time. Further, in three selected regions (Munich, Düsseldorf and Oberes Elbtal/Osterzgebirge), the knowledge space is explored in detail and compared to existing smart specialisation strategies. Average relatedness and knowledge space based upon EPO patent applications are used to measure the specialisation and technology trajectories of the German regions. Between three periods 1988–1992, 1998–2002 and 2008–2012, the specialisation of Germany based on EPO patent applications increased by 10%, despite a decline in many regions. Machinery and transportation industries have increased their significance. The assessment of regional smart specialisation strategies in the three German states shows that the methodology in terms of the identification of prospective industries is largely variegated and insufficiently developed. More attention should also be given to the choice of an appropriate geographical level of aggregation for analysis. Knowledge relatedness and knowledge complexity could be used as methodological tools for selecting prospective industries in smart specialisation strategies.