Innovation and Specialization Dynamics in the Automotive Sector: Comparative Analysis of Cooperation & Application Networks

This paper considers the innovation dynamics in the automotive industry of selected countries. Key elements concern the intensity of patenting networks. The role of innovation dynamics differs across countries which can be explained in terms of headquarter status, the vertical integration of the sector and the overall structural adjustment. A better regional R&D activity tends to stimulate regional economic development. In this context, clusters become more important, because these constructs are an instrument in promoting innovations, industrial development, industrial competitiveness and growth. This is why we apply social network analysis methods to describe and measure the evolution of Cooperation and Application Networks in selected automotive-clusters in Germany and Austria. Scientist Mobility of inventors and the Cooperation of applicants lead to knowledge spillovers. These spillovers have a stimulating effect on innovative activity. To measure these effects we use patents of the European Patent Office (EPO), namely for 1992-2007. Social network analysis turns out to be quite useful in understanding the innovation dynamics in European Cluster Regions. Thus, we can draw some conclusions for the supply side dynamics in the EU single market and the automotive industry, respectively.