The role of the technological capacity of regional partners on technological branching

This study examines the often-underexplored roles of regional linkages and the technological capacity of partner regions in shaping technological branching, particularly in a developing country context. Analysing 127 technology classes across 136 Brazilian regions from 1997 to 2020, we identify that different types of regional linkages are associated with distinct patterns in regional technological trajectories. Intraregional linkages are associated with a lower likelihood of entering new technological specialisations, whereas interregional linkages are associated with a higher likelihood of such entries, with the technological capacity of partner regions moderating these patterns. Collaborations with specialised are linked to greater branching, while linkages with non-specialised partners show weaker or limiting associations. Technological persistence also displays systematic correlations with regional linkages: both intraregional and interregional linkages are positively related to technological persistence, particularly when partners are technologically specialised, while linkages with non-specialised regions are negatively correlated with it. These findings underscore the dual role of regional linkages in technological branching: both intraregional and interregional linkages, particularly those involving specialised regions, are associated with patterns of technological persistence and with the emergence of new technological paths, whereas connections with non-specialised regions are associated with lower probabilities of persistence. This emphasises the importance of technological capacity in relation to patterns of technological branching