Path-breaking to Innovate: Patenting in Internet of Things (IoT) Technologies

This paper challenges conventional wisdom that core-technology competence and innovation persistence drive innovation success in architecturally distinct technologies. Using Internet of Things (IoT), we theorise its multi-layered architecture creates conditions where specialisation produces cognitive lock-in whilst breadth enables cross-domain integration. Analysing 93,777 patents from 2,619 UK firms (2008–2017), we find: (1) core-technology competence negatively predicts IoT patenting; (2) related and unrelated technological diversification positively influence IoT innovation, reversing absorptive capacity arguments; (3) innovation persistence strengthens IoT innovation through interaction with unrelated but not related diversification. Analysis across Big Data, 3D printing, and Robotics confirms generalisability. These findings identify architectural distinctiveness as a boundary condition requiring revision of core competence, absorptive capacity, and innovation persistence frameworks. Firms should prioritise technological breadth over depth; policymakers should foster diverse knowledge connections rather than supporting innovation champions.