We study the relationship between the performance of firms and their technological portfolios using tools borrowed from complexity science. In particular, we ask whether the accumulation of knowledge and capabilities associated with a coherent set of technologies leads firms to experience advantages in terms of productive efficiency. To this end, we analyze both the balance sheets and the patenting activity of about 70 thousand firms that have filed at least one patent over the period 2004-2013. We define a measure of corporate coherent diversification, based on the bipartite network linking companies with the technological fields in which they patent, and relate it to firm performance in terms of labor productivity. Our measure favors technological portfolios that can be decomposed into large blocks of closely related fields over portfolios with the same breadth of scope, but a more scattered diversification structure. We find that the coherent diversification of firms is quantitatively related with their economic performance and captures relevant information about their productive structure. In particular, we prove on a statistical basis that a naive definition of technological diversification can explain labor productivity only as a proxy of size and coherent diversification. This approach can be used to investigate possible synergies within firms and to recommend viable partners for mergers and acquisitions.

The present study provides an analysis of empirical regularities in the development of green technology. We use patent data to examine inventions that can be traced to the environment-related catalogue (ENV-Tech) covering technologies in environmental management, water-related adaptation and climate change mitigation. Furthermore, we employ the Economic Fitness-Complexity (EFC) approach to assess their development and geographical distribution across countries between 1970 and 2010. This allows us to identify three typologies of countries: leaders, laggards and catch-up. While, as expected, there is a direct relationship between GDP per capita and invention capacity, we also document the remarkable growth of East Asia countries that started from the periphery and rapidly established themselves as key actors. This geographical pattern coincides with higher integration across domains so that, while the relative development of individual areas may have peaked, there is now demand for greater interoperability across green technologies.

Economic Complexity (EC) methods have gained increasing popularity across fields and disciplines. In particular, the EC toolbox has proved particularly promising in the study of complex and interrelated phenomena, such as the transition towards a more sustainable economy. Using the EC approach, scholars have been investigating the relationship between EC and sustainability, and identifying the distinguishing characteristics of green activities and to assess the readiness of productive and technological structures for the sustainability transition. This article proposes to review and summarize the data, methods, and empirical literature that are relevant to the study of the sustainability transition from an EC perspective. We review three distinct but connected blocks of literature on EC and environmental sustainability. First, we survey the evidence linking measures of EC to indicators related to environmental sustainability. Second, we review articles that strive to assess the green competitiveness of productive systems. Third, we examine evidence on green technological development and its connection to non-green knowledge bases. Finally, we summarize the findings for each block, while identifying criticalities and avenues for further research in this recent and growing body of empirical literature.

We analyse the autocatalytic structure of technological networks and evaluate its significance for the dynamics of innovation patenting. To this aim, we define a directed network of technological fields based on the International Patents Classification, in which a source node is connected to a receiver node via a link if patenting activity in the source field anticipates patents in the receiver field in the same region more frequently than we would expect at random. We show that the evolution of the technology network is compatible with the presence of a growing autocatalytic structure, i.e. a portion of the network in which technological fields mutually benefit from being connected to one another. We further show that technological fields in the core of the autocatalytic set display greater fitness, i.e. they tend to appear in a greater number of patents, thus suggesting the presence of positive spillovers as well as positive reinforcement. Finally, we observe thatcore shiftstake place whereby different groups of technology fields alternate within the autocatalytic structure; this points to the importance of recombinant innovation taking place between close as well as distant fields of the hierarchical classification of technological fields.

The objective of this paper is to analyse the relationship between income inequality and environmental innovation. To this end, we use the Economic Fitness and Complexity algorithm to compute an index of green inventive capacity in a panel of 57 countries over the period 1970–2010. The empirical analysis reveals that, on average, inequality is detrimental to countries’ capacity to develop complex green technologies. Using non-parametric methods we further articulate this general finding and uncover interesting non-linearities in the relationship between innovation and inequality.

In this paper, we analyse the role of international patent collaborations in the performance of domestic firms and how the relationship is augmented by the pre-existing capabilities of the domestic firms. Using data on Indian firms, we study patterns of co-invention by Indian firms and foreign partners. The results confirm the crucial role played by the absorptive capacity of domestic firms in enhancing benefits from patent collaborations. Strikingly, we find that the coefficient associated to foreign collaboration has a positive effect on performance only when complemented with previous innovative capabilities. The evidence we present in this work contributes to existing knowledge on the microeconomics behind the process of technological capability accumulation and catching up in developing countries.