Technological Variety and the Size of Economies

Several empirical studies show that the size of an economy affects the number of fields where it is technologically active (technological variety). In this paper I “quantify” the relationship between the countries’ economic size and technological variety by using European patent data. Thus, technological variety can be distinguished from technological intensity. I find that technological variety accounts for about 40% of the higher number of patent applications made by larger and richer economies. However, the size/variety relationship is more robust than the wealth/variety relationship. The empirical results regarding technological activity resemble those on international trade and may be interpreted combining different theories.