Innovation dynamics across institutional environments: regulatory exposure and geopolitical shocks in nanotechnology

Abstract

Nanotechnology represents a general-purpose technology with significant transformative potential across industrial sectors. Its commercialization, however, unfolds within regulatory systems that differ across application domains and countries, making institutional exposure a strategic condition rather than a background factor. This study examines how geopolitical shocks and EU nano-specific regulatory provisions are associated with nanotechnology patenting in the United States, Germany, and Japan from 2004 to 2023. We contribute to innovation-management and institutional-theory debates by linking three elements that are usually analyzed separately: application-domain selection, regulatory exposure, and crisis-period innovation responses. A structured Scopus search, confirmed with Scite, is used to consolidate nanotechnology applications into eight market-relevant domains, which are then mapped to EU regulatory instruments. Patent counts are analyzed with PPML estimations and a Germany-focused difference-in-differences/event-study design. The results show strong positive shock-period patenting in the United States, weaker German responses, and a post-2020 relative decline in Germany’s nano-specific regulated domains. The study offers managers a transparent and auditable framework for evaluating nanotechnology portfolios through technological potential, regulatory exposure, and institutional responsiveness.