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Does related variety foster regional entrepreneurship? Evidence from European regions

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  • Jeroen Content
  • Koen Frenken
  • Jacob A. Jordaan

Abstract

Several studies have identified positive effects of related variety among a region’s economic sectors on employment growth. However, the exact mechanisms through which knowledge spillovers between related sectors translate into employment growth are yet to be demonstrated. Entrepreneurship may be a possible transmission mechanism via which spillovers lead to the creation of new jobs. In this paper, we analyze novel pan-European regional survey data that distinguishes between opportunity- and necessity-driven entrepreneurs and we find that related variety has a positive effect on opportunity-driven entrepreneurship. In addition, we also find that different ‘varieties of capitalism’ influence regional entrepreneurship.

Suggested Citation

  • Jeroen Content & Koen Frenken & Jacob A. Jordaan, 2019. "Does related variety foster regional entrepreneurship? Evidence from European regions," Regional Studies, Taylor & Francis Journals, vol. 53(11), pages 1531-1543, November.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:11:p:1531-1543
    DOI: 10.1080/00343404.2019.1595565
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    Cited by:

    1. Ejdemo, Thomas & Örtqvist, Daniel, 2020. "Related variety as a driver of regional innovation and entrepreneurship: A moderated and mediated model with non-linear effects," Research Policy, Elsevier, vol. 49(7).
    2. Bianca Francisco Garcia Benavides & Fernando Gomez-Zaldivar, 2023. "Key factors for productive diversification: opportunities for the design of regional industrial strategies in Mexico (Factores clave para la diversificacion productiva: oportunidades para el diseño d," Sobre México. Revista de Economía, Sobre México. Temas en economía, vol. 1(8), pages 69-93.
    3. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    4. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    5. Vaillant, Yancy & Lafuente, Esteban & Vendrell-Herrero, Ferran, 2023. "Assessment of industrial pre-determinants for territories with active product-service innovation ecosystems," Technovation, Elsevier, vol. 119(C).
    6. Barba-Sánchez, Virginia & Arias-Antúnez, Enrique & Orozco-Barbosa, Luis, 2019. "Smart cities as a source for entrepreneurial opportunities: Evidence for Spain," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    7. Kim, Jungho & Kollmann, Trevor & Palangkaraya, Alfons & Webster, Elizabeth, 2022. "Does local technological specialisation, diversity and dynamic competition enhance firm creation?," Research Policy, Elsevier, vol. 51(7).
    8. Romão, João, 2020. "Tourism, smart specialisation, growth, and resilience," Annals of Tourism Research, Elsevier, vol. 84(C).
    9. Nana Yang & Qiming Liu, 2023. "How does industrial agglomeration affect regional innovation? A spatial econometric analysis," Growth and Change, Wiley Blackwell, vol. 54(4), pages 826-852, December.
    10. Jeroen Content & Nicola Cortinovis & Koen Frenken & Jacob Jordaan, 2022. "The roles of KIBS and R&D in the industrial diversification of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 29-64, February.
    11. Giedrė Dzemydaitė, 2021. "The Impact of Economic Specialization on Regional Economic Development in the European Union: Insights for Formation of Smart Specialization Strategy," Economies, MDPI, vol. 9(2), pages 1-15, May.
    12. Cheng, Ruiqi & Yuan, Peng & Jiang, Gongxiong, 2023. "Growth, agglomeration externalities, and survival: Evidence from Chinese manufacturing start-ups," Journal of Business Research, Elsevier, vol. 154(C).
    13. João Romão, 2020. "Variety, Smart Specialization and Tourism Competitiveness," Sustainability, MDPI, vol. 12(14), pages 1-13, July.
    14. Ren Lu & Qing Song & Ting Xia & Daguo Lv & Torger Reve & Ze Jian, 2021. "Unpacking the U‐shaped relationship between related variety and firm sales: Evidence from Japan," Papers in Regional Science, Wiley Blackwell, vol. 100(5), pages 1136-1157, October.
    15. Michael Olumekor & Hossam Haddad & Nidal Mahmoud Al-Ramahi, 2023. "The Relationship between Search Engines and Entrepreneurship Development: A Granger-VECM Approach," Sustainability, MDPI, vol. 15(6), pages 1-16, March.

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