Seeds of Regional Structural Change: The Role of Entrepreneurs and Expanding Firms in Shaping Local Path Dependencies
AbstractThis article studies path dependent regional structural change using a quantitative framework. Based on an inter-industry skill-relatedness indicator, the degree to which local skill-bases exist and force local economies onto a path-dependent development trajectory is studied. The main question is into which local industries new plants enter, while distinguishing between the plants of entrepreneurs and firms. Using a dataset on Swedish individuals and municipalities, it is found that entrepreneurs tend to reinforce established local industrial specializations, whereas new plants of already existing firms do less so. Moreover, outside actors deepen local economyâ€™s core specialization more than do local actors.
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Bibliographic InfoPaper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2010-014-ORG.
Date of creation: 24 Mar 2010
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structural change; region; path dependence; entrepreneurship; skill-relatedness; human capital;
Other versions of this item:
- Frank Neffke & Martin Henning, 2010. "Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies," Papers in Evolutionary Economic Geography (PEEG) 1005, Utrecht University, Section of Economic Geography, revised Apr 2010.
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-ENT-2010-05-02 (Entrepreneurship)
- NEP-GEO-2010-05-02 (Economic Geography)
- NEP-URE-2010-05-02 (Urban & Real Estate Economics)
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