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Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies

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  • Frank Neffke

    ()

  • Martin Henning

    ()

Abstract

This article studies path dependent regional structural change using a quantitative framework. Based on an inter-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 economy's core specialization more than do local actors.

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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1005.

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Length: 34 pages
Date of creation: Apr 2010
Date of revision: Apr 2010
Handle: RePEc:egu:wpaper:1005

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Related research

Keywords: structural change; economic geography; path dependence; entrepreneurship; skill-relatedness; human capital;

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