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The emergence of new industries at the regional level in Spain. A proximity approach based on product-relatedness

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  • Ron Boschma

    ()

  • Asier Minondo

    ()

  • Mikel Navarro

    ()

Abstract

How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. As the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities available at the regional level play a larger role than capabilities available at the country level for the development of new industries. To test this, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions, and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than proximity to the national industrial structure. This suggests that capabilities at the regional level enable the development of new industries.

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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 1201.

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Length: 27 pages
Date of creation: Jan 2012
Date of revision: Jan 2012
Handle: RePEc:egu:wpaper:1201

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Keywords: Regional branching; diversification; new industries; capabilities; Spain; proximity index;

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References

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  1. Ron Boschma & Asier Minondo & Mikel Navarro, 2012. "Related variety and regional growth in Spain," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 241-256, 06.
  2. Matthias Brachert & Alexander Kubis & Mirko Titze, 2011. "Related Variety, Unrelated Variety and Regional Functions: Identifying Sources of Regional Employment Growth in Germany from 2003 to 2008," IWH Discussion Papers 15, Halle Institute for Economic Research.
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Citations

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Cited by:
  1. Ron Boschma & Gaston Heimeriks & Pierre-Alexandre Balland, 2013. "Scientific Knowledge Dynamics and Relatedness in Bio-Tech Cities," Papers in Evolutionary Economic Geography (PEEG) 1304, Utrecht University, Section of Economic Geography, revised Apr 2013.
  2. Ron Boschma, 2014. "Towards an evolutionary perspective on regional resilience," Papers in Evolutionary Economic Geography (PEEG) 1409, Utrecht University, Section of Economic Geography, revised Mar 2014.
  3. Ron Boschma, 2014. "Constructing Regional Advantage and Smart Specialisation: Comparison of Two European Policy Concepts," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2014(1), pages 51-68.
  4. Ron Boschma & Pierre-Alexandre Balland & Dieter Franz Kogler, 2013. "Relatedness and Technological Change in Cities: The rise and fall of technological knowledge in U.S. metropolitan areas from 1981 to 2010," Papers in Evolutionary Economic Geography (PEEG) 1316, Utrecht University, Section of Economic Geography, revised Sep 2013.
  5. Bram Timmermans & Ron Boschma, 2012. "The effect of intra- and inter-regional labour mobility on plant performance in Denmark: the significance of related labour inflows," Papers in Evolutionary Economic Geography (PEEG) 1213, Utrecht University, Section of Economic Geography, revised Jun 2012.
  6. Jürgen Essletzbichler, 2013. "Relatedness, industrial branching and technological cohesion in U.S. metropolitan areas," Papers in Evolutionary Economic Geography (PEEG) 1307, Utrecht University, Section of Economic Geography, revised May 2013.
  7. Alessandra Colombelli & Francesco Quatraro, 2013. "New Firm Formation and the properties of local knowledge bases: Evidence from Italian NUTS 3 regions," Working Papers hal-00858989, HAL.
  8. Rikard Eriksson & Martin Henning & Anne Otto, 2014. "Regional and industrial mobility of workers leaving mature industries. A study of individuals who exit the Swedish shipbuilding industry 1970-2000," Papers in Evolutionary Economic Geography (PEEG) 1415, Utrecht University, Section of Economic Geography, revised Jul 2014.
  9. Gaston Heimeriks & Ron Boschma, 2012. "The path- and place-dependent nature of scientific knowledge production in biotech 1986-2008," Papers in Evolutionary Economic Geography (PEEG) 1210, Utrecht University, Section of Economic Geography, revised Jun 2012.
  10. Koen Frenken & Elena Cefis & Erik Stam, 2013. "Industrial dynamics and clusters: a survey," Working Papers 13-11, Utrecht School of Economics.

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