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Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions

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  • Frank Van Oort

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  • Stefan de Geus
  • Teodora Dogaru
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    Abstract

    This paper introduces indicators of regional related variety and unrelated variety to conceptually overcome the current impasse in the specialisation-diversity debate in agglomeration economics. Although various country-level studies have been published on this conceptualisation in recent years, a pan-European test has until now been missing from the literature. A pan-European test is more interesting than country-level tests, as newly defined cohesion policies, smart-specialisation policies, place-based development strategies and competitiveness policies may be especially served by related and unrelated variety conceptualisations. We test empirically for the significance of variables based on these concepts, using a cross-sectional dataset for 205 European regions during the period 2000- 2010. The results confirming our hypotheses are that related variety is significantly related to employment growth and that specialisation is significantly related to productivity growth. We do not find robust relationships that are hypothesised between unrelated variety and unemployment growth. Our analyses show that evolutionary economic geography and institutional and policy-based regional development may be integrated fruitfully at the European level.

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    File URL: http://econ.geo.uu.nl/peeg/peeg1312.pdf
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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 1312.

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    Length: 18 pages
    Date of creation: Aug 2013
    Date of revision: Aug 2013
    Handle: RePEc:egu:wpaper:1312

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    6. Frank Neffke & Martin Henning & Martin Ron Boschma, 2009. "How do regions diversify over time? Industry relatedness and the development of new growth paths in regions," Papers in Evolutionary Economic Geography (PEEG) 0916, Utrecht University, Section of Economic Geography, revised Oct 2009.
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    11. Julie Le Gallo & Yiannis Kamarianakis, 2011. "The Evolution of Regional Productivity Disparities in the European Union from 1975 to 2002: A Combination of Shift-Share and Spatial Econometrics," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 123-139.
    12. R. Paci & S. Usai, 2000. "Externalities, knowledge spillovers and the spatial distribution of innovation," Working Paper CRENoS 200002, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    13. Breandan O Huallachain & Der-Shiuan Lee, 2011. "Technological Specialization and Variety in Urban Invention," Regional Studies, Taylor & Francis Journals, vol. 45(1), pages 67-88.
    14. Ron Boschma & Asier Minondo & Mikel Navarro, 2010. "Related variety and regional growth in Spain," Papers in Evolutionary Economic Geography (PEEG) 1012, Utrecht University, Section of Economic Geography, revised Oct 2010.
    15. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    16. Quatraro, Francesco, 2010. "Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions," Research Policy, Elsevier, vol. 39(10), pages 1289-1302, December.
    17. Ron A. Boschma & Jan G. Lambooy, 1999. "Evolutionary economics and economic geography," Journal of Evolutionary Economics, Springer, vol. 9(4), pages 411-429.
    18. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    19. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
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