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Industrial Relatedness and Regional Resilience in the European Union

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  • Giulio Cainelli
  • Roberto Ganau
  • Marco Modica

Abstract

The 2008 Great Recession prompted interest in the concept of regional resilience. This paper discusses and empirically investigates the relationship between industrial relatedness and economic resilience across European Union regions over the 2008-2012 crisis period. The analysis focuses on two types of industrial relatedness: technological and vertical (i.e. market-based). The empirical analysis is performed on a sample of 209 NUTS-2 regions in 16 countries. Our results highlight a positive effect of technological relatedness on the probability of resilience in the very short run (i.e. the 2008-2009 period), while the negative effect of vertical relatedness seems to persist for longer.

Suggested Citation

  • Giulio Cainelli & Roberto Ganau & Marco Modica, 2018. "Industrial Relatedness and Regional Resilience in the European Union," Papers in Evolutionary Economic Geography (PEEG) 1822, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2018.
    • Handle: RePEc:egu:wpaper:1822
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    More about this item

    Keywords

    Technological Relatedness; Vertical Relatedness; Regional Resilience; European Union;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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