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Specialization and diversity as drivers of economic growth: Evidence from HighTech industries

Author

Listed:
  • Simonen, Jaakko
  • Svento, Rauli
  • Juutinen, Artti

Abstract

This paper contributes to the literature of regional economics by concerning the linkages between regional industrial structure and economic growth. In order to shed light on this debatable issue, we study the role of the high technology sector, especially its industrial structure in regional economic growth. Using data from the Finnish regions during 1994 to 2008, we find diminishing marginal returns to high technology diversity with respect to regional growth, once we control for other determinants of growth. Through this paper we hope to give our contribution to one of the central themes of current EU regional policy discussion, namely smart specialization.

Suggested Citation

Handle: RePEc:eee:paresc:v:94:y:2015:i:2:p:229-248
DOI: 10.1111/pirs.12062
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Keywords

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JEL classification:

  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
  • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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