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Related Variety and Employment Growth in Italy: Testing Sectoral Heterogeneity through Pavitt’s Taxonomy

Author

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  • Claudio Di Berardino
  • Gianni Onesti
  • Adriana Carolina Pinate

Abstract

The present study aims to provide additional evidence for the role and importance of relatedvariety in manufacturing in fostering employment growth among Italian provinces (nuts3) over the period 2001-2011. The focus is on assessing the sectoral specificities by adoptingPavitt’s taxonomy. Concerning potential complementarities between manufacturing industries,the results indicate that the positive influence of externalities on growth dynamics are not necessarilydue to the variety among high-tech sectors. Specifically, we find that the effects onemployment are influenced by related variety among specialised suppliers and scale intensivesectors, in which their success in the market is not primarily related to R&D.The findings arerobust once we control for some important variables able to capture the productive structureand the innovation (trademarks) of Italian regions.

Suggested Citation

  • Claudio Di Berardino & Gianni Onesti & Adriana Carolina Pinate, 2020. "Related Variety and Employment Growth in Italy: Testing Sectoral Heterogeneity through Pavitt’s Taxonomy," L'industria, Società editrice il Mulino, issue 2, pages 291-234.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/97566:y:2020:i:2:p:291-234
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