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The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation

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  • Valentina Meliciani
  • Maria Savona

Abstract

The article accounts for the determinants of sectoral specialisation in business services (BS) across the EU-27 regions as determined by: (i) agglomeration economies (ii) the region-specific structure of intermediate linkages (iii) technological innovation and knowledge intensity and (iv) the presence of these factors in neighbouring regions. The empirical analysis draws upon the REGIO panel database over the period 1999–2003. By estimating a Spatial Durbin Model, we find significant spatial effects in explaining regional specialisation in BS. Our findings show that, besides urbanisation economies, the spatial structure of intermediate sectoral linkages and innovation, in particular Information and Communication Technologies (ICTs), are important determinants of specialisation in BS. The article contributes to the debate on the global versus local determinants of regional specialisation in BS by restating the importance of the regional sectoral structure besides that of urbanisation. We draw policy implications by rejecting the ‘footloose hypothesis’ for BS.

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  • Valentina Meliciani & Maria Savona, 2015. "The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation," Journal of Economic Geography, Oxford University Press, vol. 15(2), pages 387-416.
  • Handle: RePEc:oup:jecgeo:v:15:y:2015:i:2:p:387-416.
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    Cited by:

    1. MORIKAWA Masayuki, 2016. "Location and Productivity of Knowledge- and Information-intensive Business Services," Discussion papers 16067, Research Institute of Economy, Trade and Industry (RIETI).
    2. Tommaso Ciarli & Valentina Meliciani & Maria Savona, 2012. "Knowledge Dynamics, Structural Change And The Geography Of Business Services," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 445-467, July.
    3. repec:bla:devchg:v:49:y:2018:i:6:p:1495-1525 is not listed on IDEAS
    4. Marco Capasso & Elena Cefis & Koen Frenken, 2016. "Spatial Differentiation in Industrial Dynamics. The Case of the Netherlands (1994–2005)," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 107(3), pages 316-330, July.
    5. Francesca Mameli & Simona Iammarino & Ron Boschma, 2012. "Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries," Papers in Evolutionary Economic Geography (PEEG) 1203, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2012.
    6. Filippo Bontadini & Rinaldo Evangelista & Valentina Meliciani & Maria Savona, 2019. "Integration in Global Value Chains and Employment in Europe," SPRU Working Paper Series 2019-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    7. Thomas Brenner & Marco Capasso & Matthias Duschl & Koen Frenken & Tania Treibich, 2018. "Causal relations between knowledge-intensive business services and regional employment growth," Regional Studies, Taylor & Francis Journals, vol. 52(2), pages 172-183, February.
    8. Botta, Alberto, 2018. "The long-run effects of portfolio capital inflow booms in developing countries: permanent structural hangovers after short-term financial euphoria," Desarrollo Productivo 221, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Andrea Ascani & Simona Iammarino, 2018. "Multinational enterprises, service outsourcing and regional structural change," Cambridge Journal of Economics, Oxford University Press, vol. 42(6), pages 1585-1611.
    10. Nicoletta Corrocher & Lucia Cusmano, 2014. "The 'KIBS Engine' of Regional Innovation Systems: Empirical Evidence from European Regions," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1212-1226, July.
    11. valter di Giacinto & Giacinto Micucci & Alessandro Tosoni, 2018. "Knowledge intensive business services and urban areas: an analysis of localization and productivity on Italian data," Questioni di Economia e Finanza (Occasional Papers) 443, Bank of Italy, Economic Research and International Relations Area.
    12. repec:gam:jsusta:v:10:y:2018:i:8:p:2624-:d:160075 is not listed on IDEAS
    13. Rosa Jordá-Borrell & Francisca Ruiz-Rodríguez & Reyes González-Relaño, 2015. "Factors and taxonomy of technology purchase (TP) by internationalized innovative companies in peripheral European regions," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 139-174, November.

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    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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