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On firms’ product space evolution: the role of firm and local product relatedness

Author

Listed:
  • Alessia Lo Turco
  • Daniela Maggioni

Abstract

We explore the role of firm- and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms’ product space evolution is characterised by strong cognitive path dependence that, however, is relaxed by firm heterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly linked to the evolution of their industrial output, is mainly affected by firm’s internal product- specific resources. On the contrary, product innovations in Western advanced regions hinge relatively more on the availability of local technological- related competencies.

Suggested Citation

  • Alessia Lo Turco & Daniela Maggioni, 2016. "On firms’ product space evolution: the role of firm and local product relatedness," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 975-1006.
    • Handle: RePEc:oup:jecgeo:v:16:y:2016:i:5:p:975-1006.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbv024
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    Cited by:

    1. Burhan Can Karahasan, 2023. "Spatial distribution of new firms and firm‐level innovation: Evidence from Turkey," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(9), pages 2156-2181, December.
    2. Desmarchelier, Benoît & Regis, Paulo José & Salike, Nimesh, 2018. "Product space and the development of nations: A model of product diversification," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 34-51.
    3. Cyrielle Gaglio, 2015. "Measuring Country Competitiveness: A Survey of Exporting-based Indexes," GREDEG Working Papers 2015-42, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Yu Chen & Haoming Shi & Jun Ma & Victor Shi, 2020. "The Spatial Spillover Effect in Hi-Tech Industries: Empirical Evidence from China," Sustainability, MDPI, vol. 12(4), pages 1-16, February.
    5. Cheng, Ruiqi & Yuan, Peng & Jiang, Gongxiong, 2023. "Growth, agglomeration externalities, and survival: Evidence from Chinese manufacturing start-ups," Journal of Business Research, Elsevier, vol. 154(C).
    6. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    7. Shengjun Zhu & Canfei He & Qian Luo, 2019. "Good neighbors, bad neighbors: local knowledge spillovers, regional institutions and firm performance in China," Small Business Economics, Springer, vol. 52(3), pages 617-632, March.
    8. Xiao, Shengpeng & Lin, Changqing & Wu, Kedong, 2025. "Product relatedness and firm productivity," International Review of Financial Analysis, Elsevier, vol. 97(C).
    9. Shengjun Zhu & Canfei He & Xinming Xia, 2019. "Geography of productivity: evidence from China’s manufacturing industries," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 141-168, February.
    10. Timo Kleiner‐Schäfer & Ingo Liefner, 2021. "Innovation success in an emerging economy: A comparison of R&D‐oriented companies in Turkey," Growth and Change, Wiley Blackwell, vol. 52(2), pages 963-989, June.
    11. Marte C.W. Solheim & Ron Boschma & Sverre Herstad, 2018. "Related variety, unrelated variety and the novelty content of firm innovation in urban and non-urban locations," Papers in Evolutionary Economic Geography (PEEG) 1836, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2018.
    12. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    13. repec:spo:wpmain:info:hdl:2441/1f59r6ssre9eiqb2rso9ui50m2 is not listed on IDEAS
    14. Jason Deegan & Tom Broekel & Silje Haus-Reve & Rune Dahl Fitjar, 2024. "How regions diversify into new jobs: from related industries or related occupations?," Regional Studies, Taylor & Francis Journals, vol. 58(11), pages 1965-1980, November.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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