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Quality of government and social capital as drivers of regional diversification in Europe

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Listed:
  • Nicola Cortinovis
  • Jing Xiao
  • Ron Boschma
  • Frank G van Oort

Abstract

Industrial diversification is crucial for economies to prosper. Recent studies have shown that regional economies tend to diversify into sectors that are related to those already present in the region. However, no study yet has investigated the impact of regional institutions. The objective of the article is to analyze how formal and informal institutions influence regional diversification. Studying 118 European regions in the period 2004–2012, we find evidence that institutions, and especially bridging social capital, matter for regions to diversify into new industries. Our results suggest that regional institutions relevant for diversification in regions are predominantly informal in character rather than formal, and bridging rather than bonding.

Suggested Citation

  • Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
  • Handle: RePEc:oup:jecgeo:v:17:y:2017:i:6:p:1179-1208.
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    Cited by:

    1. Mathieu Steijn & Pierre-Alexandre Balland & Ron Boschma & David Rigby, 2019. "Technological Diversification of U.S. Cities during the Great Historical Crises," Papers in Evolutionary Economic Geography (PEEG) 1901, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2019.
    2. repec:eee:respol:v:47:y:2018:i:9:p:1700-1712 is not listed on IDEAS
    3. repec:ura:ecregj:v:1:y:2019:i:1:p:151-163 is not listed on IDEAS
    4. D'Ambrosio, Anna & Montresor, Sandro & Parrilli, Mario Davide & Quatraro, Francesco, 2017. "Migration, communities-on-the-move and international innovation networks: An empirical analysis of Spanish regions," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201701, University of Turin.
    5. repec:oup:indcch:v:27:y:2018:i:1:p:15-47. is not listed on IDEAS
    6. Wolf-Hendrik Uhlbach & Pierre-Alexandre Balland & Thomas Scherngell, 2017. "R&D Policy and Technological Trajectories of Regions: Evidence from the EU Framework Programmes," Papers in Evolutionary Economic Geography (PEEG) 1722, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    7. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Industrial Diversification in Europe: The Differentiated Role of Relatedness," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 514-549, October.
    8. Fulvio Castellacci & Davide Consoli & Artur Santoalha, 2018. "Technological Diversification in European Regions: The Role of E-skills," Working Papers on Innovation Studies 20181009, Centre for Technology, Innovation and Culture, University of Oslo.
    9. Daniel A. Brent & Katie Lorah, 2017. "The Geography of Civic Crowdfunding: Implications for Social Inequality and Donor-Project Dynamics," Departmental Working Papers 2017-09, Department of Economics, Louisiana State University.
    10. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2017. "Smart Specialization policy in the EU: Relatedness, Knowledge Complexity and Regional Diversification," Papers in Evolutionary Economic Geography (PEEG) 1717, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
    11. Artur Santoalha, 2019. "Technological Diversification and Smart Specialization: the role of cooperation," Working Papers on Innovation Studies 20190109, Centre for Technology, Innovation and Culture, University of Oslo.
    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. Luis Carvalho & Mario Vale, 2018. "Biotech by Bricolage? Agency, institutional relatedness and new path development in peripheral regions," Papers in Evolutionary Economic Geography (PEEG) 1801, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    14. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press, vol. 27(1), pages 15-47.
    15. Roberto Antonietti & Ron Boschma, 2018. "Social capital, resilience and regional diversification in Italy," Papers in Evolutionary Economic Geography (PEEG) 1804, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    16. F.C. Stam, 2018. "Enabling Creative Destruction : An Entrepreneurial Ecosystem Approach to Industrial Policy," Working Papers 18-05, Utrecht School of Economics.
    17. repec:spr:eurasi:v:9:y:2019:i:1:d:10.1007_s40821-019-00121-0 is not listed on IDEAS
    18. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 2018. "Multinational enterprises, industrial relatedness and employment in European regions," Papers in Evolutionary Economic Geography (PEEG) 1802, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.

    More about this item

    Keywords

    Regional diversification; social capital; quality of government; institutions;

    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

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