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The Impact of Related Variety on Regional Employment Growth in Finland 1993--2006: High-Tech versus Medium/Low-Tech

  • M. Hartog
  • R. Boschma
  • M. Sotarauta

This paper investigates the impact of related variety on regional employment growth in Finland between 1993 and 2006 by means of a dynamic panel regression model. We find that related variety in general has no impact on growth. Instead, after separating related variety among low-and-medium-tech sectors from related variety among high-tech sectors, we find that only the latter affects regional growth. Hence, we find evidence that the effect of related variety on regional employment growth is conditioned by the technological intensity of the local sectors involved.

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File URL: http://hdl.handle.net/10.1080/13662716.2012.718874
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Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

Volume (Year): 19 (2012)
Issue (Month): 6 (August)
Pages: 459-476

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Handle: RePEc:taf:indinn:v:19:y:2012:i:6:p:459-476
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References listed on IDEAS
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  1. Matthias Buerger & Uwe Cantner, 2011. "The regional dimension of sectoral innovativeness: An empirical investigation of two specialized suppliers and two science‐based industries," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 373-393, 06.
  2. Raffaele Paci & Stefano Usai, 1998. "Technological enclaves and industrial districts: An analysis of the regional distribution of innovative activity in Europe," ERSA conference papers ersa98p461, European Regional Science Association.
  3. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  4. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, 07.
  5. Piergiuseppe Morone, 2002. "The Two Faces of Knowledge Diffusion: the Chilean Case," Labor and Demography 0211002, EconWPA.
  6. Francesco Quatraro, 2010. "Knowledge Coherence, Variety and economic Growth: Manufacturing Evidence from Italian Regions," Post-Print halshs-00727612, HAL.
  7. Ron Boschma & Asier Minondo & Mikel Navarro, 2010. "Related variety and regional growth in Spain," Papers in Evolutionary Economic Geography (PEEG) 1012, Utrecht University, Section of Economic Geography, revised Oct 2010.
  8. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 127-138, Spring.
  9. Quatraro, Francesco, 2010. "Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions," Research Policy, Elsevier, vol. 39(10), pages 1289-1302, December.
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