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

Author Info

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

Abstract

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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Find related papers by JEL classification:
  • D62 - Microeconomics - - Welfare Economics - - - Externalities
  • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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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Cited by:

  1. Silvia Rita Sedita & Ivan De Noni & Luciano Pilotti, 2014. "How do related variety and differentiated knowledge bases influence the resilience of local production systems?," "Marco Fanno" Working Papers 0180, Dipartimento di Scienze Economiche "Marco Fanno".
  2. Francisco Rebelo & Ester Gomes da Silva, 2013. "Export variety, technological content and economic performance: The case of Portugal," FEP Working Papers 491, Universidade do Porto, Faculdade de Economia do Porto.
  3. Frank Van Oort, 2013. "Agglomeration Economics Beyond the Specialisation-Diversity Controversy," Papers in Evolutionary Economic Geography (PEEG) 1313, Utrecht University, Section of Economic Geography, revised Aug 2013.
  4. Bart Los & Carolina Castaldi & Koen Frenken, 2013. "Related Variety, Unrelated Variety and Technological Breakthroughs: An Analysis of U.S. State-Level Patenting," ERSA conference papers ersa13p524, European Regional Science Association.
  5. Sofia Wixe & Martin Andersson, 2013. "Which Types of Relatedness Matter in Regional Growth? -industry, occupation and education," Papers in Evolutionary Economic Geography (PEEG) 1326, Utrecht University, Section of Economic Geography, revised Dec 2013.
  6. Jürgen Essletzbichler, 2013. "Relatedness, industrial branching and technological cohesion in U.S. metropolitan areas," Papers in Evolutionary Economic Geography (PEEG) 1307, Utrecht University, Section of Economic Geography, revised May 2013.
  7. Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2013. "The dynamics of knowledge-intensive sectors' knowledge base: Evidence from Biotechnology and Telecommunications," Working Papers hal-00991397, HAL.
  8. Wixe, Sofia, 2014. "Firm Knowledge, Neighborhood Diversity and Innovation," Working Paper Series in Economics and Institutions of Innovation 360, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  9. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Section of Economic Geography, revised Dec 2013.
  10. Otto, Anne & Weyh, Antje, 2014. "Industry space and skill-relatedness of economic activities : comparative case studies of three eastern German automotive regions," IAB-Forschungsbericht 201408, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  11. repec:dgr:tuecis:wpaper:1303 is not listed on IDEAS
  12. Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2014. "The dynamics of knowledge-intensive sectors' knowledge base: Evidence from Biotechnology and Telecommunications," Post-Print hal-01070557, HAL.

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