IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v41y2007i5p685-697.html
   My bibliography  Save this article

Related Variety, Unrelated Variety and Regional Economic Growth

Author

Listed:
  • Koen Frenken
  • Frank Van Oort
  • Thijs Verburg

Abstract

Frenken K., Van Oort F. and Verburg T. (2007) Related variety, unrelated variety and regional economic growth, Regional Studies 41, 685-697. In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. It is argued that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). A methodology based on entropy measures is introduced to compute related variety and unrelated variety. Using data at the NUTS 3 level in the Netherlands for 1996-2002, it was found that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth can be explained by traditional determinants including investments and research and development expenditures. Implications for regional policy follow. Frenken K., Van Oort F. et Verburg T. (2007) La variete connexe, la variete sans rapport et la croissance economique regionale., Regional Studies 41, 685-697. Dans la theorie economique, on peut distinguer entre la variete comme la source des retombees de connaissance regionales, dites les effets externes de Jacob, et la variete comme un portefeuille qui protege la region des chocs externes. On affirme que l'on peut mieux mesurer les effets externes de Jacob a partir de la notion de variete connexe (au sein des secteurs), tandis que l'argument qui prone plutot la notion de portefeuille est mieux saisi par la notion de variete sans rapport (entre les secteurs). On presente une methodologie fondee sur des mesures d'entropie afin d'estimer la variete connexe et la variete sans rapport. A partir des donnees au niveau NUTS 3 aupres des Pays-Bas pour la periode de 1996 a 2002, on trouve que les effets externes de Jacob augmentent la croissance de l'emploi, alors que la variete sans rapport attenue la croissance du chomage. La croissance de la productivite s'explique par des determinants traditionnels, y compris l'investissement et les depenses de recherche-developpement. Il s'ensuit les implications pour la politique regionale. Variete Croissance; Effets externes de Jacob; Economies d'agglomeration; Retombees Entropie Frenken K., Van Oort F. und Verburg T. (2007) Zusammenhangende Vielfalt, nicht zusammenhangende Vielfalt und regionales Wirtschaftswachstum, Regional Studies 41, 685-697. In der Wirtschaftstheorie unterscheidet man zwischen der Vielfalt als Quelle regionaler Wissensubertragung (den so genannten Jacobs-Externalitaten) und der Vielfalt als Portfolio zum Schutz einer Region vor externen Erschutterungen. Wir stellen die These auf, dass sich die Jacobs-Externalitaten am besten anhand der zusammenhangenden Vielfalt (innerhalb von Sektoren) messen lassen, wahrend sich das Portfolio-Argument besser durch nicht zusammenhangende Vielfalt (zwischen verschiedenen Sektoren) darstellen lasst. Mit Hilfe einer Methodologie auf der Grundlage entropischer Messungen ermitteln wir zusammenhangende Vielfalt und nicht zusammenhangende Vielfalt. Anhand von Daten auf dem NUTS 3-Niveau in den Niederlanden fur den Zeitraum von 1996 bis 2002 stellen wir fest, dass die Jacobs-Externalitaten zu einem Anstieg des Beschaftigungsniveaus fuhren, wahrend nicht zusammenhangende Vielfalt den Anstieg der Arbeitslosigkeit dampft. Der Anstieg der Produktivitat lasst sich durch traditionelle Determinanten wie Investitionen und Ausgaben fur F&E erklaren. Im Anschluss werden die Konsequenzen fur die Regionalpolitik beschrieben. Vielfalt; Wachstum; Jacobs-Externalitaten; Agglomerationswirtschaften; U¨bertragung; Entropie; Frenken K., Van Oort F. y Verburg T. (2007) Variedad relacionada, variedad no relacionada y el crecimiento economico regional, Regional Studies 41, 685-697. En la teoria economica, podemos distinguir entre la variedad como una fuente de desbordamientos de conocimiento regionales, llamados externalidades Jacobs, y la variedad como una cartera que protege una region de choques externos. Sostenemos que las externalidades Jacobs se miden mejor segun la variedad relacionada (dentro de los sectores), mientras que el argumento de la cartera se capta mejor con una variedad no relacionada (entre sectores). Para calcular la variedad relacionada y la variedad no relacionada, introducimos una metodologia basada en las medidas de entropia. Usando datos en el nivel NUTS 3 en los Paises Bajos para el periodo 1996-2002, observamos que las externalidades Jacobs aumentan el crecimiento de empleo mientras que la variedad no relacionada desestimula el crecimiento de desempleo. El crecimiento de productividad puede explicarse mediante determinantes tradicionales incluyendo las inversiones y los gastos en I + D. Tambien explicamos las implicaciones para la politica regional. Variedad; Crecimiento; Externalidades Jacobs; Economias de aglomeracion; Desbordamiento; Entropia

Suggested Citation

  • Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
  • Handle: RePEc:taf:regstd:v:41:y:2007:i:5:p:685-697
    DOI: 10.1080/00343400601120296
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343400601120296
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343400601120296?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:hal:spmain:info:hdl:2441/1931 is not listed on IDEAS
    2. Theodore Tsekeris & Klimis Vogiatzoglou, 2014. "Public infrastructure investments and regional specialization: empirical evidence from Greece," Regional Science Policy & Practice, Wiley Blackwell, vol. 6(3), pages 265-289, August.
    3. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    4. Gintarė Morkutė & Sierdjan Koster & Jouke Van Dijk, 2017. "Employment growth and inter-industry job reallocation: spatial patterns and relatedness," Regional Studies, Taylor & Francis Journals, vol. 51(6), pages 958-971, June.
    5. Helinä Melkas & Tuomo Uotila & Tomi Tura, 2016. "Policies of related variety in practice: the case Innovation Session Method," European Planning Studies, Taylor & Francis Journals, vol. 24(3), pages 489-510, March.
    6. Lundquist, Karl-Johan & Olander, Lars-Olof & Svensson Henning, Martin, 2008. "Creative destruction and economic welfare in Swedish regions: spatial dimensions of structural change, growth and employment," SRE-Discussion Papers 2008/03, WU Vienna University of Economics and Business.
    7. Jung-Hun Yang & Kwang-Woo Nam, 2022. "Modelling the Relationship of Infrastructure and Externalities Using Urban Scaling," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    8. Eva Berggren & Åsa Lindholm Dahlstrand, 2009. "Creating an Entrepreneurial Region: Two Waves of Academic Spin-offs from Halmstad University," European Planning Studies, Taylor & Francis Journals, vol. 17(8), pages 1171-1189, February.
    9. Jean-Luc Gaffard & Michel Quéré, 2005. "Délocalisations : simple affaire de concurrence ou problème de politique économique ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 94(3), pages 193-210.
    10. Joeri Gorter & Suzanne Kok, 2009. "Agglomeration economies in the Netherlands," CPB Discussion Paper 124, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Asheim, Bjørn & M. Bugge, Markus & Coenen, Lars & Herstad, Sverre, 2013. "What Does Evolutionary Economic Geography Bring To The Policy Table? Reconceptualising regional innovation systems," Papers in Innovation Studies 2013/5, Lund University, CIRCLE - Centre for Innovation Research.
    12. Guillaume Daudin & Jean-Luc Gaffard & Sandrine Levasseur & Catherine Mathieu & Georges Pujals & Michel Quéré & Henri Sterdyniak, 2005. "Competition from emerging countries, international relocation and their impacts on employment," SciencePo Working papers Main hal-01065588, HAL.
    13. Karl-Johan Lundquist & Lars-Olof Olander & Martin Svensson Henning, 2008. "Producer services: growth and roles in long-term economic development," The Service Industries Journal, Taylor & Francis Journals, vol. 28(4), pages 463-477, May.
    14. repec:hal:wpspec:info:hdl:2441/1931 is not listed on IDEAS
    15. Salazar, Xavier & Atienza, Miguel, 2010. "Las empresas en Santa Cruz, ¿continúan en una estructura monocéntrica?," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 13, pages 59-90.
    16. Backman, Mikaela & Kohlhase, Janet, 2013. "The Influence of Diversity on the Formation, Survival and Growth of New Firms," Working Paper Series in Economics and Institutions of Innovation 337, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    17. repec:spo:wpecon:info:hdl:2441/3383 is not listed on IDEAS
    18. Alessandro Rosiello & Luigi Orsenigo, 2008. "A Critical Assessment of Regional Innovation Policy in Pharmaceutical Biotechnology," European Planning Studies, Taylor & Francis Journals, vol. 16(3), pages 337-357, January.
    19. repec:spo:wpmain:info:hdl:2441/1931 is not listed on IDEAS
    20. repec:spo:wpmain:info:hdl:2441/6488 is not listed on IDEAS
    21. Belmartino, Andrea, 2016. "Diversidad industrial en las provincias argentinas y factores económicos asociados (1996-2012)," Nülan. Deposited Documents 2604, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    22. Sierdjan Koster, 2011. "Individual foundings and organizational foundings: their effect on employment growth in The Netherlands," Small Business Economics, Springer, vol. 36(4), pages 485-501, May.
    23. repec:hal:spmain:info:hdl:2441/6488 is not listed on IDEAS
    24. repec:spo:wpecon:info:hdl:2441/1931 is not listed on IDEAS
    25. Amanda Mackloet, 2006. "Locational Dynamics in an Era of Global Economic Change: Is the Port of Rotterdam Up to the Challenge?," ERSA conference papers ersa06p337, European Regional Science Association.
    26. Paul Bishop & Peter Gripaios, 2007. "Explaining Spatial Patterns of Industrial Diversity: An Analysis of Sub-regions in Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 44(9), pages 1739-1757, August.
    27. Giulio Cainelli & Eleonora Di Maria & Roberto Ganau, 2011. "Agglomeration, related-variety and internationalisation. Does a relationship exist?," Openloc Working Papers 1114, Public policies and local development.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:41:y:2007:i:5:p:685-697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.