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Skill capabilities behind the scenes: the role of occupational portfolio in regional industrial evolution

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  • Jing Chen
  • Xiaojing Li
  • Xiaoqi Zhou
  • Rongjun Ao

Abstract

An increasing number of studies confirm that regional diversification is path dependent, with new industries building on pre-existing ones. However, these studies typically overlook the role of skill capabilities and the interactions between skills and industries. In this research, based on the concept of industry–occupation cross-relatedness, the influence of skill capabilities on industrial diversification across Chinese regions was investigated. The findings indicate that regions can diversify into skill-related activities following a skill path-dependent process. Furthermore, a theoretical framework integrating industry–occupation cross-relatedness and economic complexity was introduced that enabled the adoption of various diversification strategies based on regional skill capabilities.

Suggested Citation

  • Jing Chen & Xiaojing Li & Xiaoqi Zhou & Rongjun Ao, 2025. "Skill capabilities behind the scenes: the role of occupational portfolio in regional industrial evolution," Regional Studies, Taylor & Francis Journals, vol. 59(1), pages 2416535-241, December.
    • Handle: RePEc:taf:regstd:v:59:y:2025:i:1:p:2416535
    DOI: 10.1080/00343404.2024.2416535
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