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On firms' product space evolution: the role of firm and local product relatedness

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  • Alessia LO TURCO

    () (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

  • Daniela MAGGIONI

    () (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)

Abstract

We explore the role of firm and local product-specific capabilities in fostering the introduction of new products in the Turkish manufacturing. Firms' product space evolution is characterised by strong cognitive path dependence which, however, is relaxed by firm heterogeneity in terms of size, efficiency and international exposure. The introduction of new products in laggard Eastern regions, which is importantly related to the evolution of their industrial output, is mainly affected by firm internal product specific resources. On the contrary, product innovations in Western advanced regions hinge relatively more on the availability of suitable local competencies.

Suggested Citation

  • Alessia LO TURCO & Daniela MAGGIONI, 2014. "On firms' product space evolution: the role of firm and local product relatedness," Working Papers 402, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  • Handle: RePEc:anc:wpaper:402
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    1. repec:eee:jeborg:v:145:y:2018:i:c:p:34-51 is not listed on IDEAS
    2. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    3. Desmarchelier, Benoît & Regis, Paulo José & Salike, Nimesh, 2018. "Product space and the development of nations: A model of product diversification," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 34-51.

    More about this item

    Keywords

    Firm heterogeneity; Product Innovation;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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