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Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies

Author

Listed:
  • Frank Neffke

    ()

  • Martin Henning

    ()

Abstract

This article studies path dependent regional structural change using a quantitative framework. Based on an inter-relatedness indicator, the degree to which local skill-bases exist and force local economies onto a path-dependent development trajectory is studied. The main question is into which local industries new plants enter, while distinguishing between the plants of entrepreneurs and firms. Using a dataset on Swedish individuals and municipalities, it is found that entrepreneurs tend to reinforce established local industrial specializations, whereas new plants of already existing firms do less so. Moreover, outside actors deepen local economy's core specialization more than do local actors.

Suggested Citation

  • Frank Neffke & Martin Henning, 2010. "Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies," Papers in Evolutionary Economic Geography (PEEG) 1005, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2010.
  • Handle: RePEc:egu:wpaper:1005
    as

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    File URL: http://econ.geo.uu.nl/peeg/peeg1005.pdf
    File Function: Version April 2010
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    More about this item

    Keywords

    structural change; economic geography; path dependence; entrepreneurship; skill-relatedness; human capital;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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