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The impact of related variety on regional employment growth in Finland 1993-2006: high-tech versus medium/low-tech

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Listed:
  • Matté Hartog
  • Ron Boschma
  • Markku 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.

Suggested Citation

  • Matté Hartog & Ron Boschma & Markku Sotarauta, 2012. "The impact of related variety on regional employment growth in Finland 1993-2006: high-tech versus medium/low-tech," Papers in Evolutionary Economic Geography (PEEG) 1205, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2012.
    • Handle: RePEc:egu:wpaper:1205
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    References listed on IDEAS

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    1. Raffaele Paci & Stefano Usai, 2000. "Technological Enclaves and Industrial Districts: An Analysis of the Regional Distribution of Innovative Activity in Europe," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 97-114.
    2. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
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    6. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, July.
    7. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
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    11. Ron Boschma & Asier Minondo & Mikel Navarro, 2012. "Related variety and regional growth in Spain," Papers in Regional Science, Wiley Blackwell, vol. 91(2), pages 241-256, June.
    12. Bowsher, Clive G., 2002. "On testing overidentifying restrictions in dynamic panel data models," Economics Letters, Elsevier, vol. 77(2), pages 211-220, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    evolutionary economic geography; Finland; high-tech; regional employment growth; related variety;
    All these keywords.

    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

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