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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 author(s):
  • 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.

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File URL: http://econ.geo.uu.nl/peeg/peeg1205.pdf
File Function: Version May 2012
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Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1205.

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Length: 35 pages
Date of creation: May 2012
Date of revision: May 2012
Handle: RePEc:egu:wpaper:1205
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Keywords: evolutionary economic geography; Finland; high-tech; regional employment growth; related variety;

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Find related papers by 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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  1. Matthias Buerger & Uwe Cantner, 2011. "The regional dimension of sectoral innovativeness: An empirical investigation of two specialized suppliers and two science‐based industries," Papers in Regional Science, Wiley Blackwell, vol. 90(2), pages 373-393, 06.
  2. 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.
  3. 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, 06.
  4. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  5. Piergiuseppe Morone, 2006. "The two faces of knowledge diffusion: the Chilean case," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(1), pages 29-50.
  6. Quatraro, Francesco, 2010. "Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions," Research Policy, Elsevier, vol. 39(10), pages 1289-1302, December.
  7. Bowsher, Clive G., 2002. "On testing overidentifying restrictions in dynamic panel data models," Economics Letters, Elsevier, vol. 77(2), pages 211-220, October.
  8. John M. Quigley, 1998. "Urban Diversity and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 127-138, Spring.
  9. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, 07.
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