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Which Types of Relatedness Matter in Regional Growth? -industry, occupation and education

  • Sofia Wixe
  • Martin Andersson

This paper provides a conceptual discussion of relatedness, which suggests a focus on individuals as a complement to firms and industries. The empirical relevance of the main arguments are tested by estimating the effects of related and unrelated variety in education and occupation among employees, as well as in industries, on regional growth. We show that for regional productivity growth, occupational and educational related variety matter over and above industry relatedness. This supports the conceptual discussion put forward. The potential of productive interactions between employees in a region is thus greater when there is related variety in their ‘knowledge base’. We also find that related variety in industries is positive for employment growth but negative for productivity growth.

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File URL: http://econ.geo.uu.nl/peeg/peeg1326.pdf
File Function: Version December 2013
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Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 1326.

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Length: 31 pages
Date of creation: Dec 2013
Date of revision: Dec 2013
Handle: RePEc:egu:wpaper:1326
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