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(Un)Related Variety and Employment Growth at the Sub-Regional Level

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  • Matthias Firgo
  • Peter Mayerhofer

Abstract

Empirical results on the link between growth and diversity in (un)related industries proved to be highly dependent on the specific regional and temporal context. Making use of highly disaggregated employment data at the sub-regional level, we find that higher employment growth in Austria is mainly linked to unrelated variety. However, in-depth analyses by sectors and regional regimes illustrate substantial heterogeneity in the results, mainly driven by the service sector and by a large number of relatively small regions. Thus, our results argue against structural policy conclusions based on assessments across all economic sectors or different types of regions.

Suggested Citation

  • Matthias Firgo & Peter Mayerhofer, 2016. "(Un)Related Variety and Employment Growth at the Sub-Regional Level," Papers in Evolutionary Economic Geography (PEEG) 1604, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2016.
  • Handle: RePEc:egu:wpaper:1604
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    Cited by:

    1. Mikhail Martynovich & Teis Hansen & Karl-Johan Lundquist, 2020. "Can Foundational Economy Save Regions In Crisis?," Papers in Evolutionary Economic Geography (PEEG) 2061, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2020.
    2. Kadri Kuusk & Mikhail Martynovich, 2018. "What kind of related variety for long-term regional growth?," Papers in Evolutionary Economic Geography (PEEG) 1834, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2018.
    3. Ejdemo, Thomas & Örtqvist, Daniel, 2020. "Related variety as a driver of regional innovation and entrepreneurship: A moderated and mediated model with non-linear effects," Research Policy, Elsevier, vol. 49(7).
    4. Diego D'Adda & Donato Iacobucci & Roberto Palloni, 2020. "Relatedness in the implementation of Smart Specialisation Strategy: a first empirical assessment," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 405-425, June.
    5. Jürgen Janger & Matthias Firgo & Kathrin Hofmann & Agnes Kügler & Anna Strauss & Gerhard Streicher & Hans Pechar, 2017. "Wirtschaftliche und gesellschaftliche Effekte von Universitäten," WIFO Studies, WIFO, number 60794, December.
    6. Matthias Firgo & Agnes Kügler, 2018. "Hochschulen als Produktivitätsfaktor ihrer Standortregionen," WIFO Monatsberichte (monthly reports), WIFO, vol. 91(8), pages 575-583, August.
    7. Peter Mayerhofer, 2017. "Oberösterreichs Wirtschaft im europäischen Konkurrenzumfeld. Zweiter Bericht zur internationalen Wettbewerbsfähigkeit, 2017," WIFO Studies, WIFO, number 60592, December.
    8. Klaus Friesenbichler & Werner Hölzl, 2020. "High-growth firm shares in Austrian regions: the role of economic structures," Regional Studies, Taylor & Francis Journals, vol. 54(11), pages 1585-1595, November.
    9. Matthias Firgo & Peter Mayerhofer, 2017. "Wachstumsbremse Tertiärisierung? Evidenz für die europäischen Regionen," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(11), pages 843-854, November.
    10. Grillitsch, Markus & Martynovich, Mikhail & Dahl Fitjar, Rune & Haus-Reve, Silje, 2019. "Why bother about region-specific growth patterns and how to identify them?," Papers in Innovation Studies 2019/10, Lund University, CIRCLE - Center for Innovation Research.
    11. Zabala-Iturriagagoitia, Jon Mikel & Porto Gómez, Igone & Aguirre Larracoechea, Urko, 2020. "Technological diversification: a matter of related or unrelated varieties?," Technological Forecasting and Social Change, Elsevier, vol. 155(C).

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    More about this item

    Keywords

    related variety; specialization; knowledge spillovers; employment growth; structural policy;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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