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Promoting regional growth and innovation: relatedness, revealed comparative advantage and the product space

Author

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  • Gloria Cicerone
  • Philip McCann
  • Viktor A. Venhorst

Abstract

We adapt the product-space methodological approach of Hausmann and Klinger to the case of Italian provinces and regions in order to examine the extent to which the network connectedness and centrality of a provinceÕs exports is related to its economic performance. We construct a new Product Space Position (PSP) index which retains many of the Hausmann-Klinger features but which is also much better suited to handling regional and provincial data. We also compare PSP performance with two other export composition indices. A better positioning in the export-network product space is indeed associated with a better local economic outcomes.

Suggested Citation

  • Gloria Cicerone & Philip McCann & Viktor A. Venhorst, 2017. "Promoting regional growth and innovation: relatedness, revealed comparative advantage and the product space," Papers in Evolutionary Economic Geography (PEEG) 1714, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2017.
  • Handle: RePEc:egu:wpaper:1714
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    File URL: http://econ.geo.uu.nl/peeg/peeg1714.pdf
    File Function: Version June 2017
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    References listed on IDEAS

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    1. 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.
    2. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
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    Cited by:

    1. Benedikt S. L. Fritz & Robert A. Manduca, 2019. "The Economic Complexity of US Metropolitan Areas," Papers 1901.08112, arXiv.org.
    2. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.

    More about this item

    Keywords

    relatedness; revealed comparative advantage; product space; regional development;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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