IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/2302.html
   My bibliography  Save this paper

The future geography of industries and occupations

Author

Listed:
  • Milene Tessarin
  • Deyu Li
  • Sergio Petralia
  • Ron Boschma

Abstract

In this report we evaluate the opportunities for regional diversification in Europe over the last decade. We use microdata from the European Labour Force Survey to empirically test the entry and exit of occupational specializations at the regional level. Our results show that NUTS 2 regions are more likely to diversify into new occupations that are related to their existing local labour markets. So, the new opportunities for diversification are path-dependent, that is, they depend on the previous (occupational) production structure of the regions. Relatedness is especially important for diversifying toward complex occupations, thus increasing the potential economic benefits of the regions. However, there are significant regional heterogeneities in this related diversification process. Relatedness is positively associated with occupational specialization, but it loses strength as GDP per capita increases among European regions. Finally, we point out some policy orientations that can guide the paths of occupational diversification for European regions.

Suggested Citation

  • Milene Tessarin & Deyu Li & Sergio Petralia & Ron Boschma, 2023. "The future geography of industries and occupations," Papers in Evolutionary Economic Geography (PEEG) 2302, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2023.
    • Handle: RePEc:egu:wpaper:2302
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg2302.pdf
    File Function: Version January 2023
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Cesar A. Hidalgo & Ricardo Hausmann, 2009. "The Building Blocks of Economic Complexity," Papers 0909.3890, arXiv.org.
    3. Antonelli, Cristiano & Crespi, Francesco & Quatraro, Francesco, 2022. "Knowledge complexity and the mechanisms of knowledge generation and exploitation: The European evidence," Research Policy, Elsevier, vol. 51(8).
    4. Ernest Miguelez & Rosina Moreno, 2018. "Relatedness, external linkages and regional innovation in Europe," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 688-701, May.
    5. Rachata Muneepeerakul & José Lobo & Shade T Shutters & Andrés Goméz-Liévano & Murad R Qubbaj, 2013. "Urban Economies and Occupation Space: Can They Get “There” from “Here”?," PLOS ONE, Public Library of Science, vol. 8(9), pages 1-8, September.
    6. Petralia, Sergio & Balland, Pierre-Alexandre & Morrison, Andrea, 2017. "Climbing the ladder of technological development," Research Policy, Elsevier, vol. 46(5), pages 956-969.
    7. Daron Acemoglu & Pascual Restrepo, 2018. "Artificial Intelligence, Automation, and Work," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 197-236, National Bureau of Economic Research, Inc.
    8. Rune Dahl Fitjar & Bram Timmermans, 2017. "Regional skill relatedness: towards a new measure of regional related diversification," European Planning Studies, Taylor & Francis Journals, vol. 25(3), pages 516-538, March.
    9. Mealy, Penny & Teytelboym, Alexander, 2022. "Economic complexity and the green economy," Research Policy, Elsevier, vol. 51(8).
    10. Pierre-Alexandre Balland & Ron Boschma, 2021. "Complementary interregional linkages and Smart Specialisation: an empirical study on European regions," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1059-1070, June.
    11. Coniglio, Nicola D. & Vurchio, Davide & Cantore, Nicola & Clara, Michele, 2021. "On the evolution of comparative advantage: Path-dependent versus path-defying changes," Journal of International Economics, Elsevier, vol. 133(C).
    12. Teresa Farinha & Pierre-Alexandre Balland & Andrea Morrison & Ron Boschma, 2019. "What drives the geography of jobs in the US? Unpacking relatedness," Industry and Innovation, Taylor & Francis Journals, vol. 26(9), pages 988-1022, October.
    13. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "Reprint of The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(8).
    14. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    15. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    16. Milene Simone Tessarin & Carlos Roberto Azzoni, 2022. "Innovation and competitiveness: the regional dimension," Papers in Evolutionary Economic Geography (PEEG) 2227, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2022.
    17. Balland, Pierre-Alexandre & Broekel, Tom & Diodato, Dario & Giuliani, Elisa & Hausmann, Ricardo & O'Clery, Neave & Rigby, David, 2022. "The new paradigm of economic complexity," Research Policy, Elsevier, vol. 51(3).
    18. Nicola Cortinovis & Jing Xiao & Ron Boschma & Frank G van Oort, 2017. "Quality of government and social capital as drivers of regional diversification in Europe," Journal of Economic Geography, Oxford University Press, vol. 17(6), pages 1179-1208.
    19. Elvira Uyarra & Chiara Marzocchi & Jens Sorvik, 2018. "How outward looking is smart specialisation? Rationales, drivers and barriers," European Planning Studies, Taylor & Francis Journals, vol. 26(12), pages 2344-2363, December.
    20. Mewes, Lars & Broekel, Tom, 2022. "Technological complexity and economic growth of regions," Research Policy, Elsevier, vol. 51(8).
    21. Frank Neffke & Matté Hartog & Ron Boschma & Martin Henning, 2018. "Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification," Economic Geography, Taylor & Francis Journals, vol. 94(1), pages 23-48, January.
    22. Daron Acemoglu & Pascual Restrepo, 2018. "Artificial Intelligence, Automation and Work," Boston University - Department of Economics - Working Papers Series dp-298, Boston University - Department of Economics.
    23. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    24. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    25. Diego D’Adda & Enrico Guzzini & Donato Iacobucci & Roberto Palloni, 2019. "Is Smart Specialisation Strategy coherent with regional innovative capabilities?," Regional Studies, Taylor & Francis Journals, vol. 53(7), pages 1004-1016, July.
    26. Ron Boschma, 2022. "Regional Diversification and Inequality between and within Regions," EconPol Forum, CESifo, vol. 23(05), pages 29-32, September.
    27. van Eck, N.J.P. & Waltman, L., 2009. "How to Normalize Co-Occurrence Data? An Analysis of Some Well-Known Similarity Measures," ERIM Report Series Research in Management ERS-2009-001-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    28. Sofia Wixe & Martin Andersson, 2017. "Which types of relatedness matter in regional growth? Industry, occupation and education," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 523-536, April.
    29. David L. Rigby & Christoph Roesler & Dieter Kogler & Ron Boschma & Pierre-Alexandre Balland, 2022. "Do EU regions benefit from Smart Specialisation principles?," Regional Studies, Taylor & Francis Journals, vol. 56(12), pages 2058-2073, December.
    30. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    31. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    32. Nees Jan van Eck & Ludo Waltman, 2009. "How to normalize cooccurrence data? An analysis of some well‐known similarity measures," Journal of the American Society for Information Science and Technology, Association for Information Science & Technology, vol. 60(8), pages 1635-1651, August.
    33. Pierre-Alexandre Balland & David Rigby, 2017. "The Geography of Complex Knowledge," Economic Geography, Taylor & Francis Journals, vol. 93(1), pages 1-23, January.
    34. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    35. Caviggioli, Federico & Jensen, Paul & Scellato, Giuseppe, 2020. "Highly skilled migrants and technological diversification in the US and Europe," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    36. Tian, Zheng, 2013. "Measuring Agglomeration Using the Standardized Location Quotient with a Bootstrap Method," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 43(2).
    37. Flavio L. Pinheiro & Pierre-Alexandre Balland & Ron Boschma & Dominik Hartmann, 2022. "The Dark Side of the Geography of Innovation. Relatedness, Complexity, and Regional Inequality in Europe," Papers in Evolutionary Economic Geography (PEEG) 2202, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2022.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gegner, Martin, 2023. "Die Akzeptanz gesetzlicher Initiativen zur Energiewende: Das Beispiel "Gesetz zum Neustart der Digitalisierung der Energiewende"," Discussion Papers, Research Group Digital Mobility and Social Differentiation SP III 2023-603, WZB Berlin Social Science Center.
    2. Steitz, Janek & Kölschbach Ortego, Axel, 2023. "Implikationen langfristiger Energiekostenunterschiede für energieintensive Industrien und den Wirtschaftsstandort Deutschland," Papers 277911, Dezernat Zukunft - Institute for Macrofinance, Berlin.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eduardo Hernandez-Rodriguez & Ron Boschma & Andrea Morrison & Xianjia Ye, 2023. "Functional upgrading and downgrading in global value chains: Evidence from EU regions using a relatedness/complexity framework," Papers in Evolutionary Economic Geography (PEEG) 2316, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2023.
    2. Duygu Buyukyazici & Leonardo Mazzoni & Massimo Riccaboni & Francesco Serti, 2024. "Workplace skills as regional capabilities: relatedness, complexity and industrial diversification of regions," Regional Studies, Taylor & Francis Journals, vol. 58(3), pages 469-489, March.
    3. Julia Bachtrögler-Unger & Pierre-Alexandre Balland & Ron Boschma & Thomas Schwab, 2023. "Technological Capabilities and the Twin Transition in Europe. Opportunities for Regional Collaboration and Economic Cohesion," WIFO Studies, WIFO, number 70743.
    4. Mariane Santos Françoso & Ron Boschma & Nicholas Vonortas, 2024. "Regional diversification in Brazil: The role of relatedness and complexity," Growth and Change, Wiley Blackwell, vol. 55(1), March.
    5. Ron Boschma, 2021. "Global Value Chains from an Evolutionary Economic Geography perspective: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 2134, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    6. Balland, Pierre-Alexandre & Boschma, Ron, 2022. "Do scientific capabilities in specific domains matter for technological diversification in European regions?," Research Policy, Elsevier, vol. 51(10).
    7. Flavio L. Pinheiro & Pierre-Alexandre Balland & Ron Boschma & Dominik Hartmann, 2022. "The Dark Side of the Geography of Innovation. Relatedness, Complexity, and Regional Inequality in Europe," Papers in Evolutionary Economic Geography (PEEG) 2202, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2022.
    8. Ron Boschma, 2022. "Evolutionary Economic Geography and Policy," Papers in Evolutionary Economic Geography (PEEG) 2220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2022.
    9. Tom Broekel & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The roles of diversity, complexity, and relatedness in regional development – What does the occupational perspective add?," Papers in Evolutionary Economic Geography (PEEG) 2135, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2021.
    10. Nicola Cortinovis & Dongmiao Zhang & Ron Boschma, 2022. "Regional diversification and intra-regional wage inequality in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 2216, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2022.
    11. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    12. Koen Frenken & Frank Neffke & Alje van Dam, 2023. "Capabilities, institutions and regional economic development: a proposed synthesis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 405-416.
    13. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    14. Emelie Hane-Weijman & Rikard H. Eriksson & David Rigby, 2020. "How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?," Papers in Evolutionary Economic Geography (PEEG) 2011, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    15. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2017. "Smart Specialization policy in the EU: Relatedness, Knowledge Complexity and Regional Diversification," Papers in Evolutionary Economic Geography (PEEG) 1717, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
    16. Nils Grashof & Stefano Basilico, 2023. "The dark side of green innovation? Green transition and regional inequality in Europe," Papers in Evolutionary Economic Geography (PEEG) 2314, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2023.
    17. Pierre-Alexandre Balland & Ron Boschma, 2021. "Complementary interregional linkages and Smart Specialisation: an empirical study on European regions," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1059-1070, June.
    18. Wolf-Hendrik Uhlbach & Pierre-Alexandre Balland & Thomas Scherngell, 2017. "R&D Policy and Technological Trajectories of Regions: Evidence from the EU Framework Programmes," Papers in Evolutionary Economic Geography (PEEG) 1722, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    19. Valentina Di Iasio & Ernest Miguelez, 2022. "The ties that bind and transform: knowledge remittances, relatedness and the direction of technical change [Brain drain or brain bank? The impact of skilled emigration on poor-country innovation]," Journal of Economic Geography, Oxford University Press, vol. 22(2), pages 423-448.
    20. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:egu:wpaper:2302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/deguunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.