IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/2409.html
   My bibliography  Save this paper

How regions diversify into new jobs: From related industries or related occupations?

Author

Listed:
  • Jason Deegan
  • Tom Broekel
  • Silje Haus-Reve
  • Rune Dahl Fitjar

Abstract

This paper adds a multidimensional perspective to the study of related diversification. We examine how regions diversify into new jobs – defined as unique industry-occupation combinations – asking whether they do so from related industries or related occupations. We use linked employer-employee data for all labour market regions in Norway, covering the time period 2009 –2014. Diversification into new jobs is more likely in the presence of related occupations and industries in a region. Furthermore, occupational and industrial relatedness have complementary effects on diversification. Occupational relatedness and its interaction with industrial relatedness are particularly important for diversification into more complex activities.

Suggested Citation

  • Jason Deegan & Tom Broekel & Silje Haus-Reve & Rune Dahl Fitjar, 2024. "How regions diversify into new jobs: From related industries or related occupations?," Papers in Evolutionary Economic Geography (PEEG) 2409, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2024.
  • Handle: RePEc:egu:wpaper:2409
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg2409.pdf
    File Function: Version April 2024
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 2020. "Multinational enterprises, industrial relatedness and employment in European regions [Innovation: mapping the winds of creative destruction]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    2. Ron Boschma & Asier Minondo & Mikel Navarro, 2013. "The Emergence of New Industries at the Regional Level in S pain: A Proximity Approach Based on Product Relatedness," Economic Geography, Clark University, vol. 89(1), pages 29-51, January.
    3. J�rgen Essletzbichler, 2015. "Relatedness, Industrial Branching and Technological Cohesion in US Metropolitan Areas," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 752-766, May.
    4. 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.
    5. Rune Dahl Fitjar & Bram Timmermans, 2019. "Relatedness and the Resource Curse: Is There a Liability of Relatedness?," Economic Geography, Taylor & Francis Journals, vol. 95(3), pages 231-255, May.
    6. Emelie Hane-Weijman & Rikard H. Eriksson & David Rigby, 2022. "How do occupational relatedness and complexity condition employment dynamics in periods of growth and recession?," Regional Studies, Taylor & Francis Journals, vol. 56(7), pages 1176-1189, July.
    7. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(2), pages 213-238, April.
    8. Benjamin Davies & David C. Maré, 2021. "Relatedness, complexity and local growth," Regional Studies, Taylor & Francis Journals, vol. 55(3), pages 479-494, March.
    9. Dieter F. Kogler & David L. Rigby & Isaac Tucker, 2013. "Mapping Knowledge Space and Technological Relatedness in US Cities," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1374-1391, September.
    10. 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.
    11. Martin Henning & Rikard H Eriksson, 2021. "Labour market polarisation as a localised process: evidence from Sweden," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(1), pages 69-91.
    12. Sándor Juhász & Tom Broekel & Ron Boschma, 2021. "Explaining the dynamics of relatedness: The role of co‐location and complexity," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 3-21, February.
    13. Leonardo Mazzoni & Niccolò Innocenti & Luciana Lazzeretti, 2022. "What kinds of relatedness promote new firm formation? Evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 29(1), pages 53-73, January.
    14. Steven C Bond-Smith & Philip McCann, 2020. "A multi-sector model of relatedness, growth and industry clustering [Distance to frontier, selection, and economic growth]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1145-1163.
    15. Markus Grillitsch & Bjørn Asheim & Michaela Trippl, 2018. "Unrelated knowledge combinations: the unexplored potential for regional industrial path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 257-274.
    16. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Industrial Diversification in Europe: The Differentiated Role of Relatedness," Economic Geography, Taylor & Francis Journals, vol. 94(5), pages 514-549, October.
    17. 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.
    18. Maarten Goos & Alan Manning, 2007. "Lousy and Lovely Jobs: The Rising Polarization of Work in Britain," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 118-133, February.
    19. Lo Turco, Alessia & Maggioni, Daniela, 2022. "The knowledge and skill content of production complexity," Research Policy, Elsevier, vol. 51(8).
    20. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, July.
    21. Kadri Kuusk, 2021. "Regional differences in how related variety ‘works’: the case of labour mobility," European Planning Studies, Taylor & Francis Journals, vol. 29(10), pages 1951-1973, October.
    22. 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.
    23. Alessia Lo Turco & Daniela Maggioni, 2016. "On firms’ product space evolution: the role of firm and local product relatedness," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 975-1006.
    24. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, November.
    25. Jeroen Content & Koen Frenken, 2016. "Related variety and economic development: a literature review," European Planning Studies, Taylor & Francis Journals, vol. 24(12), pages 2097-2112, December.
    26. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    27. 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.
    28. Bram Timmermans & Ron Boschma, 2014. "The effect of intra- and inter-regional labour mobility on plant performance in Denmark: the significance of related labour inflows," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 289-311.
    29. Eric J. Iversen & Sverre J. Herstad, 2022. "Dynamics of regional diversification: a new approach using trademark data," Regional Studies, Taylor & Francis Journals, vol. 56(2), pages 276-289, February.
    30. John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(1), pages 1-30, March.
    31. 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.
    32. John H. Dunning, 1997. "The European Internal Market Programme and Inbound Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 35(2), pages 189-223, June.
    33. Pier Saviotti & Koen Frenken, 2008. "Export variety and the economic performance of countries," Journal of Evolutionary Economics, Springer, vol. 18(2), pages 201-218, April.
    34. David L. Rigby, 2015. "Technological Relatedness and Knowledge Space: Entry and Exit of US Cities from Patent Classes," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1922-1937, November.
    35. Markus Grillitsch & Bjørn Asheim, 2018. "Place-based innovation policy for industrial diversification in regions," European Planning Studies, Taylor & Francis Journals, vol. 26(8), pages 1638-1662, August.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    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.
    3. 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.
    4. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    5. 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.
    6. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    7. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    8. Lars Mewes & Tom Broekel, 2020. "Subsidized to change? The impact of R&D policy on regional technological diversification," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 221-252, August.
    9. Barbero, Javier & Diukanova, Olga & Gianelle, Carlo & Salotti, Simone & Santoalha, Artur, 2024. "Technologically related diversification: One size does not fit all European regions," Research Policy, Elsevier, vol. 53(3).
    10. 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.
    11. 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.
    12. Moreno, Rosina & Ocampo-Corrales, Diego, 2022. "The ability of European regions to diversify in renewable energies: The role of technological relatedness," Research Policy, Elsevier, vol. 51(5).
    13. 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).
    14. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    15. 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.
    16. 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).
    17. 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.
    18. Zoltán Elekes & Anna Baranowska-Rataj & Rikard Eriksson, 2023. "Regional diversification and labour market upgrading: local access to skill-related high-income jobs helps workers escaping low-wage employment," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 417-430.
    19. 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.
    20. John-Erik Rørheim & Ron Boschma, 2022. "Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region," Environment and Planning A, , vol. 54(4), pages 676-692, June.

    More about this item

    Keywords

    Regional capabilities; jobs; occupations; relatedness; diversification;
    All these keywords.

    JEL classification:

    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    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:2409. 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.