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Skill capabilities behind the scenes. The role of occupational portfolio in regional industrial evolution

Author

Listed:
  • Jing Chen
  • Xiaojing Li
  • Xiaoqi Zhou
  • Rongjun Ao

Abstract

An increasing number of studies confirm that regional diversification is path-dependent, with new industries building on pre-existing ones. However, these studies typically overlook the role of skill capabilities and the interactions between skills and industries. In this research, based on the concept of industry-occupation cross-relatedness, the influence of skill capabilities on industrial diversification across Chinese regions was investigated. Findings indicate that regions can diversify into skill-related activities following a skill path-dependent process. Furthermore, a theoretical framework integrating industry-occupation cross- relatedness and economic complexity was introduced, which enabled the adoption of various diversification strategies based on regional skill capabilities.

Suggested Citation

  • Jing Chen & Xiaojing Li & Xiaoqi Zhou & Rongjun Ao, 2025. "Skill capabilities behind the scenes. The role of occupational portfolio in regional industrial evolution," Papers in Evolutionary Economic Geography (PEEG) 2508, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2025.
    • Handle: RePEc:egu:wpaper:2508
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    File URL: http://econ.geo.uu.nl/peeg/peeg2508.pdf
    File Function: Version April 2025
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    More about this item

    Keywords

    Industrial evolution; cross-relatedness; path dependence; skill capabilities; Chinese regions;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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

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