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Which Types of Relatedness Matter in Regional Growth? - Industry, occupation and education

  • Wixe, Sofia

    ()

    (Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School)

  • Andersson, Martin

    ()

    (Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University)

This paper provides a conceptual discussion of relatedness, which suggests a focus on individuals as a complement to firms and industries. The empirical relevance of the main arguments are tested by estimating the effects of related and unrelated variety in education and occupation among employees, as well as in industries, on regional growth. We show that for regional productivity growth, occupational and educational related variety matter over and above industry relatedness. This supports the conceptual discussion put forward. The potential of productive interactions between employees in a region is greater when there is related variety in their ‘knowledge base’. We also find that related variety in industries is positive for employment growth but negative for productivity growth.

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 332.

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Length: 29 pages
Date of creation: 28 Nov 2013
Date of revision:
Handle: RePEc:hhs:cesisp:0332
Contact details of provider: Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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