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Regional Branching and Smart Specialisation Policy

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Abstract

This note studies the mechanisms through which regional economies diversify over time and formulates suggestions on how policy can influence such process. In particular, two closely related concepts will be defined, that is, technological relatedness and related variety. Regional diversification is a crucial process in order to develop new growth paths. It is understood as an emerging process through which new activities develop out of existing ones, but the scope and outcome of this process are fundamentally affected by technological and cognitive constraints. We discuss how technological relatedness may provide an input for effective policy making. In this respect, public policy should avoid picking winners that do not fit into the regional actual and potential industrial space and should prevent supporting declining industries that occupy a peripheral position in the industry space of a region. More in particular, we direct attention to various mechanisms through which new industries may be stimulated to connect to technologically related industries at the regional level. We also introduce the process of entrepreneurial discovery, in which entrepreneurs generate the key information guiding the selection of the domains of future regional specialization, and discuss its relationship with policy schemes based on related diversification.

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  • Ron Boschma & Carlo Gianelle, 2014. "Regional Branching and Smart Specialisation Policy," JRC Working Papers JRC88242, Joint Research Centre (Seville site).
  • Handle: RePEc:ipt:iptwpa:jrc88242
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    File URL: http://publications.jrc.ec.europa.eu/repository/handle/JRC88242
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    Cited by:

    1. 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.
    2. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. repec:wfo:wstudy:59427 is not listed on IDEAS
    4. repec:wfo:wstudy:60625 is not listed on IDEAS
    5. repec:eee:respol:v:48:y:2019:i:5:p:1187-1200 is not listed on IDEAS
    6. repec:wfo:wstudy:58342 is not listed on IDEAS
    7. Sandro Montresor & Francesco Quatraro,, 2018. "Green Technologies and Smart Specialisation Strategies: A European Patent-Based Analysis of the Intertwining of Technological Relatedness and Key-Enabling-Technologies," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201808, University of Turin.
    8. repec:gam:jsusta:v:10:y:2018:i:2:p:319-:d:128888 is not listed on IDEAS

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    Keywords

    European cohesion policy; Structural Funds; smart specialisation; related variety; regional branching; entrepreneurial discovery process;

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