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The Determinants of Regional Specialisation in Business Services: Agglomeration Economies, Vertical Linkages and Innovation

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  • Valentina Meliciani

    () (University of Teramo)

  • Maria Savona

    () (SPRU, University of Sussex)

Abstract

The article accounts for the determinants of sectoral specialisation in business services (BS) across the EU-27 regions as determined by: (i) agglomeration economies (ii) the region-specific structure of intermediate linkages (iii) technological innovation and knowledge intensity and (iv) the presence of these factors in neighbouring regions. The empirical analysis draws upon the REGIO panel database over the period 1999–2003. By estimating a Spatial Durbin Model, we find significant spatial effects in explaining regional specialisation in BS. Our findings show that, besides urbanisation economies, the spatial structure of intermediate sectoral linkages and innovation, in particular Information and Communication Technologies (ICTs), are important determinants of specialisation in BS. The article contributes to the debate on the global versus local determinants of regional specialisation in BS by restating the importance of the regional sectoral structure besides that of urbanisation. We draw policy implications by rejecting the ‘footloose hypothesis’ for BS.
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Suggested Citation

  • Valentina Meliciani & Maria Savona, 2011. "The Determinants of Regional Specialisation in Business Services: Agglomeration Economies, Vertical Linkages and Innovation," SPRU Working Paper Series 193, SPRU - Science and Technology Policy Research, University of Sussex.
  • Handle: RePEc:sru:ssewps:193
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    Cited by:

    1. MORIKAWA Masayuki, 2016. "Location and Productivity of Knowledge- and Information-intensive Business Services," Discussion papers 16067, Research Institute of Economy, Trade and Industry (RIETI).
    2. Tommaso Ciarli & Valentina Meliciani & Maria Savona, 2012. "Knowledge Dynamics, Structural Change And The Geography Of Business Services," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 445-467, July.
    3. Francesca Mameli & Simona Iammarino & Ron Boschma, 2012. "Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries," Papers in Evolutionary Economic Geography (PEEG) 1203, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2012.
    4. Thomas Brenner & Marco Capasso & Matthias Duschl & Koen Frenken & Tania Treibich, 2015. "Causal Relations between Knowledge-Intensive Business Services and Regional Employment Growth," Working Papers on Innovation and Space 2015-04, Philipps University Marburg, Department of Geography.
    5. Andrea Ascani & Simona Iammarino, 2017. "Multinational enterprises, service outsourcing and regional structural change," Papers in Evolutionary Economic Geography (PEEG) 1724, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.

    More about this item

    Keywords

    Business Services; Regional Specialisation; Agglomeration economies; ServicesManufacturing Linkages; Technological Innovation; Spatial Durbin Model.;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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