Papers in Evolutionary Economic Geography

November 27, 2019

# 19.32 Do Regional Social Capital and Trust Matter for Immigrant Diversity and Wages?

Filed under: 2019 — Tags: , , , , , , , , — paulaprenzel @ 8:08 am

Silje Haus-Reve and Abigail Cooke

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Abstract: Recent studies suggest that greater immigrant diversity in regions and workplaces increases productivity, and inclusive regional conditions are found to be important for this mechanism. Seeking to better understand this relationship, this paper broadens the dimensions and refines the measures of regional context pertaining to immigrant diversity outcomes. Regional measures of trust in foreigners and trust in government are tested under the hypothesis that regions with higher trust will have larger associations between rising immigrant diversity and increasing local wages. Additionally, we hypothesize that the benefits from immigrant diversity will be higher in regions with a strong social bridging culture, while the opposite will be the case in regions with a high level of social bonding. Looking across these novel and more nuanced dimensions of regional context, we find that they each matter in shaping the effects of diversity. Specifically, we find that spillovers from regional diversity are higher in regions with low levels of social bonding and in regions with high levels of trust, confirming the hypotheses. Evidence on regional variation in bridging social capital does not confirm the hypothesis. Using high quality longitudinal matched employer-employee data from Norway from 2001-2011, this paper provides a new case in the empirical diversity-productivity literature and novel evidence on the regional dimensions that shape this relationship.

November 13, 2019

# 19.31 Do EU regions benefit from smart specialization?

Filed under: 2019 — Tags: , , , , — paulaprenzel @ 3:12 pm

David L. Rigby, Christoph Roesler, Dieter Kogler, Ron Boschma and Pierre-Alexandre Balland

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Abstract: Smart specialization was conceived as a “bottom-up” framework to identify new growth paths connected to the existing knowledge cores of regions. Operationalization of smart specialization has proven difficult, though a recent “mapping” of technologies in terms of knowledge relatedness and complexity suggests a useful cost-benefit framework. We extend these ideas, locating EU cities in a smart specialization space and tracking their development of alternative technologies over the period 1981 to 2015. Panel models show employment growth and GDP growth are faster in cities that exhibit a logic of technological development consistent with the tenets of smart specialization.

October 31, 2019

# 19.30 From variety to economic complexity: empirical evidence from Italian regions

Filed under: 2019 — Tags: , , , — paulaprenzel @ 3:48 pm

Roberto Antonietti and Chiara Burlina

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Abstract: Taking an evolutionary economic geography approach, we test whether the level of industry variety in a region affects its economic complexity. With reference to Italy, we measure variety using a Theil index of information entropy, and complexity with the Hidalgo and Hausmann index. Our results show that regions where variety grows faster also have a higher rate of growth in economic complexity. This relationship only holds in regions with low initial levels of variety and/or complexity, however, which are mainly located in the South of Italy. We suggest that product diversification, by increasing regional specialization in high-tech industries, can explain regional development and Italian North-South disparities.

# 19.29 The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark

Filed under: 2019 — Tags: , , , , — paulaprenzel @ 3:44 pm

Mads Bruun Ingstrup and Max-Peter Menzel

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Abstract: When investigating the emergence of relatedness between two previously unrelated industries – the offshore oil and gas industry and the offshore wind energy industry in Esbjerg, Denmark, – we argue that relatedness is a system property, whose emergence should be visible via organizational search processes in the other industry. While network positions were important when companies began explorative searches in the other industry, regular search processes in the other industry coincided with the formation of new organizational arrangements. With these findings in mind, we propose that relatedness emerges when relationships between two industries are institutionalized.

October 17, 2019

# 19.28 Regional diversification patterns and Key Enabling Technologies (KETs) in Italian regions

Filed under: 2019 — Tags: , , — paulaprenzel @ 2:51 pm

Roberto Antonietti & Sandro Montresor

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Abstract: This paper investigates the role of Key Enabling Technologies (KETs) in the regional diversification of economic activities. We maintain that KETs drive different diversification trajectories, leading regions from the most conservative to the most radical pattern of diversification. Using an original dataset for Italian NUTS3 regions, we estimate a series of ordered logit models, in which a region’s propensity to move across industry diversification patterns depends on its KETs endowment. We find regions with more KETs better able to move towards more ‘unrelated’ diversification patterns, but only when KETs are combined with other technologies, and only in densely populated regions.

October 9, 2019

# 19.27 A shot in the dark? Policy influence on cluster networks

Holger Graf & Tom Broekel

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Abstract: Cluster policies are often intended and designed to promote interaction in R&D among co-located organisations, as local knowledge interactions are perceived to be underdeveloped. In contrast to the popularity of the policy measure little is known about its impact on knowledge networks, because most scientific evaluations focus on impacts at the firm level. Using the example of the BioRegio contest, we explore cluster policy effects on local patent co-application and co-invention networks observed from 1985 to 2013, in 17 German regions. We find that the initiative increases network size and innovation activities during the funding period but not afterwards. The impact of the BioRegio contest on network cohesion is moderate. In contrast, general project-based R&D subsidisation is found to support cohesion more robustly.

September 12, 2019

# 19.26 Multidimensional relatedness between innovation systems in sustainability transitions

Tuukka Mäkitie, Allan D. Andersen & Jens Hanson

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Abstract: Recent literature in sustainability transition studies has suggested that established industries may provide resources for innovation in low-carbon technologies. This literature, however, has this far not explained why such resource redeployment takes place. Literature in evolutionary economic geography and management studies, however, have discussed such interactions through the notion of relatedness as an underlying factor. Drawing on these literatures we develop an integrated framework for the analysis of multidimensional relatedness between innovation systems in the context of sustainability transitions. Using semi-structured interviews, we study the technological, institutional and network relatedness between the oil and gas industry and the offshore wind power technology in Norway. Our results show that despite the high relatedness in offshore technologies, low relatedness in terms of institutions has challenged the resource redeployment from the Norwegian oil and gas industry to offshore wind power. We thus suggest that relatedness, understood in multiple structural dimensions, can help to understand why resource redeployment from established industries to technological innovation systems may, or may not, take place.

September 8, 2019

# 19.25 Mapping the potential of EU regions to contribute to Industry 4.0

Filed under: 2019 — Tags: , , , , , — T.Broekel @ 7:56 pm

Pierre-Alexandre Balland & Ron Boschma

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Abstract: This paper aims to identify the future Industry 4.0 centers of knowledge production in Europe. We expect Industry 4.0 Technologies (I4Ts) to thrive in regions where they can draw on local resources from related technologies. We use OECD-REGPAT data to identify I4T-related technologies, and find that I4Ts are located at the periphery of the knowledge space. Regions with a high potential in terms of I4T-related technologies were more likely to diversify successfully in new I4Ts in the period 2002-2016. We find big differences across EU regions: some show high but most regions show weak I4T potential.

July 26, 2019

#19.24 Technological regimes and the geography of innovation: a long-run perspective on US inventions

Filed under: 2019 — Tags: , , , , — T.Broekel @ 8:47 pm

Dario Diodato and Andrea Morrison

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Abstract: The geographical distribution of innovative activities is an emerging subject, but still poorly understood. While previous efforts highlighted that different technologies exhibit different spatial patterns, in this paper we analyse the geography of innovation in the very long run. Using a US patent dataset geocoded for the years 1836-2010, we observe that – while it is true that differences in technologies are strong determinant of spatial patterns – changes within a technology over time is at least as important. In particular, we find that regional entry follows the technology life cycle. Subsequently, innovation becomes less geographical concentrated in the first half of the life cycle, to then re-concentrate in the second half.

#19.23 Lagging-behind Areas as a Challenge to the Regional Development Strategy: What Insights can New and Evolutionary Economic Geography Offer?

Seyed Peyman Asadi and Ahmad Jafari Samimi

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Abstract: Lagging-behind areas, as an example of convergence failure within a country, have attracted the attention of many researchers who try to adopt appropriate policies and strategies to overcome the problem of low growth paths. The current study concentrates on policy recommendations in the framework of New Economic Geography and Evolutionary Economic Geography for the lagging regions. The agglomerated industry, as a fundamental element of the new economic geography, has limited the potentials of policy prescriptions for lagging-behind areas. Constructing regional advantages, as a policy in evolutionary economic geography, has helped diversifying the policy options for the lagging-behind regions. However, this approach is faced with multi-level challenges in lagging-behind areas including the lack of critical mass in the case of low related variety and the knowledge base gap between the lagging and prosperous regions. Therefore, the policy should provide a structure for the simulation of external knowledge links and differentiate the nature of various related industries if it is going to be a basis for constructing regional advantages.

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