Papers in Evolutionary Economic Geography

April 23, 2018

# 18.19 Relatedness and growth: The impact of creative industries to the wider economy

Filed under: 2018 — Tags: , , , , — T.Broekel @ 7:17 am

Niccolò Innocenti & Luciana Lazzeretti

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Abstract: The role of the cultural and creative industries (CCIs) in fostering both innovation and growth in the wider economy has been much debated, beginning with Bakhshi et al.’s (2008) seminal contribution. Such studies of creative environments tend to assign a strategic role to territories, but they provide little empirical evidence. In this paper, the issues of the creative economy are combined with evolutionary economic geography (EEG) topics in an attempt to understand whether the CCIs are able to foster innovation and growth in the wider economy. Using an indicator of the relatedness density between the creative and other sectors for the Italian provinces, we analyse employment growth and innovation over a period of ten years (2006–2015) by drawing from the AMADEUS database. A panel data analysis is then applied to investigate the role of relatedness and the clustering of the creative industries in wider economic growth, which shows that, at a local level, the creative industries require the presence of other sectors with a high degree of cognitive proximity/relatedness, while the capacity for development and innovation does not merely depend on their presence, but also on their relations and interdependencies with other economic sectors.

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September 8, 2015

# 15.30 Relatedness through experience: On the importance of collected worker experiences for plant performance

Filed under: 2015 — Tags: , , , , — mattehartog @ 3:46 pm

Lisa Östbring, Rikard Eriksson, Urban Lindgren

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The present article aims to show that multiple cognitive dimensions exist between employees in plants and that these multiple forms of potential cognitive relatedness interact in their influence on learning and plant performance. Because the success of a firm has come to be strongly associated with its ability to use the available resources (Penrose 1959), it has become increasingly important for firms to have just the right mix of competences. In the article, the knowledge and cognitive distance between employees in knowledge-intensive business services (KIBS) is measured in multiple ways – as formal knowledge, industry experience and past knowledge exposure. The different forms of cognitive distance are entered into pooled OLS regressions with year-, industry-, region-fixed effects and interaction terms to estimate the effects of various forms of cognition on plant performance. The results suggest that past knowledge experiences and formal education offer multiple channels for knowledge integration at the workplace and that the specific labor force knowledge characteristics present at a plant condition learning. It has been further shown that the organizational structure and flexibility associated with single-plant and multi-plant firms, respectively, generate different plant performance outcomes of knowledge variety. Moreover, we conclude that the commonly found negative effects of similarity in formal education on plant performance may be reduced by high levels of similarity in historical knowledge exposure or industry experience. These effects are stronger in multi-plant firms than in single-plant firms. We also find that high levels of human capital exert a reducing influence on the negative effects of high levels of cognitive similarity.

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