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Neighbour regions as the source of new industries

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  • Ron Boschma
  • Víctor Martín
  • Asier Minondo

Abstract

The development of new industries demands access to local capabilities. Little attention has yet been paid to the role of spillovers from neighbor regions for industrial diversification, nor has the role of network linkages between neighbor regions been investigated. As the spread of capabilities has a strong geographical bias, we expect regions to develop new industries in which their neighbor regions are specialized. To test this hypothesis, we analyze the development of new industries in US states during the period 2000-2012. We show that an US state has a higher probability of developing a comparative advantage in a new industry if a neighbor state is specialized in that industry. We also show that neighbor US states have more similar export structures. This export similarity seems to be explained by higher social connectivity between neighbor states, as embodied in their bilateral migration patterns.
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  • Ron Boschma & Víctor Martín & Asier Minondo, 2017. "Neighbour regions as the source of new industries," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 227-245, June.
    • Handle: RePEc:bla:presci:v:96:y:2017:i:2:p:227-245
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    2. Xu, Mo & Tao, Changqi, 2024. "How to reach new technological specialisation: The role of related technological capabilities and complementary technological linkages," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Pierre-Alexandre Balland & Ron Boschma, 2021. "Complementary interregional linkages and Smart Specialisation: an empirical study on European regions," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1059-1070, June.
    4. Jin, Wenwan & Zhu, Shengjun, 2023. "High-speed rail network and regional convergence/divergence in industrial structure," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    5. Trippl , Michaela & Grillitsch , Markus & Isaksen , Arne, 2015. "External “energy” for regional industrial change: attraction and absorption of non-local knowledge for new path development," Papers in Innovation Studies 2015/47, Lund University, CIRCLE - Centre for Innovation Research.
    6. 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.
    7. Shengjun Zhu & Chong Wang & Canfei He, 2019. "High-speed Rail Network and Changing Industrial Dynamics in Chinese Regions," International Regional Science Review, , vol. 42(5-6), pages 495-518, September.
    8. Qiliang Mao & Xianzhuang Mao, 2021. "Cultural barriers, institutional distance, and spatial spillovers: Evidence from regional industrial evolution in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1440-1481, September.
    9. Tengfei Wang & Henrik Halkier & Laura James & Renxu Gu & Cheng Chi, 2022. "External Knowledge Linkages and the Evolution of Comparative Advantage: An Examination of Territorial Knowledge Dynamics in China," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
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    12. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development Formations of Co-Inventors During the Dot-com Bubble in the Research Triangle Region," Papers in Evolutionary Economic Geography (PEEG) 1706, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
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    14. Di Giacomo, Marina & Perucca, Giovanni & Piacenza, Massimiliano & Turati, Gilberto, 2024. "Immigrants' clusters and unequal access to healthcare treatments," Regional Science and Urban Economics, Elsevier, vol. 109(C).
    15. Jung-In Yeon & Sojung Hwang & Bogang Jun, 2022. "The spillover effect of neighboring port on regional industrial diversification and regional economic resilience," Papers 2204.00189, arXiv.org.
    16. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    17. Patricio Saiz & Jose Luis Zofio, 2020. "The Making and Consolidation of the First National Trademark System: Diffusion of Trademarks across Spanish Regions (1850–1920)," Papers in Evolutionary Economic Geography (PEEG) 2060, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2020.
    18. V. A. Kryukov & A. N. Tokarev, 2023. "Innovative-Resource Directions of Industrial Development: The Example of the South of the Tyumen Oblast," Studies on Russian Economic Development, Springer, vol. 34(1), pages 25-32, February.
    19. Jeroen Content & Koen Frenken, 2016. "Related variety and economic development: a literature review," European Planning Studies, Taylor & Francis Journals, vol. 24(12), pages 2097-2112, December.
    20. Bai, Hanyu & Irfan, Muhammad & Hao, Yu, 2022. "How does industrial transfer affect environmental quality? Evidence from China," Journal of Asian Economics, Elsevier, vol. 82(C).
    21. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    22. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development," Papers 1703.01369, arXiv.org.
    23. Martin Grančay & Tomáš Dudáš, 2019. "Bilateral trade flows and comparative advantage: does the size matter?," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(4), pages 397-413, December.

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    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N94 - Economic History - - Regional and Urban History - - - Europe: 1913-
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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