IDEAS home Printed from https://ideas.repec.org/a/bla/tvecsg/v112y2021i1p81-96.html
   My bibliography  Save this article

Dynamic Nature of Relatedness, or What Kind of Related Variety for Long‐Term Regional Growth

Author

Listed:
  • Kadri Kuusk
  • Mikhail Martynovich

Abstract

We challenge the currently dominating static view of inter‐industry relatedness by investigating the evolution of relatedness linkages between Swedish industries during five sub‐periods between 1991 and 2010. Distinguishing between stable ties (present in all sub‐periods) and non‐stable ties (e.g. emerging, disappearing, etc.), we demonstrate that inter‐industry relatedness linkages change considerably over time. Furthermore, we show that these changes matter for how the co‐location of related industries (related variety) influences regional employment growth – to generate growth the type of local related ties should match with the regional setting. We suggest that, at least partly, the impact of emerging, stable and disappearing ties differs since complementarity potential between related industries becomes depleted over time. In other words, relatedness linkages have a ‘best before date’.

Suggested Citation

  • Kadri Kuusk & Mikhail Martynovich, 2021. "Dynamic Nature of Relatedness, or What Kind of Related Variety for Long‐Term Regional Growth," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 112(1), pages 81-96, February.
    • Handle: RePEc:bla:tvecsg:v:112:y:2021:i:1:p:81-96
    DOI: 10.1111/tesg.12427
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/tesg.12427
    Download Restriction: no
    File URL: https://libkey.io/10.1111/tesg.12427?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Frank van Oort & Stefan de Geus & Teodora Dogaru, 2015. "Related Variety and Regional Economic Growth in a Cross-Section of European Urban Regions," European Planning Studies, Taylor & Francis Journals, vol. 23(6), pages 1110-1127, June.
    2. J�rgen Essletzbichler, 2015. "Relatedness, Industrial Branching and Technological Cohesion in US Metropolitan Areas," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 752-766, May.
    3. Andrew Chadwick & John Glasson & Helen Lawton Smith, 2008. "Employment Growth in Knowledge-Intensive Business Services in Great Britain during the 1990s — Variations at the Regional and Sub-Regional Level," Local Economy, London South Bank University, vol. 23(1), pages 6-18, February.
    4. Rune Dahl Fitjar & Bram Timmermans, 2017. "Regional skill relatedness: towards a new measure of regional related diversification," European Planning Studies, Taylor & Francis Journals, vol. 25(3), pages 516-538, March.
    5. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," Papers in Evolutionary Economic Geography (PEEG) 1929, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2019.
    6. Nicola Cortinovis & Frank Oort, 2015. "Variety, economic growth and knowledge intensity of European regions: a spatial panel analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 7-32, October.
    7. 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.
    8. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    9. Mads Bruun Ingstrup & Max-Peter Menzel, 2019. "The emergence of relatedness between industries: The example of offshore oil and gas and offshore wind energy in Esbjerg, Denmark," PEGIS geo-disc-2019_15, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    10. Carolina Castaldi & Koen Frenken & Bart Los, 2015. "Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of US State-Level Patenting," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 767-781, May.
    11. Ron Boschma & Rikard Eriksson & Urban Lindgren, 2009. "How does labour mobility affect the performance of plants? The importance of relatedness and geographical proximity," Journal of Economic Geography, Oxford University Press, vol. 9(2), pages 169-190, March.
    12. Mark Thissen & Frank van Oort & Dario Diodato & Arjan Ruijs, 2013. "Regional Competitiveness and Smart Specialization in Europe," Books, Edward Elgar Publishing, number 15331.
    13. repec:nas:journl:v:115:y:2018:p:12646-12653 is not listed on IDEAS
    14. Shigeru Fujita & Makoto Nakajima, 2016. "Worker Flows and Job Flows: A Quantitative Investigation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 22, pages 1-20, October.
    15. Arthur, W. Brian, 2007. "The structure of invention," Research Policy, Elsevier, vol. 36(2), pages 274-287, March.
    16. Mikhail Martynovich & Martin Henning, 2018. "Labour force building in a rapidly expanding sector," Industry and Innovation, Taylor & Francis Journals, vol. 25(2), pages 199-227, February.
    17. Burgess, Simon & Turon, Hélène, 2010. "Worker flows, job flows and unemployment in a matching model," European Economic Review, Elsevier, vol. 54(3), pages 393-408, April.
    18. Paul Bishop & Peter Gripaios, 2010. "Spatial Externalities, Relatedness and Sector Employment Growth in Great Britain," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 443-454.
    19. Riccardo Cappelli & Ron Boschma & Anet Weterings, 2019. "Labour mobility, skill-relatedness and new plant survival across different development stages of an industry," Environment and Planning A, , vol. 51(4), pages 869-890, June.
    20. Lee Fleming, 2001. "Recombinant Uncertainty in Technological Search," Management Science, INFORMS, vol. 47(1), pages 117-132, January.
    21. Mikhail Martynovich & Karl-Johan Lundquist, 2016. "Technological Change and Geographical Reallocation of Labour: On the Role of Leading Industries," Regional Studies, Taylor & Francis Journals, vol. 50(10), pages 1633-1647, October.
    22. James G. March, 1991. "Exploration and Exploitation in Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 71-87, February.
    23. Ron Boschma & Rikard H. Eriksson & Urban Lindgren, 2014. "Labour Market Externalities and Regional Growth in Sweden: The Importance of Labour Mobility between Skill-Related Industries," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1669-1690, October.
    24. Jacob Rubæk Holm & Christian Richter Østergaard & Thomas Roslyng Olesen, 2017. "Destruction And Reallocation Of Skills Following Large Company Closures," Journal of Regional Science, Wiley Blackwell, vol. 57(2), pages 245-265, March.
    25. Matthias Firgo & Peter Mayerhofer, 2018. "(Un)related variety and employment growth at the sub‐regional level," Papers in Regional Science, Wiley Blackwell, vol. 97(3), pages 519-547, August.
    26. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    27. 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.
    28. Michael Fritsch & Sandra Kublina, 2018. "Related variety, unrelated variety and regional growth: the role of absorptive capacity and entrepreneurship," Regional Studies, Taylor & Francis Journals, vol. 52(10), pages 1360-1371, October.
    29. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    30. Herbert A. Simon, 1991. "Bounded Rationality and Organizational Learning," Organization Science, INFORMS, vol. 2(1), pages 125-134, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Markus Grillitsch & Mikhail Martynovich & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The black box of regional growth," Journal of Geographical Systems, Springer, vol. 23(3), pages 425-464, July.
    2. Mikhail Martynovich & Teis Hansen & Karl-Johan Lundquist, 2023. "Can foundational economy save regions in crisis?," Journal of Economic Geography, Oxford University Press, vol. 23(3), pages 577-599.
    3. John-Erik Rørheim & Ron Boschma, 2022. "Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region," Environment and Planning A, , vol. 54(4), pages 676-692, June.
    4. Bathelt, Harald & Storper, Michael, 2023. "Related variety and regional development: a critique," LSE Research Online Documents on Economics 120162, London School of Economics and Political Science, LSE Library.
    5. Harald Bathelt & Michael Storper, 2022. "Related Variety and Regional Development," Papers in Evolutionary Economic Geography (PEEG) 2214, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2022.
    6. Martin Ron & Sunley Peter, 2022. "Making history matter more in evolutionary economic geography," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(2), pages 65-80, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kadri Kuusk & Mikhail Martynovich, 2018. "What kind of related variety for long-term regional growth?," Papers in Evolutionary Economic Geography (PEEG) 1834, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2018.
    2. Mikhail Martynovich & Josef Taalbi, 2020. "Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010," Papers in Evolutionary Economic Geography (PEEG) 2015, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    3. Kolja Hesse & Dirk Fornahl, 2020. "Essential ingredients for radical innovations? The role of (un‐)related variety and external linkages in Germany," Papers in Regional Science, Wiley Blackwell, vol. 99(5), pages 1165-1183, October.
    4. Apa, Roberta & De Noni, Ivan & Orsi, Luigi & Sedita, Silvia Rita, 2018. "Knowledge space oddity: How to increase the intensity and relevance of the technological progress of European regions," Research Policy, Elsevier, vol. 47(9), pages 1700-1712.
    5. Ejdemo, Thomas & Örtqvist, Daniel, 2020. "Related variety as a driver of regional innovation and entrepreneurship: A moderated and mediated model with non-linear effects," Research Policy, Elsevier, vol. 49(7).
    6. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    7. Jefferson Ricardo Bretas Galetti & Milene Simone Tessarin & Paulo Cesar Morceiro, 2021. "Skill relatedness, structural change and heterogeneous regions: evidence from a developing country," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1355-1376, December.
    8. Xiaozhen Qin & Shan Li & Weipan Xu & Xun Li, 2019. "Which Export Variety Matters for Urban Economic Growth, Related or Unrelated Variety?," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    9. Carlo Corradini & Enrico Vanino, 2022. "Path dependency, regional variety and the dynamics of new firm creation in rooted and pioneering industries [The knowledge spillover theory of entrepreneurship]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 631-651.
    10. John-Erik Rørheim & Ron Boschma, 2022. "Skill-relatedness and employment growth of firms in times of prosperity and crisis in an oil-dependent region," Environment and Planning A, , vol. 54(4), pages 676-692, June.
    11. Quatraro, Francesco & Scandura, Alessandra, 2020. "Regional patterns of unrelated technological diversification: the role of academic inventors," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202001, University of Turin.
    12. Peter Mayerhofer & Peter Huber, 2019. "Notwendigkeit und Möglichkeiten kooperativer Raum- und Wirtschaftsentwicklung in der Metropolregion Wien. Problemfelder, Handlungsoptionen, Umsetzungsmöglichkeiten," WIFO Studies, WIFO, number 69764.
    13. Ron Boschma & Ernest Miguelez & Rosina Moreno & Diego B. Ocampo-Corrales, 2021. "Technological breakthroughs in European regions: the role of related and unrelated combinations," Papers in Evolutionary Economic Geography (PEEG) 2118, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2021.
    14. S. Stavropoulos & F. G. Oort & M. J. Burger, 2020. "Heterogeneous relatedness and firm productivity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 403-437, October.
    15. Jing Xiao & Ron Boschma & Martin Andersson, 2018. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 15-47.
    16. Zabala-Iturriagagoitia, Jon Mikel & Porto Gómez, Igone & Aguirre Larracoechea, Urko, 2020. "Technological diversification: a matter of related or unrelated varieties?," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    17. Rune Dahl Fitjar & Bram Timmermans, 2019. "Relatedness and the Resource Curse: Is There a Liability of Relatedness?," Economic Geography, Taylor & Francis Journals, vol. 95(3), pages 231-255, May.
    18. Adam Whittle & Balázs Lengyel & Dieter F. Kogler, 2020. "Understanding Regional Branching Knowledge Diversification via Inventor Collaboration Networks," Papers in Evolutionary Economic Geography (PEEG) 2006, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2020.
    19. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2017. "Smart Specialization policy in the EU: Relatedness, Knowledge Complexity and Regional Diversification," Papers in Evolutionary Economic Geography (PEEG) 1717, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2017.
    20. Barbieri, Nicolò & Consoli, Davide, 2019. "Regional diversification and green employment in US metropolitan areas," Research Policy, Elsevier, vol. 48(3), pages 693-705.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:tvecsg:v:112:y:2021:i:1:p:81-96. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0040-747X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.