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The knowledge and skill content of production complexity

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  • Lo Turco, Alessia
  • Maggioni, Daniela

Abstract

In this paper we investigate the labour content of complex products. By exploiting O*NET information on the skill and knowledge required by occupations, we find that the product complexity measure suggested by Hausmann and Hidalgo (2009) is highly intensive in STEM knowledge and in Science, Mathematics and Critical Thinking skill requirements. We then propose a new measure of occupational complexity based on these occupational features. Among other advantages, this indicator has the merit to measure complexity for service industries that, so far, has never been measured. In an empirical model of the growth of USA Metropolitan Areas (MSAs), we find that MSAs whose initial industrial structure embeds a higher level of occupational complexity experience higher real per capita GDP growth over the 2001–2017 period. The occupational complexity measure is a stronger predictor of growth than other metrics of industries’ occupational and task content as well as compared to indicators of local occupational and industrial composition. When we separately compute occupational complexity of service and manufacturing industries and delve into their specific role for long run growth, we find a prominent role of the occupation complexity embedded in local services with respect to the one embedded in local manufacturing. Our baseline evidence is corroborated in the context of the NUTS3 regions of France over the period 2010–2017.

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  • Lo Turco, Alessia & Maggioni, Daniela, 2022. "The knowledge and skill content of production complexity," Research Policy, Elsevier, vol. 51(8).
    • Handle: RePEc:eee:respol:v:51:y:2022:i:8:s0048733320301372
    DOI: 10.1016/j.respol.2020.104059
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    Cited by:

    1. Goran Hristovski & Gjorgji Gockov & Viktor Stojkoski, 2024. "Multidimensional Economic Complexity and Fiscal Crises," Papers 2411.02027, arXiv.org.
    2. Marialuisa Divella & Alessia Lo Turco & Alessandro Sterlacchini, 2023. "Local labour tasks and patenting in US commuting zones," Journal of Economic Geography, Oxford University Press, vol. 23(5), pages 1097-1119.
    3. Jason Deegan & Tom Broekel & Silje Haus-Reve & Rune Dahl Fitjar, 2024. "How regions diversify into new jobs: From related industries or related occupations?," Papers in Evolutionary Economic Geography (PEEG) 2409, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2024.

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    More about this item

    Keywords

    Occupational complexity; Services; Regional growth; STEM;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L80 - Industrial Organization - - Industry Studies: Services - - - General

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