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Promoting regional growth and innovation: relatedness, revealed comparative advantage and the product space

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  • Gloria Cicerone
  • Philip McCann
  • Viktor A Venhorst

Abstract

We adapt the product-space approach of Hausmann–Hidalgo et al. to the case of Italian provinces, examining the extent to which network connectedness and centrality of a province’s exports is related to its economic performance. We construct a new Product Space Position (PSP) index which retains many of the Hausmann–Hidalgo et al. features but which is also much better suited to handling regional and provincial data. The PSP index is found to outperform other indices. Our comparison throws light on fundamental aspects of network-cognitive-distance-trade arguments. A better positioning in the export-network product space is indeed associated with better local economic outcomes.

Suggested Citation

  • Gloria Cicerone & Philip McCann & Viktor A Venhorst, 2020. "Promoting regional growth and innovation: relatedness, revealed comparative advantage and the product space," Journal of Economic Geography, Oxford University Press, vol. 20(1), pages 293-316.
    • Handle: RePEc:oup:jecgeo:v:20:y:2020:i:1:p:293-316.
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    1. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    2. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, July.
    3. Marjolein C.J. Caniëls, 2000. "Knowledge Spillovers and Economic Growth," Books, Edward Elgar Publishing, number 1936.
    4. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Clark University, vol. 87(3), pages 237-265, July.
    5. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Clark University, vol. 90(4), pages 403-427, October.
    6. Raffaele Paci & Stefano Usai, 2000. "The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 237-268.
    7. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Taylor & Francis Journals, vol. 90(4), pages 403-427, October.
    8. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
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    Cited by:

    1. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 2020. "Multinational enterprises, industrial relatedness and employment in European regions [Innovation: mapping the winds of creative destruction]," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    2. Kozo Kiyota, 2023. "Spatially uneven pace of deindustrialisation within a country," The World Economy, Wiley Blackwell, vol. 46(7), pages 2187-2230, July.
    3. Gloria Cicerone & Alessandro Crociata & Daniele Mantegazzi, 2021. "Cultural and creative industries and regional diversification: Does size matter?," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 671-687, June.
    4. Xiyan Mao & Peiyu Wang, 2023. "Import–export nexus and China's emerging trade in environmental goods," Growth and Change, Wiley Blackwell, vol. 54(1), pages 157-181, March.
    5. Ziliang Liu & Shengjun Zhu, 2021. "Changing institutional context and regional industrial dynamics: New evidence from the establishment of administrative approval centers in China," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1271-1294, September.
    6. Angelica Sbardella & Andrea Zaccaria & Luciano Pietronero & Pasquale Scaramozzino, 2021. "Behind the Italian Regional Divide: An Economic Fitness and Complexity Perspective," LEM Papers Series 2021/30, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. Ibolya Török & József Benedek & Manuel Gómez-Zaldívar, 2022. "Quantifying Subnational Economic Complexity: Evidence from Romania," Sustainability, MDPI, vol. 14(17), pages 1-22, August.
    8. Roberto Antonietti & Chiara Burlina, 2019. "From variety to economic complexity: empirical evidence from Italian regions," Papers in Evolutionary Economic Geography (PEEG) 1930, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2019.
    9. Antonietti, Roberto & Franco, Chiara, 2021. "From FDI to economic complexity: a panel Granger causality analysis," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 225-239.
    10. Hidalgo, César A., 2023. "The policy implications of economic complexity," Research Policy, Elsevier, vol. 52(9).
    11. Xianzhong Cao & Bo Chen & Yi Guo & Zhenzhen Yi, 2023. "The Impact of Intra-City and Inter-City Innovation Networks on City Economic Growth: A Case Study of the Yangtze River Delta in China," Land, MDPI, vol. 12(7), pages 1-17, July.
    12. 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.
    13. Pinheiro, Flávio L. & Hartmann, Dominik & Boschma, Ron & Hidalgo, César A., 2022. "The time and frequency of unrelated diversification," Research Policy, Elsevier, vol. 51(8).
    14. C'esar A. Hidalgo, 2022. "The Policy Implications of Economic Complexity," Papers 2205.02164, arXiv.org, revised Aug 2023.
    15. Ben Saad, Myriam & Brahim, Mariem & Schaffar, Alexandra & Guesmi, Khaled & Ben Saad, Rym, 2023. "Economic complexity, diversification and economic development: The strategic factors," Research in International Business and Finance, Elsevier, vol. 64(C).
    16. Nicola Cortinovis & Riccardo Crescenzi & Frank van Oort, 0. "Multinational enterprises, industrial relatedness and employment in European regions," Journal of Economic Geography, Oxford University Press, vol. 20(5), pages 1165-1205.
    17. Xin Mai & Roger C. K. Chan, 2020. "Detecting the intellectual pathway of resilience thinking in urban and regional studies: A critical reflection on resilience literature," Growth and Change, Wiley Blackwell, vol. 51(3), pages 876-889, September.
    18. Benedikt S. L. Fritz & Robert A. Manduca, 2019. "The Economic Complexity of US Metropolitan Areas," Papers 1901.08112, arXiv.org.
    19. Fritz, Benedikt & Manduca, Robert, 2021. "The Economic Complexity of US Metropolitan Areas," SocArXiv 2gw9c, Center for Open Science.
    20. Belmartino, Andrea, 2022. "Green & non-green relatedness: challenges and diversification opportunities for regional economies in Argentina," Nülan. Deposited Documents 3697, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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    More about this item

    Keywords

    Relatedness; revealed comparative advantage; product space; regional development;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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