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The roles of KIBS and R&D in the industrial diversification of regions

Author

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  • Jeroen Content

    (Utrecht University School of Economics)

  • Nicola Cortinovis

    (Erasmus University Rotterdam)

  • Koen Frenken

    (Utrecht University)

  • Jacob Jordaan

    (Utrecht University School of Economics)

Abstract

There is a growing recognition of the importance of the creation of new industrial specialisations for sustained regional growth. However, path dependency often limits a region’s ability to do so, as the occurrence of new industrial specialisations is conditioned by its existing industrial base. In this paper, we use data for 269 NUTS-2 EU regions to examine whether regional Knowledge-Intensive Business Services (KIBS) and Research and Development (R&D) enhance the capacity of regions to specialise in new industries, against the forces of path dependence. Our findings show that both KIBS and R&D exercise direct positive effects on the creation of new industry specialisations and that professional-KIBS and public R&D impact negatively on the relatedness of new specialisations, while private R&D does so positively.

Suggested Citation

  • Jeroen Content & Nicola Cortinovis & Koen Frenken & Jacob Jordaan, 2022. "The roles of KIBS and R&D in the industrial diversification of regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 29-64, February.
    • Handle: RePEc:spr:anresc:v:68:y:2022:i:1:d:10.1007_s00168-021-01068-9
    DOI: 10.1007/s00168-021-01068-9
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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
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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