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Local variety and innovation performance in the EU textile and clothing industry

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  • Valentina Giannini
  • Donato Iacobucci
  • Francesco Perugini

Abstract

A large body of the literature showed that related variety at local level is more relevant than unrelated variety for explaining the innovation performance of firms. Knowledge relatedness is usually measured by considering activities within the same industry (i.e. the same two-digit code) while activities in different industries are associated with unrelated variety. This approach is challenged by the increasing relevance of transversal technologies, i.e. technologies that are developed and applied in rather different sectors. As a result, between industry variety (i.e. unrelated variety) is expected to be more important than within industry variety (i.e. related variety). We test this hypothesis by examining the innovation activities of firms in the textile and clothing industry. The innovation model of these firms is characterized by low investment in R&D, little capabilities for autonomous innovation and dependence from knowledge suppliers belonging to different sectors. The empirical analysis, carried out over the 1996–2014 period at the EU NUTS2 level, shows that between industry variety has a greater impact than within industry variety for the innovative performance of firms.

Suggested Citation

  • Valentina Giannini & Donato Iacobucci & Francesco Perugini, 2019. "Local variety and innovation performance in the EU textile and clothing industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(8), pages 841-857, November.
    • Handle: RePEc:taf:ecinnt:v:28:y:2019:i:8:p:841-857
    DOI: 10.1080/10438599.2019.1571668
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    Cited by:

    1. Fromhold-Eisebith, Martina & Marschall, Philip & Peters, Robert & Thomes, Paul, 2021. "Torn between digitized future and context dependent past – How implementing ‘Industry 4.0’ production technologies could transform the German textile industry," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    2. Niccolò Innocenti & Francesco Capone & Luciana Lazzeretti & Sergio Petralia, 2022. "The role of inventors’ networks and variety for breakthrough inventions," Papers in Regional Science, Wiley Blackwell, vol. 101(1), pages 37-57, February.
    3. Andrea Filippetti & Petros Gkotsis & Antonio Vezzani & Antonio Zinilli, 2020. "Are innovative regions more resilient? Evidence from Europe in 2008–2016," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 807-832, October.
    4. Roberto Antonietti & Chiara Burlina, 2023. "Exploring the entropy-complexity nexus. Evidence from Italy," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 257-283, April.

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