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Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations

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  • Jing Xiao
  • Ron Boschma
  • Martin Andersson

Abstract

This paper adopts an evolutionary framework to the study of industrial resilience. We present a study on European regions and assess the extent to which the capacity of their economies to develop new industrial specializations is affected by the global economic crisis of 2008. We compare levels of industry entry in European regions in the period 2004-2008 and 2008-2012, i.e. before and after a major economic disturbance. Resilient regions are defined as regions that show high entry levels or even increase their entry levels after the shock. Industrial relatedness and population density exhibit a positive effect on regional resilience, especially on the entry of knowledge-intensive industries after the shock, while related variety per se shows no effect on regions being resilient or not.

Suggested Citation

  • Jing Xiao & Ron Boschma & Martin Andersson, 2016. "Resilience in the European Union: the effect of the 2008 crisis on the ability of regions in Europe to develop new industrial specializations," Papers in Evolutionary Economic Geography (PEEG) 1608, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2016.
    • Handle: RePEc:egu:wpaper:1608
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    More about this item

    Keywords

    regional resilience; evolutionary economic geography; new growth paths; related variety; industrial relatedness;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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