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What kind of related variety for long-term regional growth?

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  • Kadri Kuusk
  • Mikhail Martynovich

Abstract

We investigate the evolution of relatedness linkages between Swedish industries during five sub-periods between 1991 and 2010. Distinguishing between the stable ties (present in all sub- periods) and non-stable ties (emerging, disappearing, etc), we demonstrate that the relatedness linkages change considerably over time. Furthermore, we show that the changes in the relatedness matrix matter for the impact of related variety on regional employment growth. We argue, therefore, that the relatedness linkages have a ?best before date? and that the choice of what relatedness indicator to apply and how deserves more consideration than it is usually given.

Suggested Citation

  • Kadri Kuusk & Mikhail Martynovich, 2018. "What kind of related variety for long-term regional growth?," Papers in Evolutionary Economic Geography (PEEG) 1834, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2018.
    • Handle: RePEc:egu:wpaper:1834
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    File URL: http://econ.geo.uu.nl/peeg/peeg1834.pdf
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    References listed on IDEAS

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    Cited by:

    1. Markus Grillitsch & Mikhail Martynovich & Rune Dahl Fitjar & Silje Haus-Reve, 2021. "The black box of regional growth," Journal of Geographical Systems, Springer, vol. 23(3), pages 425-464, July.
    2. Mikhail Martynovich & Josef Taalbi, 2020. "Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010," Papers in Evolutionary Economic Geography (PEEG) 2015, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2020.
    3. 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.
    4. Grillitsch, Markus & Martynovich, Mikhail & Dahl Fitjar, Rune & Haus-Reve, Silje, 2019. "Why bother about region-specific growth patterns and how to identify them?," Papers in Innovation Studies 2019/10, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    relatedness; evolution; related variety; regional growth; skill relatedness; Sweden;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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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