KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
Which Types of Relatedness Matter in Regional Growth? - Industry, occupation and education.
() and Martin Andersson
Abstract: This paper provides a conceptual discussion of
relatedness, which suggests a focus on individuals as a complement to firms
and industries. The empirical relevance of the main arguments are tested by
estimating the effects of related and unrelated variety in education and
occupation among employees, as well as in industries, on regional growth.
We show that for regional productivity growth, occupational and educational
related variety matter over and above industry relatedness. This supports
the conceptual discussion put forward. The potential of productive
interactions between employees in a region is greater when there is related
variety in their ‘knowledge base’. We also find that related variety in
industries is positive for employment growth but negative for productivity
Keywords: Relatedness; variety; occupation; education; regional growth; (follow links to similar papers)
JEL-Codes: J24; R12; R23; (follow links to similar papers)
29 pages, November 28, 2013
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