() and Martin Andersson
Sofia Wixe: Centre for Entrepreneurship and Spatial Economics (CEnSE), Jönköping International Business School, Postal: P.O.Box 1026, , 551 11 Jönköping, , Sweden.
Martin Andersson: Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University
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 growth.
29 pages, November 28, 2013
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