Explaining the dynamics of relatedness: the role of co-location and complexity

Sandor Juhasz, Tom Broekel () and Ron Boschma ()

No 2032, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: Relatedness has become a key concept for studying the diversification of firms, regions, and countries. However, studies tend to treat relatedness as being time-invariant or, alternatively, consider its evolution as exogenously given. This study argues that relatedness is inherently dynamic and endogenous to technological and economic developments. Using patent data, we test the extent to which relatedness between technologies developed along co-location and differences in technological complexity in the period 1980-2010. Our results show that co-located technologies are more likely to become related over time. Moreover, our results suggest that co-location and complexity of technologies are conducive to the intensification of relatedness over time.

Keywords: co-agglomeration; complexity; Geography; relatedness (search for similar items in EconPapers)
JEL-codes: O33 R12 (search for similar items in EconPapers)
Date: 2020-08, Revised 2020-08
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (1)

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Journal Article: Explaining the dynamics of relatedness: The role of co‐location and complexity (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:2032

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