The nonlinear effect of technological diversification on regional productivity: implications for growth and Smart Specialisation strategies

Silvia Rocchetta, Raquel Ortega-Argiles and Dieter Franz Kogler

Open Access publications from Research Repository, University College Dublin

Abstract: With a sample of 268 EU regions and with the use of multilevel modelling, we demonstrate that different measures of technological diversification measured as coherence and entropyvariety, have different nonlinear effects on regional productivity growth and that these nonlinear effects work in opposite directions to each other. Our analysis shows that higher regional productivity returns can be found in regions investing both around their existing technological capabilities as well as in more distant knowledge domains. Our findings have significant implications for understanding regional productivity growth processes and the implementation of Smart Specialisation Strategies.

Keywords: Regional productivity; Technological structure; Relatedness; Diversification; Smart specialisation (search for similar items in EconPapers)
JEL-codes: O30 R11 R58 (search for similar items in EconPapers)
Date: 2023-04
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