Related and unrelated variety as regional drivers of enterprise productivity and innovation: A multilevel study

Jarle Aarstad, Olav A. Kvitastein and Stig-Erik Jakobsen

Research Policy, 2016, vol. 45, issue 4, 844-856

Abstract: We conduct multilevel analyses of Norwegian data and find that related industrial variety is a positive regional driver of enterprise innovation. Unrelated variety is a negative regional driver of enterprise productivity. This implies that regions with high levels of related variety and low levels of unrelated variety optimize enterprise performance. We argue that regional specialization is a two-dimensional construct inversely associated with related and unrelated variety. Thus, a specialized region (low in unrelated variety) is in fact a driver of enterprise productivity. In addition, we find that population density is another regional driver of enterprise productivity.

Keywords: Related variety; Unrelated variety; Productivity; Innovation; Specialization; Population density (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (69)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:45:y:2016:i:4:p:844-856

DOI: 10.1016/j.respol.2016.01.013

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