Innovation, industrial dynamics and regional inequalities

Ron Boschma (r.a.boschma@uu.nl), Martina Pardy and Sergio Petralia

Chapter 9 in Handbook of Industrial Development, 2023, pp 151-164 from Edward Elgar Publishing

Abstract: While regional policy in the EU aims to combine smart and inclusive growth, there is increasing awareness that the two objectives may not necessarily go together. This chapter explores the relationship between innovation, industrial dynamics and regional inequality. Studies show there is an increasing tendency of innovations and complex activities to concentrate in a few places, especially advanced urban regions. And technological change like AI has a propensity to reinforce this pattern through its effects on regional labor markets. At the same time, more research is needed to unravel this complex relationship. There is a need to collect more systematic evidence how industrial dynamics increase or decrease inter-regional and intra-regional inequalities, and how complexity levels of industries have an effect on that. Future research should also focus on the impact of AI and automation on routine and non-routine occupations/tasks, and how these labour market dynamics affect regional inequality.

Keywords: Development Studies; Economics and Finance; Geography; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2023
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