Neighbor regions as the source of new industries

Ron Boschma (), Víctor Martín and Asier Minondo ()

No 1508, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: The development of new industries demands access to local capabilities. Little attention has yet been paid to the role of spillovers from neighbor regions for industrial diversification, nor has the role of network linkages between neighbor regions been investigated. As the spread of capabilities has a strong geographical bias, we expect regions to develop new industries in which their neighbor regions are specialized. To test this hypothesis, we analyze the development of new industries in US states during the period 2000-2012. We show that an US state has a higher probability of developing a comparative advantage in a new industry if a neighbor state is specialized in that industry. We also show that neighbor US states have more similar export structures. This export similarity seems to be explained by higher social connectivity between neighbor states, as embodied in their bilateral migration patterns.

Keywords: new industries; regional branching; diversification; knowledge spillovers; US; regions; exports (search for similar items in EconPapers)
JEL-codes: N94 O14 R11 (search for similar items in EconPapers)
Date: 2015-03, Revised 2015-03
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Neighbour regions as the source of new industries (2017)
Working Paper: Neighbor regions as the source of new industries (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1508

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