Skill capabilities behind the scenes. The role of occupational portfolio in regional industrial evolution

Jing Chen, Xiaojing Li, Xiaoqi Zhou and Rongjun Ao

No 2508, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: An increasing number of studies confirm that regional diversification is path-dependent, with new industries building on pre-existing ones. However, these studies typically overlook the role of skill capabilities and the interactions between skills and industries. In this research, based on the concept of industry-occupation cross-relatedness, the influence of skill capabilities on industrial diversification across Chinese regions was investigated. Findings indicate that regions can diversify into skill-related activities following a skill path-dependent process. Furthermore, a theoretical framework integrating industry-occupation cross- relatedness and economic complexity was introduced, which enabled the adoption of various diversification strategies based on regional skill capabilities.

Keywords: Industrial evolution; cross-relatedness; path dependence; skill capabilities; Chinese regions (search for similar items in EconPapers)
JEL-codes: J24 O18 R11 R23 (search for similar items in EconPapers)
Date: 2025-04, Revised 2025-04
New Economics Papers: this item is included in nep-lma
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