Capabilities, diversification & economic dynamics in European Regions

Jan Fagerberg and Martin Srholec

No 20210615, Working Papers on Innovation Studies from Centre for Technology, Innovation and Culture, University of Oslo

Abstract: What determines the differences in economic performance across European regions? In addressing this question, this paper takes inspiration from two different approaches. One approach highlights the role of capability-building, of a technological or social nature, while another perspective emphasizes the potential advantages of proximity and, hence, a relatively diversified economic structure, for regional economic performance. The paper argues that the impacts of capability-building and diversification on regional economic development need to be assessed jointly. Using information for 261 regions at NUTS2 level in 27 European countries in the 2000s, novel data sources are exploited to construct measures of technological and social capabilities, which are combined with indicators of related and unrelated variety in the analysis of regional economic dynamics. The results suggest that capability-building play a key role in regional economic development while the results for diversification are more mixed.

Pages: 28 pages
Date: 2021-06
New Economics Papers: this item is included in nep-eur, nep-geo, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sv.uio.no/tik/InnoWP/tik_working_paper_20210615.pdf (application/pdf)

Related works:
Journal Article: Capabilities, diversification & economic dynamics in European Regions (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:tik:inowpp:20210615

Access Statistics for this paper

More papers in Working Papers on Innovation Studies from Centre for Technology, Innovation and Culture, University of Oslo Contact information at EDIRC.
Bibliographic data for series maintained by H&kon Normann ().