Neighbour regions as the source of new industries

Boschma, Ron; Martín, Víctor; Minondo, Asier

doi:10.1111/pirs.12215

Cited by 60 publications

(65 citation statements)

References 53 publications

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“…Ezcurra and Rios (2015) in turn took a sample of 272 European regions from 1991 to 2001 and used spatial econometric techniques to demonstrate the negative correlation, which is partly influenced by the volatility of spatial spillovers of neighbouring regions. Such spillover effects are recently confirmed by Boschma, Martin, and Minondo (2017) using a data set on the development of new industries in US states during 2000-2012. As neighbour regions are the source of new industries, regions specialize similarly and share the same economic instability and industrial diversification opportunities.…”

Section: Industrial Diversification Of Gross Value Addedmentioning

confidence: 75%

Growth‐instability frontier and industrial diversification: Evidence from European gross value added

Hafner

2019

Papers in Regional Science

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The paper applies the modern portfolio theory and stochastic frontier analysis to gross value added growth rates in Europe and presents evidence of convex growth‐instability frontiers. Using their national accounts by economic activity, numerical simulations of gross value added shares show that in 2011, industry portfolios were below Markowitz's efficient frontier and that rearranging the share of economic activities lead to efficiency gains in terms of lower output instability and higher growth rates. Gross value added in EU countries in general, and core countries in particular, should be contributed by the “service provider” and “financial activities” sectors, while optimal industry portfolios of periphery countries are more diversified. Stochastic frontier analysis confirms the convex growth‐instability frontiers and finds that technical inefficiencies are explained by differences in the growth rate of labour and the degree of industrial diversification. Getting more efficient is a combination of country characteristics and sector specifics, where efficiency gains are inversely related to industrial diversification during economic development. Reported results are robust to model specifications and data restrictions.

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Section: Industrial Diversification Of Gross Value Addedmentioning

confidence: 75%

Growth‐instability frontier and industrial diversification: Evidence from European gross value added

Hafner

2019

Papers in Regional Science

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“…Of course, the transmission of knowledge is heavily constrained by geographical distance, and tends to take place among regions that are geographically proximate to one another (Boschma et al . ). Bahar et al .…”

Section: Introductionmentioning

confidence: 97%

“…Boschma et al . () have concluded that industrial structures of neighbouring states in the US are more similar to each other.…”

Section: Introductionmentioning

confidence: 98%

“…However, Boschma et al . () have pointed out that studies on industrial diversification have focused almost completely on the role of technological relatedness and local capabilities, and treated regions as self‐contained entities. In reality, a region’s border can be porous, and regions are often interconnected with each other through inter‐regional trade (Falvey et al .…”

Section: Introductionmentioning

confidence: 99%

“…After analysing the effect of neighbours on regional industrial diversification, at the end of their paper, Boschma et al . () have claimed that one research challenge in this strand of literature is how to include the role of institutions that have been confirmed to have an impact on diversification at the national level. The first contribution of this paper is thus to incorporate institutions in our analytical framework and seek to capture the effect of institutional proximity between regions.…”

Section: Introductionmentioning

confidence: 99%

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Proximity Matters: Inter‐Regional Knowledge Spillovers and Regional Industrial Diversification in China

Zhu

et al. 2018

Tijd voor Econ & Soc Geog

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The effects of knowledge spillovers from neighbouring regions on regional industrial diversification should not be overlooked. Here we are referring to not only intra-industry knowledge spillovers from neighbouring regions, but also the spread of knowledge from related industries in neighbouring regions. This paper also develops an analytical framework that pays more attention to the role of institutional proximity between regions and how it is associated with geographical and cognitive proximity, and acknowledges that institutional proximity may generate asymmetric effects in the process of inter-regional knowledge spillovers. Using the Chinese custom database during 2002-11, we confirm that knowledge spillovers from neighbouring regions play a key role in regional industrial diversification. More importantly, inter-regional knowledge spillovers are likely to occur more efficiently if two regions have similar institutional contexts. It is also shown that institutional proximity could generate asymmetric effects in inter-regional knowledge spillovers.

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Knowledge Flows, Knowledge Externalities, and Regional Economic Development

Karlsson¹,

Gråsjö²

2018

Handbook of Regional Science

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New knowledge generated by an economic agent in a region will tend over time to flow to other economic agents in the same region but also to economic agents in other regions. It is quite common in the literature to use the concept of knowledge spillovers for such knowledge flows, irrespective of whether they are intended or non-intended. The potential for intra-regional knowledge spillover effects depends on the volume and character of the generation on new knowledge in each region as well as of the general characteristics of the individual regional economic milieu, i.e., those location attributes, which are regionally trapped and which include how well integrated it is with other regions. The larger this potential, the higher the probability that firms dependent upon knowledge spillovers will locate there and the higher probability that entrepreneurs will take advantage of this potential to launch innovations and to create new knowledge-based firms. To the extent that firms and entrepreneurs can enjoy these knowledge spillovers, they represent an externality or more specifically a knowledge externality in the regional economy. Great importance is in the literature attributed to knowledge spillovers and knowledge externalities as drivers of regional economic development. Some authors, for example, claim that regional variations in localised knowledge spillovers are one of the main reasons behind regional variations in innovation performance. Against this background, the purpose of this chapter is, based upon a general characterization of knowledge flows, to analyse the character of knowledge externalities and, in particular, their sources, their economic nature, their recipients, their mechanisms and channels, their geographic reach, and their economic consequences generally and for regional economic development in particular.

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Neighbour regions as the source of new industries

Cited by 60 publications

References 53 publications

Growth‐instability frontier and industrial diversification: Evidence from European gross value added

Growth‐instability frontier and industrial diversification: Evidence from European gross value added

Proximity Matters: Inter‐Regional Knowledge Spillovers and Regional Industrial Diversification in China

Knowledge Flows, Knowledge Externalities, and Regional Economic Development

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