Regional Employment Growth, Shocks and Regional Industrial Resilience: A Quantitative Analysis of the Danish ICT Sector

Abstract

The resilience of regional industries to economic shocks has gained a lot of attention in evolutionary economic geography recently. This paper uses a novel quantitative approach to investigate the regional industrial resilience of the Danish ICT sector to the shock following the burst of the dot-com bubble. It is shown that regions characterised by small and young ICT service companies were more adaptable and grew more than others, while diversity and urbanisation increased the sensitivity to the business cycle after the shock. Different types of resilient regions are found: adaptively resilient, rigidly resilient, entrepreneurially resilient and nonresilient regions.

US Metropolitan Area Resilience: Insights from dynamic spatial panel estimation

“…The hypothesis that resilience to economic shocks is shaped by, and shapes, industrial structure, broadly defined, has been considered elsewhere in the literature (Quigley, 1998;Combes, 2000;Glaeser, 2005;Martin, 2012;Fingleton and Palombi, 2013;Doran and Fingleton, 2014;Glaeser et al, 2014;Holm and Østergaard, 2015). For example Capasso et al (2014) highlight the importance of industry structure in explaining the evolution of regions' growth paths over time, while Holm and Østergaard (2015) emphasise the importance of regional industrial structure in explaining a region's susceptibility to shocks and its ability to better recover following shocks.…”

“…For example Capasso et al (2014) highlight the importance of industry structure in explaining the evolution of regions' growth paths over time, while Holm and Østergaard (2015) emphasise the importance of regional industrial structure in explaining a region's susceptibility to shocks and its ability to better recover following shocks. Likewise the differentiated impact of industry structure on resilience has been discussed by Martin et al (2016) as a possible explanatory factor for regional divergence, with a region's ability to resist and recover from shocks impacting its long run growth path.…”

Resilience challenges for textile enterprises in a transitional economy and regional trade perspective - a study of Kyrgyz conditions

“…Such regional industrial resilience is essential for developing adaptive capability to adjust and overcome various internal and external shocks (McGlade et al, 2006;Holm and Østergaard, 2013). Only a few researchers have analysed aspects of regional industrial resilience (cf, Martin, 2012;Fingleton et al, 2012); while Fingleton et al (2012) analysed the impact of economic recessions on future employment growth in UK regions, Martin (2012) has provided the theoretical argumentation for how adaptive resilience and its antecedents depend upon the level of new firm formation, firm innovativeness, firms' willingness to change, diversity of the regional economic structure, and availability of skilled labour.…”

“…Only a few researchers have analysed aspects of regional industrial resilience (cf, Martin, 2012;Fingleton et al, 2012); while Fingleton et al (2012) analysed the impact of economic recessions on future employment growth in UK regions, Martin (2012) has provided the theoretical argumentation for how adaptive resilience and its antecedents depend upon the level of new firm formation, firm innovativeness, firms' willingness to change, diversity of the regional economic structure, and availability of skilled labour. Holm and Østergaard (2013) have recently provided an account of regional industrial resilience of the Danish ICT sector that had experienced the shocks of the dot-com bubble and economic recession of 2000-2001. Moreover, regional resilience might also be higher in regions with large firms, as they are more resistant to shocks, as compared to regions with mostly start-ups and SMEs (Holm and Østergaard, 2013).…”

“…Holm and Østergaard (2013) have recently provided an account of regional industrial resilience of the Danish ICT sector that had experienced the shocks of the dot-com bubble and economic recession of 2000-2001. Moreover, regional resilience might also be higher in regions with large firms, as they are more resistant to shocks, as compared to regions with mostly start-ups and SMEs (Holm and Østergaard, 2013). At the industry level, resilience is presumably characterised by how the region's industrial, technological, labour force and institutional structures adapt to the changing competitive technological and market pressure and shocks (Simmie and Martin, 2009).…”