Related variety and regional growth in Spain

This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995–2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure...

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Published in:	Papers in regional science Vol. 91; no. 2; pp. 241 - 256
Main Authors:	Boschma, Ron, Minondo, Asier, Navarro, Mikel
Format:	Journal Article
Language:	English
Published:	Oxford, UK Blackwell Publishing Ltd 01.06.2012 Wiley-Blackwell Springer
Subjects:	Bgi / Prodig Cluster analysis D62 Determinants Economic growth Growth rates Human geography O18 Political and economic geography Porter's cluster product proximity R11 Regional development Regional economy and planning regional growth Regions Related variety Spain Spain Industry Regional economy Industrial branch Economic growth Indicator
ISSN:	1056-8190, 1435-5957
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Abstract	This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995–2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure revealed relatedness between industries. The first method is based on Porter's cluster classification while the second method uses the proximity index proposed by Hidalgo et al. Our analyses show that Spanish provinces with a wide range of related industries tend to show higher economic growth rates, once we control for other determinants of growth. Este artículo investiga si la variedad relacionada, entre otros tipos de externalidades espaciales, afectó el crecimiento regional en España a nivel NUTS 3 durante el periodo 1995‐2007. Hallamos pruebas de que la variedad relacionada influye en el crecimiento entre regiones, especialmente al utilizar dos métodos nuevos que miden el grado de conexión manifiesto entre industrias. El primer método está basado en la clasificación de conglomerados de Porter, mientras que el segundo método utiliza el índice de proximidad propuesto por Hidalgo et al. Nuestros análisis muestran que las provincias españolas con un amplio rango de industrias relacionadas tienden a mostrar tasas de crecimiento económico más altas, una vez que se logra controlar otros factores determinantes del crecimiento.
AbstractList	This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995-2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure revealed relatedness between industries. The first method is based on Porter's cluster classification while the second method uses the proximity index proposed by Hidalgo et al. Our analyses show that Spanish provinces with a wide range of related industries tend to show higher economic growth rates, once we control for other determinants of growth. Reprinted by permission of Blackwell Publihing This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the period 1995–2007. We found evidence that related variety matters for growth across regions, especially when using two new methods that measure revealed relatedness between industries. The first method is based on Porter's cluster classification while the second method uses the proximity index proposed by Hidalgo et al. Our analyses show that Spanish provinces with a wide range of related industries tend to show higher economic growth rates, once we control for other determinants of growth. Este artículo investiga si la variedad relacionada, entre otros tipos de externalidades espaciales, afectó el crecimiento regional en España a nivel NUTS 3 durante el periodo 1995‐2007. Hallamos pruebas de que la variedad relacionada influye en el crecimiento entre regiones, especialmente al utilizar dos métodos nuevos que miden el grado de conexión manifiesto entre industrias. El primer método está basado en la clasificación de conglomerados de Porter, mientras que el segundo método utiliza el índice de proximidad propuesto por Hidalgo et al. Nuestros análisis muestran que las provincias españolas con un amplio rango de industrias relacionadas tienden a mostrar tasas de crecimiento económico más altas, una vez que se logra controlar otros factores determinantes del crecimiento.
Author	Boschma, Ron Minondo, Asier Navarro, Mikel
Author_xml	– sequence: 1 givenname: Ron surname: Boschma fullname: Boschma, Ron organization: Urban and Regional Research Center Utrecht (URU), Department of Economic Geography, Faculty of Geosciences, Utrecht University, PO Box 80.115, NL-3508 TC Utrecht, The Netherlands (e-mail: r.boschma@geo.uu.nl) – sequence: 2 givenname: Asier surname: Minondo fullname: Minondo, Asier organization: Deusto University, Deusto Business School, Mundaiz 50 20012 Donostia, San Sebastian, Spain (e-mail: aminondo@deusto.es) – sequence: 3 givenname: Mikel surname: Navarro fullname: Navarro, Mikel organization: Orkestra, Basque Institute of Competitiveness, Mundaiz 50 20012 Donostia, San Sebastian, Spain (e-mail: mnavarro@orkestra.deusto.es)
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Notes	Asier Minondo acknowledges financial support from the Spanish Ministry of Science and Innovation (ECO2010-21643/ECON). istex:86C33B542C61CAC415B39D84AE5BDB1D19819934 ark:/67375/WNG-8LS5983T-6 ArticleID:PIRS387 Asier Minondo acknowledges financial support from the Spanish Ministry of Science and Innovation (ECO2010‐21643/ECON). ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23
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Regional Studies 41: 685-697 Minondo A (2010) Exports' productivity and growth across Spanish regions. Regional Studies 44: 568-577 Beaudry C, Schiffauerova A (2009) Who's right, Marshall or Jacobs? The localization versus urbanization debate. Research Policy 38: 318-337 Hidalgo CA, Klinger B, Barabási AL, Hausmann R (2007) The product space conditions the development of nations. Science 317: 482-487 Jacobs J (1969) The economy of cities. Vintage, New York. Feldman MP, Audretsch DB (1999) Innovation in cities: Science-based diversity, specialization and localized competition. European Economic Review 43: 409-429 Breshnahan TF, Trajtenberg M (1995) General purpose technologies: Engines of growth? Journal of Econometrics 65: 83-109 Porter ME (2003) The economic performance of regions. Regional Studies 37: 549-578 Rosenberg N, Frischtak R (1983) Long waves and economic growth: A critical appraisal. American Economic Review 73: 146-151 Fagerberg J (1988) International competitiveness. Economic Journal 98: 355-374 Bishop P, Gripaios P (2010) Spatial externalities, relatedness and sector employment growth in Great Britain. Regional Studies 44: 443-454 Breschi S, Lissoni F, Malerba F (2003) Knowledge-relatedness in firm technological diversification. Research Policy 32: 69-87 Glaeser EL, Kallal HD, Schinkmann JA, Shleifer A (1992) Growth in cities. Journal of Political Economy 100: 1126-1152 Boschma R, Eriksson R, Lindgren U (2009) How does labor mobility affect the performance of plants? The importance of relatedness and geographical proximity. Journal of Economic Geography 9: 169-190 Becattini G, Bellandi M, Ottati G dei, Sforzi F (2003) From industrial districts to local development: An itinerary of research. Edward Elgar, Cheltenham Porter ME (1998) Clusters and the new economics of competition. Harvard Business Review 76: 77-90 Marshall A (1890) Principles of economics. Macmillan, London Saviotti PP (1996) Technological evolution, variety and the economy. Edward Elgar, Cheltenham Van Oort FG (2004) Urban growth and innovation: Spatially bounded externalities in the Netherlands. Ashgate, Aldershot 1991; 1 2009; 85 2011 1992; 100 2010; 39 2009 1988; 98 2008 2007 2003; 37 2011; 11 1983; 73 1996 1999; 43 2005 2004 2003 2003; 32 2010; 44 2007; 317 1890 2000 1995; 65 2009; 9 1984 2011; 87 2007; 41 1998; 76 2009; 38 1969 1988 Beaudry (10.1111/j.1435-5957.2011.00387.x_b2) 2009; 38 Asheim (10.1111/j.1435-5957.2011.00387.x_b1) 2005 Becattini (10.1111/j.1435-5957.2011.00387.x_b3) 2003 Potter (10.1111/j.1435-5957.2011.00387.x_b28) 2011; 11 10.1111/j.1435-5957.2011.00387.x_b24 De Groot (10.1111/j.1435-5957.2011.00387.x_b11) 2009 Frenken (10.1111/j.1435-5957.2011.00387.x_b16) 2007; 41 Breshnahan (10.1111/j.1435-5957.2011.00387.x_b9) 1995; 65 Nooteboom (10.1111/j.1435-5957.2011.00387.x_b25) 2000 Dosi (10.1111/j.1435-5957.2011.00387.x_b12) 1988 Marshall (10.1111/j.1435-5957.2011.00387.x_b21) 1890 Neffke (10.1111/j.1435-5957.2011.00387.x_b23) 2011; 87 Breschi (10.1111/j.1435-5957.2011.00387.x_b8) 2003; 32 Boschma (10.1111/j.1435-5957.2011.00387.x_b6) 2011 Minondo (10.1111/j.1435-5957.2011.00387.x_b22) 2010; 44 Lambooy (10.1111/j.1435-5957.2011.00387.x_b20) 1984 Glaeser (10.1111/j.1435-5957.2011.00387.x_b17) 1992; 100 Jacobs (10.1111/j.1435-5957.2011.00387.x_b19) 1969 Rosenberg (10.1111/j.1435-5957.2011.00387.x_b30) 1983; 73 Porter (10.1111/j.1435-5957.2011.00387.x_b26) 1998; 76 Boschma (10.1111/j.1435-5957.2011.00387.x_b7) 2009; 85 Feldman (10.1111/j.1435-5957.2011.00387.x_b15) 1999; 43 Quatraro (10.1111/j.1435-5957.2011.00387.x_b29) 2010; 39 Saviotti (10.1111/j.1435-5957.2011.00387.x_b31) 1996 Bishop (10.1111/j.1435-5957.2011.00387.x_b4) 2010; 44 Hidalgo (10.1111/j.1435-5957.2011.00387.x_b18) 2007; 317 Boschma (10.1111/j.1435-5957.2011.00387.x_b5) 2009; 9 Carlsson (10.1111/j.1435-5957.2011.00387.x_b10) 1991; 1 Essletzbichler (10.1111/j.1435-5957.2011.00387.x_b13) 2007 Porter (10.1111/j.1435-5957.2011.00387.x_b27) 2003; 37 Van Oort (10.1111/j.1435-5957.2011.00387.x_b32) 2004 Fagerberg (10.1111/j.1435-5957.2011.00387.x_b14) 1988; 98
References_xml	– reference: Jacobs J (1969) The economy of cities. Vintage, New York. – reference: Boschma R, Iammarino S (2009) Related variety, trade linkages, and regional growth in Italy. Economic Geography 85: 289-311 – reference: Fagerberg J (1988) International competitiveness. Economic Journal 98: 355-374 – reference: Neffke F, Henning M, Boschma R (2011) How do regions diversify over time? Industry relatedness and the development of new growth paths in regions. Economic Geography 87: 237-265 – reference: Rosenberg N, Frischtak R (1983) Long waves and economic growth: A critical appraisal. American Economic Review 73: 146-151 – reference: Van Oort FG (2004) Urban growth and innovation: Spatially bounded externalities in the Netherlands. Ashgate, Aldershot – reference: Bishop P, Gripaios P (2010) Spatial externalities, relatedness and sector employment growth in Great Britain. Regional Studies 44: 443-454 – reference: Quatraro, F (2010) Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions. Research Policy 39: 1289-1302 – reference: Minondo A (2010) Exports' productivity and growth across Spanish regions. Regional Studies 44: 568-577 – reference: Feldman MP, Audretsch DB (1999) Innovation in cities: Science-based diversity, specialization and localized competition. European Economic Review 43: 409-429 – reference: Porter ME (1998) Clusters and the new economics of competition. Harvard Business Review 76: 77-90 – reference: Becattini G, Bellandi M, Ottati G dei, Sforzi F (2003) From industrial districts to local development: An itinerary of research. Edward Elgar, Cheltenham – reference: Carlsson B, Stankiewicz R (1991) On the nature, function and composition of technological systems. Journal of Evolutionary Economics 1: 93-118 – reference: Hidalgo CA, Klinger B, Barabási AL, Hausmann R (2007) The product space conditions the development of nations. Science 317: 482-487 – reference: Breschi S, Lissoni F, Malerba F (2003) Knowledge-relatedness in firm technological diversification. Research Policy 32: 69-87 – reference: Frenken K, van Oort FG, Verburg T (2007) Related variety, unrelated variety and regional economic growth. Regional Studies 41: 685-697 – reference: Boschma R, Eriksson R, Lindgren U (2009) How does labor mobility affect the performance of plants? The importance of relatedness and geographical proximity. Journal of Economic Geography 9: 169-190 – reference: Breshnahan TF, Trajtenberg M (1995) General purpose technologies: Engines of growth? Journal of Econometrics 65: 83-109 – reference: Marshall A (1890) Principles of economics. Macmillan, London – reference: Nooteboom B (2000) Learning and innovation in organizations and economies. Oxford University Press, Oxford – reference: Beaudry C, Schiffauerova A (2009) Who's right, Marshall or Jacobs? The localization versus urbanization debate. Research Policy 38: 318-337 – reference: Glaeser EL, Kallal HD, Schinkmann JA, Shleifer A (1992) Growth in cities. Journal of Political Economy 100: 1126-1152 – reference: Potter A, Watts DG (2011) Evolutionary agglomeration theory: Increasing returns, diminishing returns, and the industry life cycle. Journal of Economic Geography 11: 417-455 – reference: Porter ME (2003) The economic performance of regions. Regional Studies 37: 549-578 – reference: Saviotti PP (1996) Technological evolution, variety and the economy. Edward Elgar, Cheltenham – year: 2011 – volume: 317 start-page: 482 year: 2007 end-page: 487 article-title: The product space conditions the development of nations publication-title: Science – year: 2009 – volume: 39 start-page: 1289 year: 2010 end-page: 1302 article-title: Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions publication-title: Research Policy – volume: 11 start-page: 417 year: 2011 end-page: 455 article-title: Evolutionary agglomeration theory: Increasing returns, diminishing returns, and the industry life cycle publication-title: Journal of Economic Geography – volume: 37 start-page: 549 year: 2003 end-page: 578 article-title: The economic performance of regions publication-title: Regional Studies – year: 2005 – volume: 98 start-page: 355 year: 1988 end-page: 374 article-title: International competitiveness publication-title: Economic Journal – volume: 73 start-page: 146 year: 1983 end-page: 151 article-title: Long waves and economic growth: A critical appraisal publication-title: American Economic Review – volume: 1 start-page: 93 year: 1991 end-page: 118 article-title: On the nature, function and composition of technological systems publication-title: Journal of Evolutionary Economics – year: 2007 – year: 2003 – year: 1890 – year: 2000 – year: 1996 – volume: 85 start-page: 289 year: 2009 end-page: 311 article-title: Related variety, trade linkages, and regional growth in Italy publication-title: Economic Geography – volume: 76 start-page: 77 year: 1998 end-page: 90 article-title: Clusters and the new economics of competition publication-title: Harvard Business Review – volume: 100 start-page: 1126 year: 1992 end-page: 1152 article-title: Growth in cities publication-title: Journal of Political Economy – volume: 38 start-page: 318 year: 2009 end-page: 337 article-title: Who's right, Marshall or Jacobs? The localization versus urbanization debate publication-title: Research Policy – volume: 44 start-page: 568 year: 2010 end-page: 577 article-title: Exports' productivity and growth across Spanish regions publication-title: Regional Studies – volume: 9 start-page: 169 year: 2009 end-page: 190 article-title: How does labor mobility affect the performance of plants? The importance of relatedness and geographical proximity publication-title: Journal of Economic Geography – volume: 32 start-page: 69 year: 2003 end-page: 87 article-title: Knowledge‐relatedness in firm technological diversification publication-title: Research Policy – year: 1984 – volume: 44 start-page: 443 year: 2010 end-page: 454 article-title: Spatial externalities, relatedness and sector employment growth in Great Britain publication-title: Regional Studies – year: 1969 – year: 1988 – volume: 41 start-page: 685 year: 2007 end-page: 697 article-title: Related variety, unrelated variety and regional economic growth publication-title: Regional Studies – year: 2008 – volume: 65 start-page: 83 year: 1995 end-page: 109 article-title: General purpose technologies: Engines of growth? publication-title: Journal of Econometrics – year: 2004 – volume: 43 start-page: 409 year: 1999 end-page: 429 article-title: Innovation in cities: Science‐based diversity, specialization and localized competition publication-title: European Economic Review – volume: 87 start-page: 237 year: 2011 end-page: 265 article-title: How do regions diversify over time? Industry relatedness and the development of new growth paths in regions publication-title: Economic Geography – volume: 9 start-page: 169 year: 2009 ident: 10.1111/j.1435-5957.2011.00387.x_b5 article-title: How does labor mobility affect the performance of plants? The importance of relatedness and geographical proximity publication-title: Journal of Economic Geography doi: 10.1093/jeg/lbn041 – volume: 98 start-page: 355 year: 1988 ident: 10.1111/j.1435-5957.2011.00387.x_b14 article-title: International competitiveness publication-title: Economic Journal doi: 10.2307/2233372 – volume: 87 start-page: 237 year: 2011 ident: 10.1111/j.1435-5957.2011.00387.x_b23 article-title: How do regions diversify over time? Industry relatedness and the development of new growth paths in regions publication-title: Economic Geography doi: 10.1111/j.1944-8287.2011.01121.x – year: 2007 ident: 10.1111/j.1435-5957.2011.00387.x_b13 article-title: Diversity, stability and regional growth in the United States 1975–2002 – volume: 11 start-page: 417 year: 2011 ident: 10.1111/j.1435-5957.2011.00387.x_b28 article-title: Evolutionary agglomeration theory: Increasing returns, diminishing returns, and the industry life cycle publication-title: Journal of Economic Geography doi: 10.1093/jeg/lbq004 – volume: 37 start-page: 549 year: 2003 ident: 10.1111/j.1435-5957.2011.00387.x_b27 article-title: The economic performance of regions publication-title: Regional Studies doi: 10.1080/0034340032000108688 – year: 2005 ident: 10.1111/j.1435-5957.2011.00387.x_b1 article-title: The geography of innovation: Regional innovation systems – volume: 65 start-page: 83 year: 1995 ident: 10.1111/j.1435-5957.2011.00387.x_b9 article-title: General purpose technologies: Engines of growth? publication-title: Journal of Econometrics doi: 10.1016/0304-4076(94)01598-T – year: 2000 ident: 10.1111/j.1435-5957.2011.00387.x_b25 – volume: 39 start-page: 1289 year: 2010 ident: 10.1111/j.1435-5957.2011.00387.x_b29 article-title: Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions publication-title: Research Policy doi: 10.1016/j.respol.2010.09.005 – year: 2003 ident: 10.1111/j.1435-5957.2011.00387.x_b3 – volume: 41 start-page: 685 year: 2007 ident: 10.1111/j.1435-5957.2011.00387.x_b16 article-title: Related variety, unrelated variety and regional economic growth publication-title: Regional Studies doi: 10.1080/00343400601120296 – volume: 76 start-page: 77 year: 1998 ident: 10.1111/j.1435-5957.2011.00387.x_b26 article-title: Clusters and the new economics of competition publication-title: Harvard Business Review – year: 1988 ident: 10.1111/j.1435-5957.2011.00387.x_b12 article-title: Technical change and international trade – volume: 43 start-page: 409 year: 1999 ident: 10.1111/j.1435-5957.2011.00387.x_b15 article-title: Innovation in cities: Science‐based diversity, specialization and localized competition publication-title: European Economic Review doi: 10.1016/S0014-2921(98)00047-6 – volume: 44 start-page: 443 year: 2010 ident: 10.1111/j.1435-5957.2011.00387.x_b4 article-title: Spatial externalities, relatedness and sector employment growth in Great Britain publication-title: Regional Studies doi: 10.1080/00343400802508810 – volume: 85 start-page: 289 year: 2009 ident: 10.1111/j.1435-5957.2011.00387.x_b7 article-title: Related variety, trade linkages, and regional growth in Italy publication-title: Economic Geography doi: 10.1111/j.1944-8287.2009.01034.x – year: 1984 ident: 10.1111/j.1435-5957.2011.00387.x_b20 article-title: The regional ecology of technological change – volume: 44 start-page: 568 year: 2010 ident: 10.1111/j.1435-5957.2011.00387.x_b22 article-title: Exports' productivity and growth across Spanish regions publication-title: Regional Studies doi: 10.1080/00343400902783255 – year: 2009 ident: 10.1111/j.1435-5957.2011.00387.x_b11 article-title: Agglomeration externalities, innovation and regional growth: Theoretical perspectives and meta‐analysis – volume: 100 start-page: 1126 year: 1992 ident: 10.1111/j.1435-5957.2011.00387.x_b17 article-title: Growth in cities publication-title: Journal of Political Economy doi: 10.1086/261856 – year: 2004 ident: 10.1111/j.1435-5957.2011.00387.x_b32 – volume: 32 start-page: 69 year: 2003 ident: 10.1111/j.1435-5957.2011.00387.x_b8 article-title: Knowledge‐relatedness in firm technological diversification publication-title: Research Policy doi: 10.1016/S0048-7333(02)00004-5 – year: 1996 ident: 10.1111/j.1435-5957.2011.00387.x_b31 – volume: 1 start-page: 93 year: 1991 ident: 10.1111/j.1435-5957.2011.00387.x_b10 article-title: On the nature, function and composition of technological systems publication-title: Journal of Evolutionary Economics doi: 10.1007/BF01224915 – ident: 10.1111/j.1435-5957.2011.00387.x_b24 – volume: 73 start-page: 146 year: 1983 ident: 10.1111/j.1435-5957.2011.00387.x_b30 article-title: Long waves and economic growth: A critical appraisal publication-title: American Economic Review – volume: 38 start-page: 318 year: 2009 ident: 10.1111/j.1435-5957.2011.00387.x_b2 article-title: Who's right, Marshall or Jacobs? The localization versus urbanization debate publication-title: Research Policy doi: 10.1016/j.respol.2008.11.010 – volume: 317 start-page: 482 year: 2007 ident: 10.1111/j.1435-5957.2011.00387.x_b18 article-title: The product space conditions the development of nations publication-title: Science doi: 10.1126/science.1144581 – year: 2011 ident: 10.1111/j.1435-5957.2011.00387.x_b6 article-title: Technological relatedness and regional branching – year: 1969 ident: 10.1111/j.1435-5957.2011.00387.x_b19 – year: 1890 ident: 10.1111/j.1435-5957.2011.00387.x_b21
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Snippet	This paper investigates whether related variety, among other types of spatial externalities, affected regional growth in Spain at the NUTS 3 level during the...
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SubjectTerms	Bgi / Prodig Cluster analysis D62 Determinants Economic growth Growth rates Human geography O18 Political and economic geography Porter's cluster product proximity R11 Regional development Regional economy and planning regional growth Regions Related variety Spain
Title	Related variety and regional growth in Spain
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