The Emergence of New Industries at the Regional Level in Spain: A Proximity Approach Based on Product Relatedness

How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities tha...

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Published in:Economic geography Vol. 89; no. 1; pp. 29 - 51
Main Authors: Boschma, Ron, Minondo, Asier, Navarro, Mikel
Format: Journal Article
Language:English
Published: Worcester, MA Taylor & Francis 01.01.2013
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ISSN:0013-0095, 1944-8287
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Abstract How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities that are available at the regional level play a larger role than do capabilities that are available at the country level for the development of new industries. To test this hypothesis, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than does proximity to the national industrial structure. This finding suggests that capabilities at the regional level enable the development of new industries.
AbstractList How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities that are available at the regional level play a larger role than do capabilities that are available at the country level for the development of new industries. To test this hypothesis, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than does proximity to the national industrial structure. This finding suggests that capabilities at the regional level enable the development of new industries.
How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities that are available at the regional level play a larger role than do capabilities that are available at the country level for the development of new industries. To test this hypothesis, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than does proximity to the national industrial structure. This finding suggests that capabilities at the regional level enable the development of new industries. Reprinted by permission of Economic Geography, Clark University
How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities that are available at the regional level play a larger role than do capabilities that are available at the country level for the development of new industries. To test this hypothesis, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than does proximity to the national industrial structure. This finding suggests that capabilities at the regional level enable the development of new industries. [PUBLICATION ABSTRACT]
How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions are specialized. Since the spread of capabilities occurs through mechanisms that have a strong regional bias, we expect that capabilities that are available at the regional level play a larger role than do capabilities that are available at the country level for the development of new industries. To test this hypothesis, we analyze the emergence of new industries in 50 Spanish regions at the NUTS 3 level in the period 1988-2008. We calculate the capability-distance between new export products and existing export products in Spanish regions and provide econometric evidence that regions tend to diversify into new industries that use similar capabilities as existing industries in these regions. We show that proximity to the regional industrial structure plays a much larger role in the emergence of new industries in regions than does proximity to the national industrial structure. This finding suggests that capabilities at the regional level enable the development of new industries. Adapted from the source document.
Author Boschma, Ron
Minondo, Asier
Navarro, Mikel
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  givenname: Mikel
  surname: Navarro
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  organization: Orkestra-Basque Institute of Competitiveness University of Deusto
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Proximity
Industrial structure
Index
Industrial branch
Diversification
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Snippet How do regions diversify over time? Inspired by recent studies, we argue that regions diversify into industries that make use of capabilities in which regions...
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StartPage 29
SubjectTerms 1988-2008
Bgi / Prodig
Bias
capabilities
Capability-Ansatz
diversification
Diversifikation
Econometrics
Economic expansion
Economic geography
Economic policy
Exports
Human geography
Industrial development
Industrial economics
Industrial structure
Industry
Market structure
new industries
Pain
Political and economic geography
Proximity
proximity index
regional branching
Regional development
Regional economy and planning
Regionale Wirtschaftsstruktur
Regionales Cluster
Regions
Relatedness
Spain
Spanien
Studies
Title The Emergence of New Industries at the Regional Level in Spain: A Proximity Approach Based on Product Relatedness
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Volume 89
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