TAILIEUCHUNG - The impact of related variety on regional employment growth in Finland 1993- 2006: high-tech versus medium/low-tech

Economic development professionals can use this strategic framework in a variety of different ways. As a first step, it is useful in mapping current regional economic development activities. In most regions, these activities are spread across a variety of different organizations. Leaders of these organizations often do not communicate effectively with each other. By listing each organization’s major focus and activities on the grid, important patterns and gaps emerge. So, for example, workforce development activities—STEM education at the local high school, adult literacy initiatives, retraining initiatives for displaced workers, on the job training in lean manufacturing—naturally fit within the Brainpower. | Papers in Evolutionary Economic Geography The impact of related variety on regional employment growth in Finland 19932006 high-tech versus medium low-tech Matté Hartog Ron Boschma and Markku Sotarauta Cs Utrecht University Jiiis Urban 8i Regional research centre Utrecht http peeg The impact of related variety on regional employment growth in Finland 1993-2006 high-tech versus medium low-tech Matté Hartog Ron Boschma and Markku Sotarauta Urban and Regional research centre Utrecht Faculty of Geosciences Utrecht University . Box 80115 3508 TC Utrecht The Netherlands Research Unit for Urban and Regional Development Studies University of Tampere FI-33014 University of Tampere Finland Abstract This paper investigates the impact of related variety on regional employment growth in Finland between 1993 and 2006 by means of a dynamic panel regression model. We find that related variety in general has no impact on growth. Instead after separating related variety among low-and-medium tech sectors from related variety among high-tech sectors we find that only the latter affects regional growth. Hence we find evidence that the effect of related variety on regional employment growth is conditioned by the technological intensity of the local sectors involved. JEL Codes D62 O18 R11 1 Introduction In the context of the current economic crisis the question of what kind of economic composition in regions is best for regional employment growth is more than ever prominent on the political and scientific agenda. Till recently the key question was whether regions should be mainly specialized or whether the economic composition of regions should be 1 mainly diversified. Especially the importance of regional diversity or Jacobs externalities has been subject to much empirical work from the 1990s onwards Glaeser et al. 1992 Van Oort 2004 with mixed results so far. That is studies have shown positive negative or no impact of a diversified industrial mix in .

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