Journal
ECONOMIC GEOGRAPHY
Volume 97, Issue 2, Pages 187-207Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00130095.2021.1920390
Keywords
regional diversification patterns and trajectories; KETs; ordered logit
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This study proposes a new approach to regional diversification, investigating regions' ability to follow different diversification trajectories. It finds that knowledge of Key Enabling Technologies (KETs) plays a crucial role in enabling regions to engage in unrelated diversification trajectories.
We propose a new approach to regional diversification that, going beyond relatedness, investigates regions' capacity to move along different diversification trajectories. By integrating evolutionary economic geography and transition studies, we focus on the patterns of regional diversification that emerge by retaining its place and path dependence and argue that local endowment of Key Enabling Technologies (KETs) has a role in their sequential unfolding for escaping lock-in situations. Combining patent and employment data for Italian NUTS-3 regions, we run a series of ordered logit models and find that regions with more KETs knowledge are actually better able to engage in unrelated diversification trajectories but only when KETs are used by other local technologies.
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