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Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010

Martynovich, Mikhail LU orcid and Taalbi, Josef LU (2020) In Papers in evolutionary economic geography 20(15).
Abstract
This study investigates how related variety in the regional employment mix affects the innovation output of a region. Departing from the idea of recombinant innovation, previous research has arguedthat related variety enhances regional innovation as inter-industry knowledge spillovers occur more easily between different but cognitively similar industries. This study combines a novel dataset and related variety measures based on network theory, which allows a more nuanced perspective on the relationship between related variety and regional innovation.The principal novelty of the paper lies in employing new data on product innovations commercialised by Swedish manufacturing firms between 1970 and 2013. In... (More)
This study investigates how related variety in the regional employment mix affects the innovation output of a region. Departing from the idea of recombinant innovation, previous research has arguedthat related variety enhances regional innovation as inter-industry knowledge spillovers occur more easily between different but cognitively similar industries. This study combines a novel dataset and related variety measures based on network theory, which allows a more nuanced perspective on the relationship between related variety and regional innovation.The principal novelty of the paper lies in employing new data on product innovations commercialised by Swedish manufacturing firms between 1970 and 2013. In this respect, it allows a direct measure of regionalinnovation output as compared to patent measures, usually employed in similar studies. The second contribution of this paper is that we employ network-topologybased measuresof related variety that allowus to measure relatedness as the recombination rather than direct flow of knowledge. We argue that this measure comes closer to the notion of innovation as spurred by recombination and show that this measure is a superior predictor of innovation activity. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
Related variety, Relatedness, Innovation, Network analysis
in
Papers in evolutionary economic geography
volume
20
issue
15
pages
33 pages
publisher
Papers in Evolutionary Economic Geography, Urban & Regional Research Centre Utrecht, Utrecht University
language
English
LU publication?
yes
id
af1411f3-7618-40e2-8c70-076e326646f0
alternative location
http://econ.geo.uu.nl/peeg/peeg2015.pdf
date added to LUP
2020-03-29 13:14:50
date last changed
2020-03-31 02:21:32
@misc{af1411f3-7618-40e2-8c70-076e326646f0,
  abstract     = {{This  study  investigates  how  related  variety  in  the  regional  employment  mix  affects  the innovation output of a region. Departing from the idea of recombinant innovation, previous research  has arguedthat  related  variety  enhances  regional  innovation  as  inter-industry knowledge spillovers occur more easily between different but cognitively similar industries.  This study combines a novel dataset and related variety measures based on network theory, which  allows  a  more  nuanced  perspective  on  the  relationship  between  related  variety  and regional innovation.The principal novelty of the paper lies in employing new data on product innovations commercialised by Swedish manufacturing firms between 1970 and 2013. In this respect,  it  allows  a direct measure  of  regionalinnovation  output  as  compared  to  patent measures, usually employed in similar studies. The second contribution of this paper is that we  employ  network-topologybased  measuresof  related  variety  that  allowus to  measure relatedness  as  the recombination  rather  than  direct  flow  of  knowledge.  We  argue  that  this measure comes closer to the notion of innovation as spurred by recombination and show that this measure is a superior predictor of innovation activity.}},
  author       = {{Martynovich, Mikhail and Taalbi, Josef}},
  keywords     = {{Related variety; Relatedness; Innovation; Network analysis}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{15}},
  publisher    = {{Papers in Evolutionary Economic Geography, Urban & Regional Research Centre Utrecht, Utrecht University}},
  series       = {{Papers in evolutionary economic geography}},
  title        = {{Related variety, recombinant knowledge and regional innovation. Evidence for Sweden, 1991-2010}},
  url          = {{http://econ.geo.uu.nl/peeg/peeg2015.pdf}},
  volume       = {{20}},
  year         = {{2020}},
}