Related Variety, Unrelated Variety, and Regional Growth: The Role of Absorptive Capacity and Entrepreneurship

Michael Fritsch and Sandra Kublina ()
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Sandra Kublina: School of Economics and Business Administration, Friedrich-Schiller-University Jena

No 2016-009, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: This paper investigates the effect of related and unrelated variety on regional growth in West Germany. In particular, we analyze the role of regional absorptive capacity and new business formation for these effects. We find that West German regions benefit from both types of varieties. The positive effect of unrelated variety on growth is more pronounced in regions with higher levels of absorptive capacity in terms of R&D activities and with higher levels of new business formation. Such moderating effects cannot be found for related variety.

Keywords: Related variety; unrelated variety; knowledge spillovers; regional absorptive capacity; entrepreneurship; regional growth (search for similar items in EconPapers)
JEL-codes: D62 R11 R12 (search for similar items in EconPapers)
Date: 2016-05-10
New Economics Papers: this item is included in nep-bec, nep-cse, nep-ent, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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Related works:
Journal Article: Related variety, unrelated variety and regional growth: the role of absorptive capacity and entrepreneurship (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:jrp:jrpwrp:2016-009

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