Frenken K., Van Oort F. and Verburg T. (2007) Related variety, unrelated variety and regional economic growth, Regional Studies 41, 685–697. In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. It is argued that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). A methodology based on entropy measures is introduced to compute related variety and unrelated variety. Using data at the NUTS 3 level in the Netherlands for 1996–2002, it was found that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth can be explained by traditional determinants including investments and research and development expenditures. Implications for regional policy follow. Frenken K., Van Oort F. et Verburg T. ...

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Related variety, unrelated variety and regional economic growth

Economics and Information Theory

In recent years, economic geographers have seized on the concepts of `path dependence' and `lock-in' as key ingredients in constructing an evolutionary approach to their subject. However, they have tended to invoke these notions without proper examination of the ongoing discussion and debate devoted to them within evolutionary economics and elsewhere. Our aim in this paper, therefore, is, first, to highlight some of the unresolved issues that surround these concepts, and, second, to explore their usefulness for understanding the evolution of the economic landscape and the process of regional development. We argue that in many important aspects, path dependence and `lock-in' are place-dependent processes, and as such require geographical explanation. However, the precise meaning of regional `lock-in', we contend, is unclear, and little is known about why it is that some regional economies become locked into development paths that lose dynamism, whilst other regional economies seem able to avoid this danger and in effect are able to `reinvent' themselves through successive new paths or phases of development. The issue of regional path creation is thus equally important, but has been rarely discussed. We conclude that whilst path dependence is an important feature of the economic landscape, the concept requires further elaboration if it is to function as a core notion in an evolutionary economic geography.

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Path dependence and regional economic evolution

The Theory of Monopolistic Competition.

Thepaperexplainsthecommonalitiesanddifferencesbetweenneoclassical, institutional and evolutionary approaches that have been influential in economic geography during the last couple of decades. By separating the three approaches in termsoftheoretical content and researchmethodology, wecanappreciateboththecommonalitiesanddifferencesbetweenthethree approaches. It is also apparent that innovative theorizing currently occurs at the interface between neoclassical and evolutionary theory (especially in modelling) and at the interface between institutional and evolutionary theory (especially in ‘appreciative theorizing’). Taken together, we argue thatEvolutionaryEconomicGeographyisanemergingparadigmineconomic geography, yet does so without isolating itself from developments in other theoretical approaches.

/pdf/why-is-economic-geography-not-an-evolutionary-science-1w4yeylwt0.pdf

Why is economic geography not an evolutionary science? Towards an evolutionary economic geography

In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. We argue that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). We introduce a methodology based on entropy measures to compute related variety and unrelated variety. Using data at the COROP level for the period 1996-2002, we find that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth, by contrast, can be explained by traditional determinants including investments and R&D expenditures. Implications for regional policy in The Netherlands follow.

Variety and regional economic growth in the Netherlands : final report to the Ministery of Economic Affairs

Variety and regional economic growth in the Netherlands

Hub-and-spoke networks of airlines create entry barriers at large hub airports. As a result, deregulation does not necessary lead to more competition. In this paper, airline competition at European airports in the 1990s is analysed. Results show important differences between airports, which are related to size and geography. At most airports, competition increased with the successful entrance of new competitors. Yet, competition decreased at hub airports and at airports in the northern periphery in Europe.

/pdf/airline-competition-at-european-airports-53sdi7qsv1.pdf

Airline competition at European airports

/pdf/variety-and-regional-economic-growth-in-the-netherlands-55g5tnpm8j.pdf

Thijs Verburg

Papers

Related variety, unrelated variety and regional economic growth

Variety and regional economic growth in the Netherlands : final report to the Ministery of Economic Affairs

Variety and regional economic growth in the Netherlands

Airline competition at European airports

Variety and Regional Economic Growth in the Netherlands