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    Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries

    Mameli, F. and Iammarino, S. and Boschma, R. (2012) Regional variety and employment growth in Italian labour market areas: services versus manufacturing industries. Working Paper. Birkbeck College, University of London, London, UK.

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    This paper investigates the impact of regional sectoral diversity on regional employment growth in Italy over the period 1991-2001. Assuming that externalities may be stronger between industries selling similar products or sharing the same skills and technology (i.e. related industries), we analyze the role of different forms of sectoral variety at the Local Labour System (LLS) level. We consider variety both in terms of shared complementary competences that induce effective interactive learning and innovation, as well as a portfolio strategy to protect a region from external shocks in demand. Our results show strong evidence of a general beneficial effect of a diversified sectoral structure but suggest also the need to differentiate the analysis between manufacturing and services. In particular, overall local employment growth seems to be favoured by the presence of a higher variety of related service industries, while no role is played by related variety in manufacturing. When looking at diversity externalities between macro-aggregates, the service industry is affected by related variety in manufacturing, while no evidence of externalities is found from tertiary sectors to manufacturing.


    Item Type: Monograph (Working Paper)
    Additional Information: WP4, ISSN: 2052-062X
    Keyword(s) / Subject(s): related variety, knowledge spillovers, agglomeration economies, regional growth, Italy
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Innovation Management Research, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 15 Oct 2013 13:35
    Last Modified: 02 Aug 2023 17:07


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