TY - BOOK
T1 - Variety and regional economic growth in the Netherlands : final report to the Ministery of Economic Affairs
AU - Frenken, K.
AU - Oort, van, F.G.
AU - Verburg, T.
AU - Boschma, R.A.
PY - 2004
Y1 - 2004
N2 - 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.
AB - 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.
M3 - Report
T3 - Research Series
BT - Variety and regional economic growth in the Netherlands : final report to the Ministery of Economic Affairs
PB - Ministry of Economic Affairs
CY - The Hague
ER -