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The Impact of Related Variety on Regional Employment Growth in Finland 1993–2006: High-Tech versus Medium/Low-Tech

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This paper investigates the impact of related variety on regional employment growth in Finland between 1993 and 2006 by means of a dynamic panel regression model. We find that related variety in general has no impact on growth. Instead, after separating related variety among low-and-medium-tech sectors from related variety among high-tech sectors, we find that only the latter affects regional growth. Hence, we find evidence that the effect of related variety on regional employment growth is conditioned by the technological intensity of the local sectors involved.

Keywords: evolutionary economic geography; high-tech, Finland; regional employment growth; related variety

Document Type: Research Article

Affiliations: 1: Urban and Regional Research Centre Utrecht, Faculty of Geosciences, Utrecht University, PO Box 801153508 TC,Utrecht, The Netherlands 2: School of Management, University of Tampere, FI-33014 University of Tampere, Finland

Publication date: 01 August 2012

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