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Related variety and firm heterogeneity: what really matters for short-run firm growth?

Cainelli, Giulio and Ganau, Roberto (2019) Related variety and firm heterogeneity: what really matters for short-run firm growth? Entrepreneurship and Regional Development, 31 (9-10). pp. 768-784. ISSN 0898-5626

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Identification Number: 10.1080/08985626.2019.1571636

Abstract

In recent years, two concepts have become key elements in economic geography: related variety and firm heterogeneity. The first one predicts that knowledge spillovers within a region/local system occur among firms operating in ‘different but related’ sectors. The second one assumes that knowledge spillovers can occur among ‘different’ firms belonging to the same localised sector/industrial cluster. Using a sample of 27,817 Italian manufacturing firms observed during the period 2010–2013, this paper analyses the role played by related variety and within-sector firm heterogeneity on short-run employment growth. The results suggest that both related variety and within-sector firm heterogeneity have a positive effect, although the latter has a higher impact than the former. These results confirm the role played by related variety, but identify firm heterogeneity as a potential additional source of local knowledge spillovers.

Item Type: Article
Official URL: https://www.tandfonline.com/toc/tepn20/current
Additional Information: © 2019 Informa UK Limited, trading as Taylor & Francis Group
Divisions: Geography & Environment
Subjects: G Geography. Anthropology. Recreation > G Geography (General)
H Social Sciences > HC Economic History and Conditions
Date Deposited: 26 Mar 2019 09:39
Last Modified: 20 Jan 2020 06:47
URI: http://eprints.lse.ac.uk/id/eprint/100266

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