Regional static diversification and relatedness between industries

Abstract Relatedness has often been shown to have a central role in regional diversification. Knowledge flows between related industries are an important source of innovation, leading industry growth and the establishment new industries. Earlier studies focused on dynamic diversification into industries, but this study, we emphasize static diversification, that is, changes balance existing region. We use linked employer–employee data from Denmark construct range measures at level The relatedness 2008–2013 is then analyzed based characteristics 2008. find plays more regions either spatially peripheral or economically non-peripheral, while no relationship average. In addition empirical result, contribute by comparing indices relatedness, suggesting alternative employment-weighted index, conceptualizing as itself disparity dimension diversity. finally ask how affect disparity. human capital intensity link evolution