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Path dependency, regional variety and the dynamics of new firm creation in rooted and pioneering industries
[The knowledge spillover theory of entrepreneurship]

Author

Listed:
  • Carlo Corradini
  • Enrico Vanino
Abstract
This paper explores regional firm entry connecting insights on the role of localised path dependency with the analysis of variety in regional sectoral structures. Using data on 700 SIC5 industries across 174 NUTS3 regions in the UK between 2000 and 2014, we provide evidence of positive complementarities between industrial path dependence and regional-related variety for firm entry in rooted pre-existing industries. These are negative for entry of pioneering firms in industries new to the region, pointing to lock-in effects and the role of unrelated variety in fostering linkages and knowledge spillovers away from established trajectories.

Suggested Citation

  • Carlo Corradini & Enrico Vanino, 2022. "Path dependency, regional variety and the dynamics of new firm creation in rooted and pioneering industries [The knowledge spillover theory of entrepreneurship]," Journal of Economic Geography, Oxford University Press, vol. 22(3), pages 631-651.
    • Handle: RePEc:oup:jecgeo:v:22:y:2022:i:3:p:631-651.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbab021
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    More about this item

    Keywords

    Relatedness; path dependency; related variety; entrepreneurship;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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