Open Conference Systems, Schumpeter 2010

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Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies

Frank Neffke, Martin Henning

Last modified: 2010-06-02

Abstract


This article studies path dependent regional structural change using a quantitative framework. Based on an inter-industry skill-relatedness indicator, the degree to which local skill-bases exist and force local economies onto a path-dependent development trajectory is studied. The main question is into which local industries new plants enter, while distinguishing between the plants of entrepreneurs and firms. Using a dataset on Swedish individuals and municipalities, it is found that entrepreneurs tend to reinforce established local industrial specializations, whereas new plants of already existing firms do less so. Moreover, outside actors deepen local economy’s core specialization more than do local actors. Please also note that the title has changed slightly. The new title is: "Seeds of regional structural change. The role of entrepreneurs and expanding firms in shaping local path dependencies.

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