Path Dependence in Regional Structural Change: Implications for the EU Cohesion and Innovation Policy

24 Pages Posted: 16 Jul 2020

See all articles by Tullio Buccellato

Tullio Buccellato

Economic Research Department, Confindustria

Giancarlo Corò

Ca Foscari University of Venice - Dipartimento di Economia

Date Written: June 20, 2020

Abstract

The key purpose of this paper is to measure the similarity of regional economic fabrics based on their structure. We propose a new mapping of European regions based on structural proximity; the representation takes the shape of a network, which is also useful to define clusters of regions according to the similarity of their economic structures and, hence, in the endowment of productive competences. We show that there is a high persistence in the relative positioning of regions according to their economic structure and that this is markedly associated with patterns of economic growth and convergence. The spectrum of regional performance range from virtuous urban agglomerates characterized by the presence of advanced services, with enhanced institutional quality, endowed with efficient transport infrastructures and highly educated and productive workforce, to regions characterised by scarce service or industrial activity, sometimes with a cumbersome role of tourism-related business, with poor institutions and transport infrastructure and low endowments of human capital and productive workforce. To richer pools of productive competences are associated faster paces of economic growth. The findings of this paper suggest that place-based policies should be implemented to support territorial development in the short/medium term, but these policies can be effective for the long run growth only when they are meant to leverage on the regional pool of competences to trace trajectories of structural change.

Keywords: Resilience, economic complexity, regional disparities

JEL Classification: O10, O25, P25, R10, L16

Suggested Citation

Buccellato, Tullio and Corò, Giancarlo, Path Dependence in Regional Structural Change: Implications for the EU Cohesion and Innovation Policy (June 20, 2020). University Ca' Foscari of Venice, Dept. of Economics Research Paper Series No. 14/WP/2020, Available at SSRN: https://ssrn.com/abstract=3634460 or http://dx.doi.org/10.2139/ssrn.3634460

Tullio Buccellato (Contact Author)

Economic Research Department, Confindustria ( email )

viale dell'Astronomia, 30
Rome, 00144
Italy

Giancarlo Corò

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

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