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The determinants of regional specialisation in business services: agglomeration economies, vertical linkages and innovation

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posted on 2023-06-08, 16:43 authored by Valentina Meliciani, Maria SavonaMaria Savona
The article accounts for the determinants of sectoral specialisation in business services (BS) across the EU-27 regions as determined by: (i) agglomeration economies (ii) the region-specific structure of intermediate linkages (iii) technological innovation and knowledge intensity and (iv) the presence of these factors in neighbouring regions. The empirical analysis draws upon the REGIO panel database over the period 1999–2003. By estimating a Spatial Durbin Model, we find significant spatial effects in explaining regional specialisation in BS. Our findings show that, besides urbanisation economies, the spatial structure of intermediate sectoral linkages and innovation, in particular Information and Communication Technologies (ICTs), are important determinants of specialisation in BS. The article contributes to the debate on the global versus local determinants of regional specialisation in BS by restating the importance of the regional sectoral structure besides that of urbanisation. We draw policy implications by rejecting the ‘footloose hypothesis’ for BS.

History

Publication status

  • Published

File Version

  • Published version

Journal

Journal of Economic Geography

ISSN

1468-2702

Publisher

Oxford University Press

Issue

2

Volume

15

Page range

387-416

Department affiliated with

  • SPRU - Science Policy Research Unit Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2014-02-17

First Open Access (FOA) Date

2014-07-31

First Compliant Deposit (FCD) Date

2014-07-31

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