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Related variety and economic development:a literature review

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  • Jeroen Content
  • Koen Frenken

Abstract

Since the introduction of the related variety in 2007, a number of studies have been undertaken to analyze the effect of related variety on economic development. Our review of 21 studies makes clear that most studies find support for the initial hypothesis that related variety supports employment growth, though some studies suggest that the growth effects of related variety may be specific to knowledge-intensive sectors only. From the review, we list a number of further research questions regarding: methodology, the role of unrelated variety, different forms of relatedness, and the effect of related variety on knowledge production and entrepreneurship.

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  • Jeroen Content & Koen Frenken, 2016. "Related variety and economic development:a literature review," Papers in Evolutionary Economic Geography (PEEG) 1621, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2016.
    • Handle: RePEc:egu:wpaper:1621
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