Technological diversity and Jacobs’s externality hypothesis revisited
(English)Manuscript (preprint) (Other academic)
Recent empirical evidence strongly supports Jacobs’s (1969) externality hypothesis that urban diversity provides a more favourable environment for economic development than urban specialization. In order to correctly gauge Jacobs’s hypothesis, economic development should be understood as a result of innovations. Furthermore, a relevant diversity measure should take into account the degree of diversity of the inherent classes (e.g. pharmaceuticals are closer to chemicals than to forestry). These ideas are tested using regionally classified Swedish patent application data as a measure of innovativeness. Patent data are also used to reflect technological diversity. The results show that the number of patent applications in Swedish regions, is highly and positively dependent on regional technological specialization, quite the opposite of Jacobs’s prediction. The paper raises general questions about earlier empirical results. It is concluded that the size of regions is an important factor to consider, since this in itself may affect patenting intensity and technological diversity.
IdentifiersURN: urn:nbn:se:hj:diva-31983OAI: oai:DiVA.org:hj-31983DiVA: diva2:1037151
Included in the thesis "Perspectives on regional and industrial dynamics of innovation": "The first draft of this paper was presented at my visit to the Centre for Research on Innovation and Internationalization (CESPRI) at Bocconi University in Milan in 2002."2016-10-142016-10-142016-10-14Bibliographically approved