The Principle of Relatedness

César A. Hidalgo, Pierre-Alexandre Balland, Ron Boschma, Mercedes Delgado, Maryann Feldman, Koen Frenken, Edward Glaeser, Canfei He, Dieter F. Kogler, Andrea Morrison, Frank Neffke, David Rigby, Scott Stern, Siqi Zheng, Shengjun Zhu

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

Abstract

The idea that skills, technology, and knowledge, are spatially concentrated, has a long academic tradition. Yet, only recently this hypothesis has been empirically formalized and corroborated at multiple spatial scales, for different economic activities, and for a diversity of institutional regimes. The new synthesis is an empirical principle describing the probability that a region enters---or exits---an economic activity as a function of the number of related activities present in that location. In this paper we summarize some of the recent empirical evidence that has generalized the principle of relatedness to a fact describing the entry and exit of products, industries, occupations, and technologies, at the national, regional, and metropolitan scales. We conclude by describing some of the policy implications and future avenues of research implied by this robust empirical principle.
Original languageEnglish
Title of host publicationUnifying Themes in Complex Systems IX
EditorsAlfredo J. Morales, Carlos Gershenson, Dan Braha, Ali A. Minai, Yaneer Bar-Yam
Place of PublicationCham
PublisherSpringer
Pages451-457
Number of pages7
ISBN (Print)978-3-319-96661-8
DOIs
Publication statusPublished - 2018

Keywords

  • Economic complexity
  • Relatedness
  • Economic geography

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