Employment imbalances in EU regions: technological dependence or high-tech trade centrality?

Wirkierman, Ariel Luis; Ciarli, Tommaso and Savona, Maria. 2024. Employment imbalances in EU regions: technological dependence or high-tech trade centrality? Regional Studies, pp. 1-19. ISSN 0034-3404 [Article] (In Press)

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Abstract or Description

We analyse the role of technological dependence and interregional trade centrality in explaining a region’s employment performance. We first identify the core–periphery technological structure of European Union (EU) regions, clustering them based on their high-tech trade relations (trade blocks) and technological and economic indicators (place-based regional groups). We show that EU regions have a fractal structure: blocks at the core and periphery of the high-tech trade network are divided into core and peripheral subgroups, which differ significantly in terms of innovation and employment performance. Next, the econometric analysis shows that buyer centrality is the main component of employment growth (especially in services), but within trade blocks it has to be combined with low technological dependence on more innovative regions (especially in manufacturing). Cohesion policies should pay attention to the fractal structure of regional inequalities, and Smart Specialisation strategies should consider that unrelated diversification towards activities intensive in the use of high-tech inputs may be more conducive to employment growth.

Item Type:

Article

Identification Number (DOI):

https://doi.org/10.1080/00343404.2024.2392794

Additional Information:

Funding: The authors gratefully acknowledge the support by the European Union’s Horizon 2020 Framework Programme [grant agreement numbers 649186/ECRN 194562 – ISIGrowth (Innovation-Led, Sustainable and Inclusive Growth) and 101004703 PILLARS (Pathways to Inclusive Labour Markets)]. Maria Savona gratefully acknowledges the Economic and Social Research Council (ESRC)-funded Centre for Inclusive Trade Policy, University of Sussex.

Keywords:

regional high-tech employment; input trade networks; cluster analysis; European Cohesion Policy

Departments, Centres and Research Units:

Institute of Management Studies

Dates:

DateEvent
9 August 2024Accepted
2 September 2024Published Online

Item ID:

37510

Date Deposited:

05 Sep 2024 13:11

Last Modified:

09 Sep 2024 10:49

Peer Reviewed:

Yes, this version has been peer-reviewed.

URI:

https://research.gold.ac.uk/id/eprint/37510

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