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Technological diversity and Jacobs' externality hypothesis revisited

Author

Summary, in English

Recent empirical evidence strongly supports Jacobs's (1969) externality hypothesis that urban diversity provides a more favorable 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. This 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.

Department/s

Publishing year

2005

Language

English

Pages

167-195

Publication/Series

Growth & Change

Volume

36

Issue

2

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Social Sciences Interdisciplinary

Status

Published

ISBN/ISSN/Other

  • ISSN: 0017-4815