https://orcid.org/0000-0001-6438-5497
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ABSTRACT
We analyse whether regionally embedded or firm-level capabilities drive regional diversification in industrial districts, examining the relationship between relatedness and Marshallian agglomerations. We argue that regional diversification lacks an explicit mechanism to explain branching into new products, positing that the origin of regional product branching is based on firm-level heterogeneity of capabilities and diversification, which is overlooked. Using mixed methods and patent analysis (1895–2019; 3592 patents and utility models), product diversification in the Toy Valley district in Alicante (Spain) is analysed, showing that firm-level related diversification with extensive local search explains the mechanism of the regional relatedness diversification.
DISCLOSURE STATEMENT
No potential conflict of interest was reported by the author(s).
Notes
1. We use indistinctively clusters and districts, despite their ‘social’ difference, and also new path development generically for the local transformation, in the sense of Isaksen et al. (Citation2018).
2. Cognitive inertia might occur under this perspective (Breschi et al., Citation2003; Glasmeier, Citation1991).
4. See https://www.aefj.es/
5. Following Neffke and Henning (Citation2013), we follow a resource-based relatedness in the interviews.
6. Data are available from the authors upon request.
7. See https://www.vicedomarti.com/en/history/; founder Mr. José Vicedo.
10. For a list of IPC codes and their corresponding products, see in Appendix A in the supplemental data online.
11. Example: ‘molded beverage and food containers’ or ‘self-assembly fluid pouch packaging’.
12. See https://www.actiu.com/en/furniture-airports/ or https://www.actiu.com/en/furniture-education/ as examples.