Presenter:Flávio L. Pinheiro, NOVA Information Management School (NOVA IMS), Universidade Nova de Lisboa

Discussant: tba

Abstract

Here, we use Economic Complexity methods to explore how regional diversification can operate to mitigate or amplify regional inequalities in Europe. Using data on industries, patents, and cohesion funds, we analyze the diversification patterns of 283 regions and 32 European countries over the past 15 years. We show that regions’ ability to enter complex activities is highly dependent on their current economic level (i.e., more developed or lagging). As such, traditional diversification into related activities poses challenges to innovation and cohesion policy, in particular by creating a landscape that, rather than mitigating disparities, amplifies them.

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