Empirical results on the link between growth and diversity in (un)related industries proved to be highly dependent on the
specific regional, temporal and econometric context. Using highly disaggregated employment data at the sub-regional level,
we find that higher employment growth in Austria is mainly linked to unrelated variety. However, in-depth analyses by sectors
and regional regimes illustrate substantial heterogeneity in the results, with services and a large number of relatively small
non-urban regions driving the overall results. Thus, our findings argue against structural policy conclusions based on assessments
neglecting the specific sectoral and regional context.
Research group:Regional Economics and Spatial Analysis