Abstract

The aim of this study is to investigate the role and importance of related variety in fostering employment growth, covering the period 1991-2011 for the Italian case. This work supports the study of economic and local development from the perspective of the related-variety approach, focusing on the need for a certain degree of cognitive proximity at local level to promote innovation and employment growth. The results underline that variety has a positive impact on employment growth, and related variety matters even more.