The dark side of the geography of innovation: relatedness, complexity and regional inequality in Europe

Publication date

2025-12

Authors

Pinheiro, Flavio L.
Balland, Pierre-AlexandreISNI 0000000358952752
Boschma, RonISNI 0000000116353431
Hartmann, Dominik

Editors

Advisors

Supervisors

Document Type

Article
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License

cc_by_nc_nd

Abstract

As regions evolve, their economies become more complex, and they tend to diversify into related activities. Although there is a bright side to this diversification process in terms of economic development, there may also be a dark side to it, as it possibly contributes to regional inequalities. The paper uses data on industries and patents to analyse the diversification patterns of 283 regions in 32 European countries over the past 15 years. We find that only the most economically advanced regions have the opportunity to diversify into highly complex activities. These regions tend to focus on related high-complex activities, while lagging regions focus on related low-complex activities, creating a spatial inequality feedback loop. This pattern creates a wicked problem for innovation policy: the strategy needed to improve the innovativeness of the European knowledge system might disproportionately benefit regions that are already developed and foster disparities.

Keywords

complexity, dark side of innovation, geography of innovation, regional diversification, regional inequality, Smart Specialisation policy, General Environmental Science, General Social Sciences, SDG 8 - Decent Work and Economic Growth, SDG 10 - Reduced Inequalities

Citation

Pinheiro, F L, Balland, P A, Boschma, R & Hartmann, D 2025, 'The dark side of the geography of innovation : relatedness, complexity and regional inequality in Europe', Regional Studies, vol. 59, no. 1, 2106362. https://doi.org/10.1080/00343404.2022.2106362