Abstract: (13 Views)
The spatial concentration of economic activity is a persistent feature of economies at different geographical scales and can play an important role in regional development. Although several strands of economic theory have sought to explain the relationship between agglomeration, growth and development, this study applies the economic complexity framework and interprets industrial concentration through the notion of tacit knowledge. The central premise is that the technological relatedness of firms shapes the scope of local knowledge spillovers: firms are more likely to benefit from such spillovers when the tacit capabilities embedded in their activities are similar. Using data on industrial establishments with ten or more employees, classified at the ISIC level, technological linkages among industries are estimated for Iran’s provinces over 2011–2019. The number of establishments is used to construct an industrial space that represents relatedness among industries. Yazd Province is examined as the case study. The resulting network makes it possible to identify industries that are technologically close to the province’s existing advantageous industries and, therefore, are more plausible candidates for targeted support. Such a policy can simultaneously protect established capabilities and improve the conditions for the emergence of industrial clusters.
Keywords: Industrial development, Economic complexity, Industrial space, Tacit knowledge, Revealed comparative advantage
Type of Study: Research |
Subject:
economic development, regional economics and growth
Received: Aug 17 2026 | Accepted: May 31 2026
Received: Aug 17 2026 | Accepted: May 31 2026
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