“…What can be done in future studies is to analyse directly the impact of related variety on entrepreneurship, knowledge and innovation, which in turn are expected to lead to employment and exports. Quite some studies already analysed the effects of related and unrelated variety on patents as the dependent variable (Castaldi, Frenken, & Los, 2015;Kogler, Rigby, & Tucker, 2013;Rigby, 2015;Tanner, 2016;Tavassoli & Carbonara, 2014), but fewer of such studies exist looking at scientific publications Heimeriks & Balland, 2015) or new firm formation (Colombelli, 2016;Guo, He, & Li, 2016) as dependent variables. (8) Finally, related-variety studies hitherto focus on how related variety affects economic development, while research on the geography of knowledge recombination processes at the micro-level remains rather unconnected to the related-variety literature.…”