“…Hence, variety per se may not support innovation; rather it is 'related variety' (NOOTEBOOM, 2000; that provides the basis for knowledge spillovers and recombinant innovation, spurring productivity and employment growth. The related variety hypothesis has motivated a large number of other empirical studies on the effect of related variety in sectoral composition on regional productivity and employment growth (ESSLETZBICHLER, 2007;BOSCHMA and IAMMARINO, 2009;BISHOP and GRIPAIOS, 2010;QUATRARO, 2010QUATRARO, , 2011ANTONIETTI and CAINELLI, 2011;BRACHERT et al, 2011;BOSCHMA et al, 2012;HARTOG et al, 2012;MAMELI et al, 2012). Results tend to show that related variety indeed supports productivity and employment growth at the regional level, though some studies suggest that the effects are sector-specific (BISHOP and GRIPAIOS, 2010;MAMELI et al, 2012).…”