A map of the fractal structure of high-tech dynamics across EU regions
Ariel L. Wirkierman, Tommaso Ciarli & Maria Savona
#2021-023
The paper provides a novel, theoretically driven map of EU regional
asymmetries, based on the shares and dynamics of high-tech employment
and wages, as well as the structure of inter-regional Input-Output
relations at the EU NUTS-1 regional level. We use data from EUROSTAT and
the EU-REGIO database to perform a trade-aware shift-share analysis
coupled with a hierarchical clustering. We show that EU regions present
a fractal structure of asymmetries, i.e. the emergence of core-periphery
relations at progressively smaller scales, in relation to both spatial
and trade dimensions. We identify regional clusters labelled
'consolidated core', 'declining core', 'emerging cities', 'declining
peripheries' and 'CEE factories', and we show that there is a polarising
dynamics between driving and follower clusters, drawing implications for
EU cohesion policy.
JEL classification: R11, O30, C38
Keywords: Regional high-tech employment, Regional wage rate
differentials, Cluster Analysis, European cohesion policy