Successful economic diversification in less developed regions: long-term trends in turbulent times

Abstract

The interplay between related and unrelated varieties and diversification processes as a driver of economic growth dominates contemporary discussions in the evolutionary economic geography (EEG) literature. This study provides further insights into these debates by exploring Poland, a nation of predominantly less developed regions, in the turbulent period between 1931 and 2000 which covers the Second World War and Communism. It is confirmed that in these specific settings only variety and diversification based on knowledge-intensive-related industries were conducive to growth. Successful diversification occurred more frequently around the capital city and transport corridors, indicating implications for EEG.