Differences in complex knowledge in Dutch regions
A case study of the Utrecht and Zeeland region
Bachelor thesis
Bob Sanders (6246176)
31-05-2020
Pierre-Alexandre Balland
,Abstract
This paper shows differences in complex knowledge of Dutch provinces and in particular the provinces
Utrecht and Zeeland. Quantitative and qualitative data shows high levels of complex knowledge in the
Utrecht province and low levels of complex knowledge in the Zeeland province. Clear mechanisms are
provided and show that educational attainment relates to a division of knowledge and creates
professional expertise, particularly in agglomerated regions. Zeeland shows little knowledge of
complexity and presents an unfavourable environment for human capital. Utrecht, on the other hand,
shows high levels of complex knowledge and a pleasant region for attracting human capital, creating
an advantageous business environment.
Keywords: Complex knowledge, region, Dutch, Zeeland, Utrecht, higher education institution, human
capital.
2
, 1. Introduction
A complex local economy drives innovation, economic growth in the long-run and gives the region a
competitive advantage (Balland & Rigby, 2017). This could have implications for innovation policy
surrounding the regional, national, or international agenda. Investments in technological fields can be
increased. In Europe, research and development (R&D) expenditures have increased with 15,1% from
the years 2013 to 2017 (Eurostat, 2019). Funding for research and education can be increased due to
maintaining and developing the complex local economy. Higher education institutions play a big role
in the current knowledge-intensive society and knowledge economy. To fulfil the knowledge-intensive
services (i.e. complex economic activities), qualified labour is needed. Therefore, the knowledge
sector itself is growing and there is an increasing focus on data, information, and knowledge in all
sectors and activities.
The growth of knowledge complexity can bring spatial inequality due to the unequal geography of
invention. According to Hidalgo & Hausmann (2009) “as people and firms specialize in different
activities, economic efficiency increases, suggesting that development is associated with an increase
in the number of individual activities and with the complexity that emerges from the interactions
between them” (p. 10570). This leads to the agglomeration of economic processes. Complex economic
activities tend to concentrate in agglomerated or more densely populated regions because they
require a deeper division of knowledge and labour (Balland, Jara-Figueroa, Petralia, Steijn, Rigby &
Hidalgo, 2020). This paper shows that there is regional inequality regarding complex knowledge in
Dutch provinces.
2. Literature review
Economic growth is no longer explained by population growth but by innovation driven by human
capital which drives economic growth (Strulik, 2005). In The Wealth of Nations, Smith (1776) argued
that the division of labour generates the specialization of individuals in producing machines or
pursuing inventive activities. In this context, according to Lavezzi (2001) technological advances and
increases in the stock of knowledge:
Can be considered as consequences of an increased division of labour among and within firms,
since they proceed at a certain speed only when (i) some classes of men become exclusively
engaged in producing machines, or (ii) in producing knowledge or (iii) when workers
concentrate on a particular phase of the production process. (p. 4)
3
A case study of the Utrecht and Zeeland region
Bachelor thesis
Bob Sanders (6246176)
31-05-2020
Pierre-Alexandre Balland
,Abstract
This paper shows differences in complex knowledge of Dutch provinces and in particular the provinces
Utrecht and Zeeland. Quantitative and qualitative data shows high levels of complex knowledge in the
Utrecht province and low levels of complex knowledge in the Zeeland province. Clear mechanisms are
provided and show that educational attainment relates to a division of knowledge and creates
professional expertise, particularly in agglomerated regions. Zeeland shows little knowledge of
complexity and presents an unfavourable environment for human capital. Utrecht, on the other hand,
shows high levels of complex knowledge and a pleasant region for attracting human capital, creating
an advantageous business environment.
Keywords: Complex knowledge, region, Dutch, Zeeland, Utrecht, higher education institution, human
capital.
2
, 1. Introduction
A complex local economy drives innovation, economic growth in the long-run and gives the region a
competitive advantage (Balland & Rigby, 2017). This could have implications for innovation policy
surrounding the regional, national, or international agenda. Investments in technological fields can be
increased. In Europe, research and development (R&D) expenditures have increased with 15,1% from
the years 2013 to 2017 (Eurostat, 2019). Funding for research and education can be increased due to
maintaining and developing the complex local economy. Higher education institutions play a big role
in the current knowledge-intensive society and knowledge economy. To fulfil the knowledge-intensive
services (i.e. complex economic activities), qualified labour is needed. Therefore, the knowledge
sector itself is growing and there is an increasing focus on data, information, and knowledge in all
sectors and activities.
The growth of knowledge complexity can bring spatial inequality due to the unequal geography of
invention. According to Hidalgo & Hausmann (2009) “as people and firms specialize in different
activities, economic efficiency increases, suggesting that development is associated with an increase
in the number of individual activities and with the complexity that emerges from the interactions
between them” (p. 10570). This leads to the agglomeration of economic processes. Complex economic
activities tend to concentrate in agglomerated or more densely populated regions because they
require a deeper division of knowledge and labour (Balland, Jara-Figueroa, Petralia, Steijn, Rigby &
Hidalgo, 2020). This paper shows that there is regional inequality regarding complex knowledge in
Dutch provinces.
2. Literature review
Economic growth is no longer explained by population growth but by innovation driven by human
capital which drives economic growth (Strulik, 2005). In The Wealth of Nations, Smith (1776) argued
that the division of labour generates the specialization of individuals in producing machines or
pursuing inventive activities. In this context, according to Lavezzi (2001) technological advances and
increases in the stock of knowledge:
Can be considered as consequences of an increased division of labour among and within firms,
since they proceed at a certain speed only when (i) some classes of men become exclusively
engaged in producing machines, or (ii) in producing knowledge or (iii) when workers
concentrate on a particular phase of the production process. (p. 4)
3
