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How industry mutations redefine related variety:  The case of Internet-based advertising
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Social and Economic Geography. (CIND Centre for research on Innovation and Industrial Dynamics)
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Through the distinction of the notion of diversity into related and unrelated, the related variety approach represents an interesting attempt to improve our understanding of industrial dynamics and economic growth. However, using the insights from a case study on Internet based market communication this study seeks to problematize how the related variety approach so far may be read as a somewhat static approach. Through a sample of businesses that offer services within Internet-based market communication, the study uncovers the range of actors who are de facto related to each other within these economic activities. This simple exercise reveals that actors who are de facto related would have been categorised as unrelated in the related variety approach. These actors used to be unrelated, but due to convergence of existing and new technologies they have become related. In this way the paper not only aims to document how this particular industrial field is developing, it also suggests that the related variety approach does not take into account how changing technological conditions continuously alter the composition of related and unrelated actors in the economy. The related variety approach may thus still have a potential to improve its ability to reflect actual relations among industrial actors in its analytical apparatus. The paper suggests alternative indicators that to a larger extent may be tackling how technological change constantly alters the degree of relatedness between various actors.

Keyword [en]
related variety, advertising, new media, ICT, economic geography
National Category
Economic Geography
Identifiers
URN: urn:nbn:se:uu:diva-109862OAI: oai:DiVA.org:uu-109862DiVA: diva2:274316
Projects
Creativity and Innovation in the Cultural Industries
Available from: 2009-10-28 Created: 2009-10-28 Last updated: 2012-01-03Bibliographically approved
In thesis
1. Creative Distraction: The Digital Transformation of the Advertising Industry
Open this publication in new window or tab >>Creative Distraction: The Digital Transformation of the Advertising Industry
2009 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis is primarily based on a case study on how the Internet affects the advertising industry in Oslo, Norway, and on how the digitization of advertising adds to our understanding of the geography of innovation and urban and regional development. The study argues that the Internet fundamentally changes and challenges the advertising industry, and that advertising merges into market communication and even user experience and product development. The interactive nature of the Internet and its parallel social and commercial worlds contribute to transcend the role of a traditional medium and to coalescence between production and consumption. Despite the fact that those involved in online and traditional advertising are located close to each other in Oslo, the extent of collective learning, knowledge externalities and innovation has been scarce. The study shows that the creative destruction of this industrial sector is ignited by actors outside the traditional advertising industry. Due to path dependency along one-way mass communication media incumbents within the advertising industry have left room for new actors, such as web agencies and technology consultants, to explore and take market share in online market communication services. The reconfiguration of market communication is regarded as the result of an industry mutation across advertising and ICT, and creates a need for bridging skills and competencies across creative, strategic and interactive domains. The implications of such an industry mutation across diverse sectors are used to discuss the evolutionary potential of the related variety perspective. The study argues that localized industrial change may be conceptualised in terms of a cyclical relationship between externalities from localisation economies and urbanisation economies respectively. The implications of the findings from the case study are in this way used to discuss more general drivers of urban and regional development.

Place, publisher, year, edition, pages
Uppsala: Universitetstryckeriet, 2009. 134 p.
Series
Geografiska regionstudier, ISSN 0431-2023 ; 82
Keyword
economic geography, innovation, advertising, Internet, agglomeration economies, creative, interactive, knowledge, Oslo, Norway
National Category
Social Sciences Economic Geography
Identifiers
urn:nbn:se:uu:diva-109707 (URN)978-91-506-2108-2 (ISBN)
Public defence
2009-12-04, Auditorium Minus, Museum Gustavianum, Akademigatan 3, Uppsala, 10:00 (English)
Opponent
Supervisors
Projects
Creativity and Innovation in the Cultural Industries
Available from: 2009-11-13 Created: 2009-10-22 Last updated: 2009-11-13

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CiteExportLink to record
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