Which region to choose for an industrial policy? A research path to highlight restructuring opportunities

Our study explores research avenues that can help policymakers to assess regional capabilities for ‘green’ economic restructuring. After reviewing the relevant literature, and envisioning research paths which consider both market transactions and externalities, we propose possible ways to translate past research findings into novel statistical tools. Our point of departure is the ‘skill relatedness’ among economic sectors in Norway, as inferred from intersectoral labour flows (years 2008–2014). Then, on the basis of the industrial composition in each of the 161 Norwegian labour market areas, candidate regions that could benefit the most from a ‘green’ restructuring policy, aimed at photovoltaics in our empirical example, are brought forward