Interrelated diversification and internationalization: critical drives of global industries.

Abstract

This paper discusses the influence of two economic trends that arise as a consequence of globalisation: the industrial interrelated diversification process through related varieties and the internationalisation of both production and innovation. These two trends are evidenced in two industries located in the Basque Country region, the former furniture industry and the wind energy sector. Our study reveals how companies and territories that are in condition to pick up the opportunities derived from the above trends are also the ones that may guarantee their sustainability in the marketplace. In contrast, the firms that respond to these challenges by merely targeting their traditional and/or local markets might be saving their short-run competitiveness while jeopardizing their future prospects