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This study examines how related and unrelated variety at the regional level are correlated with establishment-level R&amp;D investment in the environmental industry in Korea. We find a positive correlation between unrelated variety and R&amp;D investment, while related variety does not show a significant correlation. Additionally, the relationship between unrelated variety and R&amp;D investment varies with establishment size. Unrelated variety has positive externalities only for micro establishments and has no clear effects on small, medium, and large establishments.

Related variety, unrelated variety, and R&D investment in the environmental industry