Case Study with Broader Implications

Finding Opportunities to Diversify Regional Economies with Lessons for Policy from a Case Study on Hawaiʻi

Authors: Steven Bond-Smith (University of Hawaiʻi at Mānoa) , Sumit Ilamkar (University of Hawaiʻi at Mānoa)

Abstract

Many regions aim to diversify their economies. But objective tools are rarely used to find diversification opportunities. We propose using the principle of relatedness to identify potential opportunities. Specifically, we use objective measures to identify small or new industries that fit well with the region's existing strengths. We summarize a case study on diversifying Hawaiʻi's economy and discuss policy implications. Even with this clear method to identify opportunities, there will be barriers to developing these industries. New industries will therefore need a targeted policy response that addresses barriers to development. 

Keywords: Diversification, Economic Development, Regional Policy, Industry Policy

How to Cite: Bond-Smith, S. & Ilamkar, S. (2025) “Finding Opportunities to Diversify Regional Economies with Lessons for Policy from a Case Study on Hawaiʻi”, Reaching Regions. 1(2). doi: https://doi.org/10.31274/rreg.18310