The deployment of investment and labour over a wider range of activities. Wei et al. (2007) Econ. Geog. 83, 4 show that diversification in China is led by local governments, and entrepreneurs embedded in thick local networks. R. Boschma and G. Capone (2014) analyse the process of industrial diversification in the EU-27 and European Neighbourhood Policy countries in the period 1995–2010.