The location of biotech firms in Italy: analysis and implications for regional industrial policies

The location of high-tech firms is important for both regional and national economic development. As low-wage manufacturing industries move out of industrialized countries, attempts are made to stimulate high-tech sectors. While the process of high-tech industrial development in some countries (most notably, the US and the UK) has been well-studied, other countries are trying to promote this process. But in many cases the endowments of factors that are seen as especially important in the leading high-tech countries are less relevant in the others, and the territorial component becomes a key determinant of the outcomes of the policies promoted. This paper investigates the location of biotech firms in Italy in order to identify the main attractors of biotech firms. It looks in particular at the degree of substitutability and interaction between attractors, as well as at the specific role of Science and Technology Parks in creating high-tech agglomerations. The study concludes with some policy implications at the regional level, highlighting the need for coordination between different levels of government in promoting the development of high-tech industries.