IDEAS home Printed from https://ideas.repec.org/a/mul/jqyfkm/doi10.1432-87102y2017i1-2p167-192.html
   My bibliography  Save this article

The Role of Regional Institutions in Research and Innovation Investments of Italy's Cohesion Policy

Author

Listed:
  • R. Arbolino
  • R. Boffardi

Abstract

Innovation is now recognized as the cornerstone of the strategies of growth and reduction of regional imbalances. At the same time, literature underlines the importance of efficient institutions to achieve greater return from investment policies. This paper aims at investigating the link between the quality of Italian administrations and the return on investment made through the Structural and Cohesion Funds, focusing on research and innovation spending by the Italian regions. In order to measure the quality of institutions, autors have used the Institutional Quality Index (IQI), matching data on corruption and governance in Italian regions, and a set of efficiency indices designed to assess the ability of regional policymakers in European fund management. We carried out a two-way fixed effect panel regression analysis among the Italian regions for 2007-2013. The results show that a good level of investment of Structural Funds in R&I is positively correlated with regional growth, while both IQI and efficiency indices have to be considered as key factors, particularly in those regions of Southern Italy characterized by structural shortages.

Suggested Citation

  • R. Arbolino & R. Boffardi, 2017. "The Role of Regional Institutions in Research and Innovation Investments of Italy's Cohesion Policy," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 167-192.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/87102:y:2017:i:1-2:p:167-192
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1432/87102
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.rivisteweb.it/doi/10.1432/87102
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Andr�s Rodr�guez-Pose & Enrique Garcilazo, 2015. "Quality of Government and the Returns of Investment: Examining the Impact of Cohesion Expenditure in European Regions," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1274-1290, August.
    3. Emanuele Ciani & Guido de Blasio, 2015. "European structural funds during the crisis: evidence from Southern Italy," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-31, December.
    4. Tobias D. Ketterer & Andrés Rodríguez‐Pose, 2018. "Institutions vs. ‘first‐nature’ geography: What drives economic growth in Europe's regions?," Papers in Regional Science, Wiley Blackwell, vol. 97(S1), pages 25-62, March.
    5. Andrea Lasagni & Annamaria Nifo & Gaetano Vecchione, 2015. "Firm Productivity And Institutional Quality: Evidence From Italian Industry," Journal of Regional Science, Wiley Blackwell, vol. 55(5), pages 774-800, November.
    6. Lisa Maria Dellmuth & Dominik Schraff & Michael F. Stoffel, 2017. "Distributive Politics, Electoral Institutions and European Structural and Investment Funding: Evidence from Italy and France," Journal of Common Market Studies, Wiley Blackwell, vol. 55(2), pages 275-293, March.
    7. Riccardo Crescenzi & Marco Di Cataldo & Andrés Rodríguez-Pose, 2016. "Government Quality And The Economic Returns Of Transport Infrastructure Investment In European Regions," Journal of Regional Science, Wiley Blackwell, vol. 56(4), pages 555-582, September.
    8. Aiello, Francesco & Pupo, Valeria, 2012. "Structural funds and the economic divide in Italy," Journal of Policy Modeling, Elsevier, vol. 34(3), pages 403-418.
    9. Simona Milio, 2007. "Can Administrative Capacity Explain Differences in Regional Performances? Evidence from Structural Funds Implementation in Southern Italy," Regional Studies, Taylor & Francis Journals, vol. 41(4), pages 429-442.
    10. Michele Benvenuti & Luca Casolaro & Elena Gennari, 2014. "Metrics of Innovation: Measuring the Italian Gap," Politica economica, Società editrice il Mulino, issue 1, pages 5-50.
    11. Thomas Farole & Andrés Rodríguez‐Pose & Michael Storper, 2011. "Cohesion Policy in the European Union: Growth, Geography, Institutions," Journal of Common Market Studies, Wiley Blackwell, vol. 49(5), pages 1089-1111, September.
    12. Andr�s Rodr�guez-Pose, 2013. "Do Institutions Matter for Regional Development?," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1034-1047, July.
    13. Sheila Chapman & Valentina Meliciani, 2017. "Behind the Pan-European Convergence Path: The Role of Innovation, Specialisation and Socio-economic Factors," Growth and Change, Wiley Blackwell, vol. 48(1), pages 61-90, March.
    14. Wamser, Georg & Nam, Chang Woon & Schoenberg, Alina, 2013. "The Lisbon Agenda and Innovation-oriented Cohesion Policy: A New Challenge for Economic Integration among the EU Regions," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 28, pages 37-58.
    15. Rodríguez-Pose, Andrés & Ketterer, Tobias, 2016. "Institutions vs. ‘First-Nature’ Geography – What Drives Economic Growth in Europe’s Regions?," CEPR Discussion Papers 11322, C.E.P.R. Discussion Papers.
    16. Philip McCann & Raquel Ortega-Argilés, 2013. "Modern regional innovation policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 187-216.
    17. Gianni Guastella & Francesco Timpano, 2016. "Knowledge, innovation, agglomeration and regional convergence in the EU: motivating place-based regional intervention," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 121-143, October.
    18. Gianluigi Coppola & Sergio Destefanis, 2015. "Structural Funds and Regional Convergence: Some Sectoral Estimates for Italy," AIEL Series in Labour Economics, in: Chiara Mussida & Francesco Pastore (ed.), Geographical Labor Market Imbalances, edition 127, chapter 0, pages 307-333, Springer.
    19. Proksch, Dorian & Haberstroh, Marcus Max & Pinkwart, Andreas, 2017. "Increasing the national innovative capacity: Identifying the pathways to success using a comparative method," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 256-270.
    20. Daniele Archibugi & Andrea Filippetti, 2011. "Is the Economic Crisis Impairing Convergence in Innovation Performance across Europe?," Journal of Common Market Studies, Wiley Blackwell, vol. 49(6), pages 1153-1182, November.
    21. Hsu, Po-Hsuan & Tian, Xuan & Xu, Yan, 2014. "Financial development and innovation: Cross-country evidence," Journal of Financial Economics, Elsevier, vol. 112(1), pages 116-135.
    22. Andres Rodriguez-Pose & Riccardo regstdcenzi, 2008. "Research and Development, Spillovers, Innovation Systems, and the Genesis of Regional Growth in Europe," Regional Studies, Taylor & Francis Journals, vol. 42(1), pages 51-67.
    23. Vittorio Daniele & Paolo Malanima, 2007. "Il prodotto delle regioni e il divario Nord-Sud in Italia (1861-2004)," Rivista di Politica Economica, SIPI Spa, vol. 97(2), pages 267-316, March-Apr.
    24. Riccardo Crescenzi, 2005. "Innovation and Regional Growth in the Enlarged Europe: The Role of Local Innovative Capabilities, Peripherality, and Education," Growth and Change, Wiley Blackwell, vol. 36(4), pages 471-507, September.
    25. King, Robert G. & Levine, Ross, 1993. "Finance, entrepreneurship and growth: Theory and evidence," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 513-542, December.
    26. Riccardo regstdcenzi, 2009. "Undermining the Principle of Concentration? European Union Regional Policy and the Socio-economic Disadvantage of European Regions," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 111-133.
    27. Riccardo Crescenzi & Luisa Gagliardi & Marco Percoco, 2013. "Social Capital and the Innovative Performance of Italian Provinces," Environment and Planning A, , vol. 45(4), pages 908-929, April.
    28. Pieter De Bruijn & Arnoud Lagendijk, 2005. "Regional Innovation Systems in the Lisbon strategy," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1153-1172, May.
    29. Diukanova, Olga & López-Rodríguez, Jesús, 2014. "Regional Impacts of non-R&D Innovation Expenditures across the EU Regions: Simulation Results Using the Rhomolo CGE Model," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 91-111.
    30. Rinaldo Evangelista & Valentina Meliciani & Antonio Vezzani, 2015. "The Specialisation of EU Regions in Fast Growing and Key Enabling Technologies," JRC Research Reports JRC98111, Joint Research Centre.
    31. Olivier Parent & James P. LeSage, 2012. "Determinants Of Knowledge Production And Their Effects On Regional Economic Growth," Journal of Regional Science, Wiley Blackwell, vol. 52(2), pages 256-284, May.
    32. A. Nifo & G. Vecchione, 2015. "Measuring Institutional Quality in Italy," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 157-182.
    33. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Mahendhiran Nair, 2016. "Innovation, financial development and economic growth in Eurozone countries," Applied Economics Letters, Taylor & Francis Journals, vol. 23(16), pages 1141-1144, November.
    34. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roberta Arbolino & Raffaele Boffardi, 2017. "The Impact of Institutional Quality and Efficient Cohesion Investments on Economic Growth Evidence from Italian Regions," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    2. Roberta Arbolino & Raffaele Boffardi & Luisa De Simone, 2019. "Which are the Factors Influencing Innovation Performances? Evidence from Italian Cohesion Policy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 146(1), pages 221-247, November.
    3. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    4. Andrés Rodríguez-Pose & Marco Di Cataldo, 2015. "Quality of government and innovative performance in the regions of Europe," Journal of Economic Geography, Oxford University Press, vol. 15(4), pages 673-706.
    5. Cerciello, Massimiliano & Agovino, Massimiliano & Garofalo, Antonio, 2019. "The caring hand that cripples? The effects of the European regional policy on local labour market participation in Southern Italy," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    6. Peiró-Palomino, Jesús & Perugini, Francesco, 2022. "Regional innovation disparities in Italy: The role of governance," Economic Systems, Elsevier, vol. 46(4).
    7. Rodríguez-Pose, Andrés & Bartalucci, Federico & Lozano-Gracia, Nancy & Dávalos, María, 2024. "Overcoming left-behindedness. Moving beyond the efficiency versus equity debate in territorial development," LSE Research Online Documents on Economics 125629, London School of Economics and Political Science, LSE Library.
    8. Andrés Rodríguez-Pose & Tobias Ketterer, 2020. "Institutional change and the development of lagging regions in Europe," Regional Studies, Taylor & Francis Journals, vol. 54(7), pages 974-986, July.
    9. Fernanda Ricotta, 2019. "The Quality of Regional Government and Firm Performance," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(2), pages 27-40, February.
    10. Roberto Ganau & Andrés Rodríguez‐Pose, 2019. "Do high‐quality local institutions shape labour productivity in Western European manufacturing firms?," Papers in Regional Science, Wiley Blackwell, vol. 98(4), pages 1633-1666, August.
    11. Guarini, Giulio & Laureti, Tiziana & Garofalo, Giuseppe, 2020. "Socio-institutional determinants of educational resource efficiency according to the capability approach: An endogenous stochastic frontier analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    12. Gianni Guastella & Francesco Timpano, 2016. "Knowledge, innovation, agglomeration and regional convergence in the EU: motivating place-based regional intervention," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 36(2), pages 121-143, October.
    13. K. Bruns & N. Bosma & M. Sanders & M. Schramm, 2017. "Searching for the existence of entrepreneurial ecosystems: a regional cross-section growth regression approach," Small Business Economics, Springer, vol. 49(1), pages 31-54, June.
    14. Raffaele Paci & Emanuela Marrocu, 2013. "Knowledge Assets and Regional Performance," Growth and Change, Wiley Blackwell, vol. 44(2), pages 228-257, June.
    15. Gianni Guastella & Francesco Timpano, 2012. "Increasing Returns, Decreasing Returns and Regional Economic Convergence in the EU," ERSA conference papers ersa12p344, European Regional Science Association.
    16. Federico Aresu & Emanuela Marrocu & Raffaele Paci, 2023. "Public capital and institutions' quality in the Italian regions," Journal of Regional Science, Wiley Blackwell, vol. 63(5), pages 1284-1308, November.
    17. Hamdi Becha & Maha Kalai & Kamel Helali, 2023. "Smooth transition regression model relating inflation to economic growth in Tunisia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 12(1), pages 1-26, December.
    18. Ignacio Sacristán López-Bravo & Carlos San Juan Mesonada, 2022. "Effects of Policy Mix on European Regional Convergence," EconPol Working Paper 73, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. repec:elg:eechap:14395_24 is not listed on IDEAS
    20. Giuseppe Albanese & Guido de Blasio & Andrea Locatelli, 2021. "Does EU regional policy promote local TFP growth? Evidence from the Italian Mezzogiorno," Papers in Regional Science, Wiley Blackwell, vol. 100(2), pages 327-348, April.
    21. Antonella Rita Ferrara & Rosanna Nisticò, 2019. "Does Institutional Quality Matter for Multidimensional Well-Being Inequalities? Insights from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(3), pages 1063-1105, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jqyfkm:doi:10.1432/87102:y:2017:i:1-2:p:167-192. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.