IDEAS home Printed from https://ideas.repec.org/a/spr/epolin/v45y2018i3d10.1007_s40812-018-0090-4.html
   My bibliography  Save this article

Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?

Author

Listed:
  • Anna M. Ferragina

    (University of Salerno)

  • Giulia Nunziante

    (University of Roma 2 “Tor Vergata”)

Abstract

This paper aims to address three main issues. First, we investigate the relevance of spatial total factor productivity (TFP) spillovers determined by firm closeness in the Italian Local Labour Systems (LLS) of Textile. Secondly, we assess the relevance in these locations of TFP premia deriving from firm innovation, taking into account spatial and sectoral innovation. Then, we question how far spatial productivity spillovers and TFP premia spur from innovation of foreign and domestic multinationals located in the LLSs. To this purpose, we use a panel of Italian manufacturing firms for 2007 and 2010 (AIDA data) and focus on 18 Made in Italy LLS of Textile. We employ a spatial econometric approach (spatial autoregressive and spatial error models) by using the geographical coordinates at firm level. We find strong productivity spillovers at spatial level and a relevant impact of innovation on firm productivity. Evidence is also found of a positive impact of intra-sectoral innovation and from concentration of foreign firms innovation in the LLSs.

Suggested Citation

  • Anna M. Ferragina & Giulia Nunziante, 2018. "Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 335-360, September.
    • Handle: RePEc:spr:epolin:v:45:y:2018:i:3:d:10.1007_s40812-018-0090-4
    DOI: 10.1007/s40812-018-0090-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s40812-018-0090-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s40812-018-0090-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Jonathan E. Haskel & Sonia C. Pereira & Matthew J. Slaughter, 2007. "Does Inward Foreign Direct Investment Boost the Productivity of Domestic Firms?," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 482-496, August.
    2. Giuseppe Medda & Claudio Piga, 2014. "Technological spillovers and productivity in Italian manufacturing firms," Journal of Productivity Analysis, Springer, vol. 41(3), pages 419-434, June.
    3. Lisa De Propris & Nigel Driffield, 2006. "The importance of clusters for spillovers from foreign direct investment and technology sourcing," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(2), pages 277-291, March.
    4. Holger Görg & David Greenaway, 2016. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 9, pages 163-189, World Scientific Publishing Co. Pte. Ltd..
    5. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    6. Chhair, Sokty & Newman, Carol, 2014. "Clustering, competition, and spillover effects: Evidence from Cambodia," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).
    7. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
    8. Corinne Autant-Bernard, 2012. "Spatial Econometrics of Innovation: Recent Contributions and Research Perspectives," Spatial Economic Analysis, Taylor & Francis Journals, vol. 7(4), pages 403-419, December.
    9. Andrea Caragliu & Peter Nijkamp, 2012. "The impact of regional absorptive capacity on spatial knowledge spillovers: the Cohen and Levinthal model revisited," Applied Economics, Taylor & Francis Journals, vol. 44(11), pages 1363-1374, April.
    10. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    11. Dietmar Harhoff, 1998. "R&D and Productivity in German Manufacturing Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 29-50.
    12. Rosina Moreno & Raffaele Paci & Stefano Usai, 2005. "Spatial Spillovers and Innovation Activity in European Regions," Environment and Planning A, , vol. 37(10), pages 1793-1812, October.
    13. Badi H. Baltagi & Peter H. Egger & Michaela Kesina, 2016. "Firm‐Level Productivity Spillovers in China's Chemical Industry: A Spatial Hausman‐Taylor Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(1), pages 214-248, January.
    14. Rosenthal, Stuart S. & Strange, William C., 2001. "The Determinants of Agglomeration," Journal of Urban Economics, Elsevier, vol. 50(2), pages 191-229, September.
    15. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    16. Valter Di Giacinto & Matteo Gomellini & Giacinto Micucci & Marcello Pagnini, 2014. "Mapping local productivity advantages in Italy: industrial districts, cities or both?," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 365-394.
    17. Oliviero Carboni, 2013. "Spatial and industry proximity in collaborative research: evidence from Italian manufacturing firms," The Journal of Technology Transfer, Springer, vol. 38(6), pages 896-910, December.
    18. Luc Anselin & Attila Varga & Zoltan Acs, 2008. "Local Geographic Spillovers Between University Research and High Technology Innovations," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 9, pages 95-121, Edward Elgar Publishing.
    19. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739, Elsevier.
    20. Henderson, J. Vernon, 2003. "Marshall's scale economies," Journal of Urban Economics, Elsevier, vol. 53(1), pages 1-28, January.
    21. Oliviero A. Carboni, 2013. "A spatial analysis of R&D: the role of industry proximity," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(8), pages 820-839, November.
    22. Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
    23. Emanuela Marrocu & Raffaele Paci & Stefano Usai, 2013. "Productivity Growth In The Old And New Europe: The Role Of Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 418-442, August.
    24. Corinne Autant‐Bernard & James P. LeSage, 2011. "Quantifying Knowledge Spillovers Using Spatial Econometric Models," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 471-496, August.
    25. Barbara Dettori & Emanuela Marrocu & Raffaele Paci, 2012. "Total Factor Productivity, Intangible Assets and Spatial Dependence in the European Regions," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1401-1416, November.
    26. Bottazzi, Laura & Peri, Giovanni, 2003. "Innovation and spillovers in regions: Evidence from European patent data," European Economic Review, Elsevier, vol. 47(4), pages 687-710, August.
    27. Nigel Driffield, 2006. "On the search for spillovers from foreign direct investment (FDI) with spatial dependency," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 107-119.
    28. Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
    29. Sokty Chhair & Carol Newman, 2014. "Clustering, Competition, and Spillover Effects: Evidence from Cambodia," WIDER Working Paper Series wp-2014-065, World Institute for Development Economic Research (UNU-WIDER).
    30. Cristiano Antonelli & Pier Paolo Patrucco & Francesco Quatraro, 2011. "Productivity Growth and Pecuniary Knowledge Externalities: An Empirical Analysis of Agglomeration Economies in European Regions," Economic Geography, Clark University, vol. 87(1), pages 23-50, January.
    31. Davide Castellani & Antonello Zanfei, 2007. "Internationalisation, Innovation and Productivity: How Do Firms Differ in Italy?," The World Economy, Wiley Blackwell, vol. 30(1), pages 156-176, January.
    32. Anna Ferragina & Fernanda Mazzotta, 2015. "Agglomeration economies in Italy: impact on heterogeneous firms’ exit in a multilevel framework," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(4), pages 395-440, December.
    33. Breschi, Stefano & Malerba, Franco, 2001. "The Geography of Innovation and Economic Clustering: Some Introductory Notes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 817-833, December.
    34. Glenn Ellison & Edward L. Glaeser & William R. Kerr, 2010. "What Causes Industry Agglomeration? Evidence from Coagglomeration Patterns," American Economic Review, American Economic Association, vol. 100(3), pages 1195-1213, June.
    35. Giacomo Becattini & Marco Bellandi & Lisa De Propis (ed.), 2009. "A Handbook of Industrial Districts," Books, Edward Elgar Publishing, number 12736.
    36. Francesco Aiello & Valeria Pupo, 2004. "Il tasso di rendimento degli investimenti in ricerca e sviluppo delle imprese innovatrici italiane," Rivista di Politica Economica, SIPI Spa, vol. 94(3), pages 81-118, May-June.
    37. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 70(2), pages 317-341.
    38. J. Elhorst, 2010. "Applied Spatial Econometrics: Raising the Bar," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(1), pages 9-28.
    39. Corinne Autant-Bernard & James Lesage, 2011. "Quantifying knowledge spillovers using spatial econometric tools," Post-Print halshs-00617709, HAL.
    40. Anna Ferragina & Fernanda Mazzotta, 2014. "FDI spillovers on firm survival in Italy: absorptive capacity matters!," The Journal of Technology Transfer, Springer, vol. 39(6), pages 859-897, December.
    41. Michael J. Orlando, 2000. "On the importance of geographic and technological proximity for R&D spillovers : an empirical investigation," Research Working Paper RWP 00-02, Federal Reserve Bank of Kansas City.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    2. Gökhan Önder & Cemil Ulukan, 2020. "Innovation and the network position of firms: the case of the Eskişehir–Bilecik–Kütahya ceramic cluster in Turkey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(4), pages 589-612, December.

    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. Cardamone, Paola, 2014. "R&D, spatial proximity and productivity at firm level: evidence from Italy," MPRA Paper 57149, University Library of Munich, Germany.
    2. Paola Cardamone, 2017. "A Spatial Analysis of the R&D-Productivity Nexus at Firm Level," Growth and Change, Wiley Blackwell, vol. 48(3), pages 313-335, September.
    3. Paola Cardamone, 2018. "Firm innovation and spillovers in Italy: Does geographical proximity matter?," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 1-16, March.
    4. Rosina Moreno & Ernest Miguélez, 2012. "A Relational Approach To The Geography Of Innovation: A Typology Of Regions," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 492-516, July.
    5. Dongwoo Kang & Sandy Dall’erba, 2016. "Exploring the spatially varying innovation capacity of the US counties in the framework of Griliches’ knowledge production function: a mixed GWR approach," Journal of Geographical Systems, Springer, vol. 18(2), pages 125-157, April.
    6. Autant-Bernard, Corinne & Fadairo, Muriel & Massard, Nadine, 2013. "Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence," Research Policy, Elsevier, vol. 42(1), pages 196-210.
    7. Gianni Guastella & Frank G. van Oort, 2015. "Regional Heterogeneity and Interregional Research Spillovers in European Innovation: Modelling and Policy Implications," Regional Studies, Taylor & Francis Journals, vol. 49(11), pages 1772-1787, November.
    8. Antonelli, Cristiano & Crespi, Francesco & Quatraro, Francesco, 2022. "Knowledge complexity and the mechanisms of knowledge generation and exploitation: The European evidence," Research Policy, Elsevier, vol. 51(8).
    9. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    10. Ernest Miguélez & Rosina Moreno, 2013. "Do Labour Mobility and Technological Collaborations Foster Geographical Knowledge Diffusion? The Case of European Regions," Growth and Change, Wiley Blackwell, vol. 44(2), pages 321-354, June.
    11. Timo Mitze & Teemu Makkonen, 2020. "When interaction matters: the contingent effects of spatial knowledge spillovers and internal R&I on firm productivity," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1088-1120, August.
    12. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    13. Cabrer-Borras, Bernardi & Serrano-Domingo, Guadalupe, 2007. "Innovation and R&D spillover effects in Spanish regions: A spatial approach," Research Policy, Elsevier, vol. 36(9), pages 1357-1371, November.
    14. Elif Bascavusoglu-Moreau & Qian Cher Li, 2013. "Knowledge Spillovers & Sources of Knowledge in the Manufacturing Sector: Literature Review & Empirical Evidence for the UK," Working Papers wp451, Centre for Business Research, University of Cambridge.
    15. Andrea Bonaccorsi & Cinzia Daraio, 2013. "Knowledge spillover effects at the sub-regional level. Theory and estimation," DIAG Technical Reports 2013-13, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    16. Marrocu, Emanuela & Paci, Raffaele & Usai, Stefano, 2013. "Proximity, networking and knowledge production in Europe: What lessons for innovation policy?," Technological Forecasting and Social Change, Elsevier, vol. 80(8), pages 1484-1498.
    17. Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    18. Lööf, Hans, 2022. "What prevents spillovers from the pool of knowledge?," Working Paper Series in Economics and Institutions of Innovation 489, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    19. Aiello, Francesco & Cardamone, Paola, 2012. "Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 205-220.
    20. Ernest Miguele & Rosina Moreno, 2012. "Do labour mobility and networks foster geographical knowledge diffusion? The case of European regions," Working Papers XREAP2012-14, Xarxa de Referència en Economia Aplicada (XREAP), revised Jul 2012.

    More about this item

    Keywords

    Multifactor productivity; Technological change; Spatial models; Size and spatial distributions of regional economic activity; Multinational firms;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

    Statistics

    Access and download statistics

    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:spr:epolin:v:45:y:2018:i:3:d:10.1007_s40812-018-0090-4. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.