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Innovation in Industrial Districts: Evidence from Italy

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  • Giulio Cainelli
  • Nicola De Liso

Abstract

The aim of this paper is to show that Italian manufacturing firms belonging to Marshallian industrial districts carry out a higher innovative effort than is usually acknowledged. The empirical analysis makes use of a panel of 1,218 district and non-district firms belonging to traditional sectors. Data refers to the years 1992 and 1995. We have estimated an augmented Cobb-Douglas production function. The estimates make it possible to empirically identify three different determinants of firms' productivity: (i) the intentional innovative activity; (ii) the “district effect”; and (iii) the joint district and innovation effect. The results show that firms' membership in industrial districts and product innovations are key factors in explaining the productivity of firms working in traditional Italian sectors.

Suggested Citation

  • Giulio Cainelli & Nicola De Liso, 2005. "Innovation in Industrial Districts: Evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 12(3), pages 383-398.
    • Handle: RePEc:taf:indinn:v:12:y:2005:i:3:p:383-398
    DOI: 10.1080/13662710500195991
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    References listed on IDEAS

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    1. Giacomo Becattini & Marco Bellandi & Gabi Dei Ottati & Fabio Sforzi, 2003. "From Industrial Districts to Local Development," Books, Edward Elgar Publishing, number 2884.
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    Cited by:

    1. Cainelli, Giulio & Ganau, Roberto, 2021. "Knowledge spillovers, related variety and firm heterogeneity," LSE Research Online Documents on Economics 114858, London School of Economics and Political Science, LSE Library.
    2. Raffaele Trequattrini & Rosa Lombardi & Alessandra Lardo & Benedetta Cuozzo, 2018. "The Impact of Entrepreneurial Universities on Regional Growth: a Local Intellectual Capital Perspective," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 199-211, March.
    3. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Wiley Blackwell, vol. 39(3), pages 414-435, September.
    4. Rafael Boix & Joan Trullén, 2009. "Industrial Districts, Innovation and I-district Effect: Territory or Industrial Specialization?," European Planning Studies, Taylor & Francis Journals, vol. 18(10), pages 1707-1729, February.
    5. María José Ruiz-Ortega & Gloria Parra-Requena & Pedro Manuel García-Villaverde, 2016. "Do Territorial Agglomerations Still Provide Competitive Advantages? A Study of Social Capital, Innovation, and Knowledge," International Regional Science Review, , vol. 39(3), pages 259-290, July.
    6. Francesco Quatraro, 2009. "Diffusion of Regional Innovation Capabilities: Evidence from Italian Patent Data," Regional Studies, Taylor & Francis Journals, vol. 43(10), pages 1333-1348, December.
    7. Manuel Lopez-Estornell & Ignacio Fernández de Lucio, 2011. "Knowledge and performance in innovative firms: An analysis of district and inter-district effects," ERSA conference papers ersa11p361, European Regional Science Association.
    8. Marco Bellandi & María J. Ruiz‐Fuensanta, 2010. "An empirical analysis of district external economies based on a structure‐conduct‐performance framework," Papers in Regional Science, Wiley Blackwell, vol. 89(4), pages 801-818, November.
    9. José Antonio Belso-Martínez & F. Xavier Molina-Morales, 2011. "The drivers of the open district development: a social capital approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(2), pages 49-70, June.
    10. Roberto Antonietti, 2015. "Does Local Creative Employment Affect Firm Innovativeness? Microeconometric Evidence from Italy," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2015(3), pages 5-29.
    11. Roberta Apa & Valentina De Marchi & Roberto Grandinetti & Silvia Rita Sedita, 2021. "University-SME collaboration and innovation performance: the role of informal relationships and absorptive capacity," The Journal of Technology Transfer, Springer, vol. 46(4), pages 961-988, August.

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