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Regional Variations in Production Network Externalities

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  • Roberta Capello
  • Peter Nijkamp

Abstract

CAPELLO R. and NIJKAMP P. (1996) Regional variations in production network externalities, Reg. Studies, 30, 225-237. In the present paper the main area of analysis is the concept of network externalities and its interpretation from a theoretical, conceptual and empirical point of view. A conceptual framework is built on the proposition that network externalities are one of the decisive reasons for entering a telecommunication network. Since externality mechanisms arise at the user side and impact on the demand function, they can be labelled “consumption network externalities”. However, this paper goes a step further than the recent literature by claiming that telecommunication networks are not only governed by consumption network externalities, but also generate production network externalities, since their advantages may be measured in terms of the performance of firms and regions. The paper presents a conceptual model on the role network externality plays on the performance of firms and regions, a methodology to measure these externalities at an empirical level and the results of the empirical analysis developed in Italy. Strong regional variations in the way network externalities are exploited emerge from the empirical analysis. CAPELLO R. et NIJKAMP P. (1996). Variations regionales dans les effets externes de production en reseaux, Reg. Studies 30, 225-237. Cet article cherche principalement a analyser la notion d'effets externes en reseaux et a l'interpreter du point de vue theorique, conceptuel et empirique. Un cadre conceptuel est etabli a partir de la proposition que les effets externes en reseaux constituent l'un des facteurs decisifs qui expliquent la participation a un reseau de telecommunications. Vu que les mecanismes des effets externes se font sentir cote usager et influent sur la fonction de demande, on peut les cataloguer comme effets externes de consommation en reseaux. Neanmoins, cet article va plus loin par rapport a la documentation recente, pretendant que les reseaux de telecommunications sont controles non seulement par des effets externes de consommation en reseaux, mais engendrent aussi des effets externes de production en reseaux, etant donne que leurs avantages peuvent etre evalues en termes de la performance des entreprises et des regions. L'article presente un modele conceptuel du role que joue les effets externes dans la performance des entreprises et des regions, une methodologie afin d'evaluer ces effets externes au niveau empirique, et les resultats de l'analyse empirique developpee en Italie. Il ressort de l'analyse empirique de fortes variations regionales dans l'exploitation des effets externes en reseaux. CAPELLO R. und NIJKAMP P. (1996). Regionale Abweichungen bei Anbieternetzexternalisierungen, Reg. Studies 30, 225-237. In dem vorliegenden Aufsatz bezieht sich das Hauptgebiet der Analyse auf das Konzept der Netzexternalisierungen und seine Interpretation vom theoretischen, konzeptuellen und empirischen Gesichtspunkt aus. Es wird ein konzeptueller Rahmen auf der Proposition errichtet, dass Netzexternalisierungen einer der entscheidenden Grunde fur den Beitritt zum Telekommunikationsnetzsystem sind. Da Externalisationsmechanismen von Seiten des Benutzers entstehen, und sich auf die Nachfragefunktion auswirken, konnen sie als Verbrauchernetzexternalisierung bezeichnet werden. Dieser Aufsatz geht jedoch einen Schritt weiter als die kuzlich erschienene Literatur, indem er die Behauptung aufstellt, dass Telekommunikationsnetze nicht von Verbrauchernetzexternalisierung bestimmt werden, sondern auch Anbieternetzexternalisierung bewirken, da ihre Vorteile unter dem Aspekt der Leistung von Firmen und Regionen verstanden und gemessen werden konnen. Dieser Aufsatz stellt ein konzeptuelles Modell der Rolle dar, die Netzexternalisierung bei der Leistung von Firmen und Regionen spielt, sowie eine Methodik der Messung dieser Externalisierungen auf empirischer Ebene und die Ergebnisse der empirischen Analyse, die in Italien entwickelt wurde. Sie weist bedeutende regionale Abweichungen in der Art und Weise der Nutzung der Netzexternalisierungen auf.

Suggested Citation

  • Roberta Capello & Peter Nijkamp, 1996. "Regional Variations in Production Network Externalities," Regional Studies, Taylor & Francis Journals, vol. 30(3), pages 225-237.
  • Handle: RePEc:taf:regstd:v:30:y:1996:i:3:p:225-237
    DOI: 10.1080/00343409612331349598
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    1. Stoneman, Paul, 1990. "The Intertemporal Demand For Consumer Technologies Requiring Joint Hardware And Software Inputs," Economic Research Papers 268390, University of Warwick - Department of Economics.
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    Cited by:

    1. Giuseppe Di Liddo, 2015. "Urban sprawl and regional growth: empirical evidence from Italian Regions," Economics Bulletin, AccessEcon, vol. 35(4), pages 2141-2160.
    2. Costantini, Mauro & Destefanis, Sergio, 2009. "Cointegration analysis for cross-sectionally dependent panels: The case of regional production functions," Economic Modelling, Elsevier, vol. 26(2), pages 320-327, March.
    3. Elizabeth A. Mack & Scott Loveridge & Thomas Keene & John Mann, 2024. "A Review of the Literature About Broadband Internet Connections and Rural Development (1995-2022)," International Regional Science Review, , vol. 47(3), pages 231-292, May.
    4. Evert Meijers & Martijn Burger & Michiel Meeteren & Zachary Neal & Ben Derudder, 2016. "Disentangling agglomeration and network externalities: A conceptual typology," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 61-80, March.
    5. Martina Aronica & Rubinia Celeste Bonfanti & Davide Piacentino, 2021. "Social media adoption in Italian firms. Opportunities and challenges for lagging regions," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 959-978, August.
    6. Lee, DukHee & Jung, MiSuk, 2009. "Economic effects of trade patterns on productivity: Evidence from the Korean automobile industry," Japan and the World Economy, Elsevier, vol. 21(1), pages 71-84, January.
    7. Bergantino, Angela Stefania & Capurso, Mauro & Toner, Jeremy, 2018. "Households’ expenditure elasticities for transport products and services: a geo-demographic approach," Working Papers 18_3, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    8. Paul Terna Gbahabo & Oluseye Samuel Ajuwon, 2019. "Mobile Broadband And Economic Growth In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(1), pages 65-78, March.
    9. Di Liddo, Giuseppe, 2015. "Urban sprawl and regional growth: empirical evidence from Italian Regions," Working Papers 1505, SIET Società Italiana di Economia dei Trasporti e della Logistica.

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