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Spatial Agglomeration, Production Technology and the Choice to Make and/or Buy: Empirical Evidence from the Emilia Romagna Machine Tool Industry

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  • Roberto Antonietti
  • Maria Rosaria Ferrante
  • Riccardo Leoncini

Abstract

Antonietti R., Ferrante M. R. and Leoncini R. Spatial agglomeration, production technology and the choice to make and/or buy: empirical evidence from the Emilia Romagna machine tool industry, Regional Studies . Using a new firm-level dataset, the decision, and relative intensity, to source either fully or partially production activities by small mechanical firms in the Emilia Romagna region of Italy is analysed. A hurdle negative binomial model is estimated, controlling for endogeneity and composition of the production process. Full outsourcing is positively related to the share of skilled personnel, the presence abroad and the employment density in neighbouring firms. Concurrent sourcing is affected by firm size, age and labour cost. The insensitivity of concurrent outsourcing to the industry's spatial concentration reflects the lower transaction costs compared with full outsourcing.

Suggested Citation

  • Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2014. "Spatial Agglomeration, Production Technology and the Choice to Make and/or Buy: Empirical Evidence from the Emilia Romagna Machine Tool Industry," Regional Studies, Taylor & Francis Journals, vol. 48(2), pages 284-300, February.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:2:p:284-300
    DOI: 10.1080/00343404.2012.657169
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    References listed on IDEAS

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    1. Yukako Ono, 2001. "Outsourcing business service and the scope of local markets," Working Paper Series WP-01-09, Federal Reserve Bank of Chicago.
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    Cited by:

    1. Roberto Antonietti, 2016. "From outsourcing to productivity, passing through training: microeconometric evidence from Italy," Industry and Innovation, Taylor & Francis Journals, vol. 23(5), pages 407-425, July.
    2. Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), 2015. "Innovation and Entrepreneurship in the Global Economy," Books, Edward Elgar Publishing, number 15906.
    3. Davide Antonioli & Simone Borghesi & Massimiliano Mazzanti, 2014. "Are Regional Systems Greening the Economy? the Role of Environmental Innovations and Agglomeration Forces," Working Papers 2014.42, Fondazione Eni Enrico Mattei.
    4. Riccardo Leoncini & Giulia Vecchiato & Luca Zamparini, 2020. "Triggering cooperation among firms: an empirical assessment of the Italian Network Contract Law," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 357-380, July.
    5. Antonietti, Roberto & Cainelli, Giulio & Lupi, Claudio, 2013. "Vertical disintegration and spatial co-localization: The case of Kibs in the metropolitan region of Milan," Economics Letters, Elsevier, vol. 118(2), pages 360-363.
    6. Roberto Antonietti & Giulio Cainelli, 2012. "Urban size and KIBS vertical disintegration: Evidence from Lombardy," ERSA conference papers ersa12p666, European Regional Science Association.
    7. Roberto Antonietti & Maria Rosaria Ferrante & Riccardo Leoncini, 2015. "Infrastructure endowment, social capital and outsourcing: evidence from Emilia Romagna, Italy," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 13, pages 310-330, Edward Elgar Publishing.
    8. Davide Antonioli & Massimiliano Mazzanti & Sandro Montresor & Paolo Pini, 2015. "Outsourcing and Firm Productivity in a Specific Local Production System: Evidence from Reggio Emilia (Italy)," Growth and Change, Wiley Blackwell, vol. 46(2), pages 292-320, June.

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