IDEAS home Printed from https://ideas.repec.org/p/uto/labeco/201210.html
   My bibliography  Save this paper

The mechanisms of knowledge governance: State owned enterprises and Italian economic growth, 1950-1994

Author

Listed:

Abstract

The grafting of the tools of communication studies on the economics of knowledge helps to investigate the mechanisms of knowledge governance. The actual economic benefits stemming from knowledge externalities depend on the characteristics of a) their sources, b) the context in which spillovers take place, c) the possible recipients. In the Italian experience between 1950-1992, state owned enterprises (SOE) have been one of the most effective mechanisms of knowledge governance. Italian SOE were very effective emissaries of knowledge externalities as they imitated the US corporate model of intramuros R&D laboratories and yet were characterized by an objective function based upon output maximization under the constraint of average profitability. Their support to the growth of the system was crucial not only with respect to the creation of basic infrastructure but also as active players in implementing effective mechanisms of knowledge governance. Research activities carried out by SOE were mainly based in upstream industries, with multiple user-producer interactions with firms active in downstream industries, and aimed at implementing a knowledge base characterized by high levels of generic content and a wide scope of application. Moreover the specific objective function of SOE favoured higher levels of knowledge generation than exploitation. These characteristics helped disseminate relevant knowledge externalities that played a strong and positive role on total factor productivity in the second part of the XX century in Italy. Their role was stronger than the knowledge externalities stemming from research activities carried out by private firms.

Suggested Citation

  • Antonelli, Cristiano & Barbiellini Amidei, Federico & Fassio, Claudio, 2012. "The mechanisms of knowledge governance: State owned enterprises and Italian economic growth, 1950-1994," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201210, University of Turin.
    • Handle: RePEc:uto:labeco:201210
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati_wp/wp2012dip_l_b/10_wp_momigliano.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    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. C. Antonelli, 2007. "Localized Technological Change," Chapters, in: Horst Hanusch & Andreas Pyka (ed.), Elgar Companion to Neo-Schumpeterian Economics, chapter 16, Edward Elgar Publishing.
    3. Toniolo, Gianni (ed.), 2013. "The Oxford Handbook of the Italian Economy Since Unification," OUP Catalogue, Oxford University Press, number 9780199936694.
    4. Saviotti, Pier Paolo, 2007. "On the dynamics of generation and utilisation of knowledge: The local character of knowledge," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 387-408, December.
    5. Zamagni, Vera, 1997. "The Economic History of Italy 1860-1990," OUP Catalogue, Oxford University Press, number 9780198292890.
    6. Robert E. Lucas, 2009. "Ideas and Growth," Economica, London School of Economics and Political Science, vol. 76(301), pages 1-19, February.
    7. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    8. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
    9. Martin L. Weitzman, 1998. "Recombinant Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(2), pages 331-360.
    10. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    11. Cristiano Antonelli & Federico Barbiellini Amidei, 2011. "The Dynamics of Knowledge Externalities," Books, Edward Elgar Publishing, number 13292.
    12. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    13. Cristiano Antonelli (ed.), 2011. "Handbook on the Economic Complexity of Technological Change," Books, Edward Elgar Publishing, number 13391.
    14. Weitzman, Martin L, 1996. "Hybridizing Growth Theory," American Economic Review, American Economic Association, vol. 86(2), pages 207-212, May.
    15. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    16. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    17. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45, National Bureau of Economic Research, Inc.
    18. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    19. Richard R. Nelson, 1982. "The Role of Knowledge in R&D Efficiency," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(3), pages 453-470.
    20. Pier Angelo Toninelli & Michelangelo Vasta, 2010. "State-owned Enterprises (1936–83)," Chapters, in: Andrea Colli & Michelangelo Vasta (ed.), Forms of Enterprise in 20th Century Italy, chapter 3, Edward Elgar Publishing.
    21. Philippe Aghion & Jean Tirole, 1994. "The Management of Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 1185-1209.
    22. Jeremy Howells & Ronnie Ramlogan & Shu-Li Cheng, 2012. "Innovation and university collaboration: paradox and complexity within the knowledge economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 36(3), pages 703-721.
    23. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    24. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    25. Agnieszka Gehringer, 2011. "Pecuniary knowledge externalities and innovation: intersectoral linkages and their effects beyond technological spillovers," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(5), pages 495-515.
    26. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    27. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
    28. Stephen Broadberry & Claire Giordano & Francesco Zollino, 2011. "A Sectoral Analysis of Italy's Development, 1861-2011," Quaderni di storia economica (Economic History Working Papers) 20, Bank of Italy, Economic Research and International Relations Area.
    29. Holger Graf, 2011. "Gatekeepers in regional networks of innovators," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(1), pages 173-198.
    30. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    31. Broadberry, Stephen & Giordano, Claire & Zollino, Francesco, 2011. "A Sectoral Analysis of Italy's Development: 1861 -2010," CAGE Online Working Paper Series 62, Competitive Advantage in the Global Economy (CAGE).
    32. Crafts,Nicholas & Toniolo,Gianni (ed.), 1996. "Economic Growth in Europe since 1945," Cambridge Books, Cambridge University Press, number 9780521499644, September.
    33. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    34. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    35. Munari, Federico & Roberts, Edward B. & Sobrero, Maurizio, 2002. "Privatization processes and the redefinition of corporate R&D boundaries," Research Policy, Elsevier, vol. 31(1), pages 31-53, January.
    36. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67(3), pages 297-297.
    37. Arrow, Kenneth J, 1969. "Classificatory Notes on the Production and Transmission of Technological Knowledge," American Economic Review, American Economic Association, vol. 59(2), pages 29-35, May.
    38. Granger, Clive W J, 1986. "Developments in the Study of Cointegrated Economic Variables," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(3), pages 213-228, August.
    39. Bruno Cassiman & Reinhilde Veugelers, 2006. "In Search of Complementarity in Innovation Strategy: Internal R& D and External Knowledge Acquisition," Management Science, INFORMS, vol. 52(1), pages 68-82, January.
    40. Metcalfe, J S, 1995. "Technology Systems and Technology Policy in an Evolutionary Framework," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 19(1), pages 25-46, February.
    41. J. Stanley Metcalfe, 2007. "Alfred Marshall's Mecca: Reconciling the Theories of Value and Development," The Economic Record, The Economic Society of Australia, vol. 83(s1), pages 1-22, September.
    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. Nascia, Leopoldo & Pianta, Mario, 2018. "Research and innovation policy in Italy," MPRA Paper 89510, University Library of Munich, Germany.
    2. Lucchese, Matteo & Nascia, Leopoldo & Pianta, Mario, 2017. "Politica industriale e tecnologia in Italia [Industrial policy and technology in Italy]," MPRA Paper 77182, University Library of Munich, Germany.
    3. Cristiano Antonelli & Christophe Feder, 2020. "Total factor productivity, catch-up and technological congruence in Italy, 1861–2010," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 1171-1194, September.
    4. Mario Benassi & Matteo Landoni, 2019. "State-owned enterprises as knowledge-explorer agents," Industry and Innovation, Taylor & Francis Journals, vol. 26(2), pages 218-241, February.
    5. Aziz, Ghazala & Sarwar, Suleman, 2023. "Revisit the role of governance indicators to achieve sustainable economic growth of Saudi Arabia – pre and post implementation of 2030 Vision," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 213-227.
    6. Gershman, Mikhail & Bredikhin, Sergey & Vishnevskiy, Konstantin, 2016. "The role of corporate foresight and technology roadmapping in companies' innovation development: The case of Russian state-owned enterprises," Technological Forecasting and Social Change, Elsevier, vol. 110(C), pages 187-195.
    7. Castelnovo, Paolo, 2022. "Innovation in private and state-owned enterprises: A cross-industry analysis of patenting activity," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 98-113.
    8. Agnieszka Gehringer & Inmaculada Martínez-Zarzoso & Felicitas Nowak-Lehmann Danzinger, 2016. "What are the drivers of total factor productivity in the European Union?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(4), pages 406-434, June.
    9. Antonelli, Cristiano & David, Paul, 2015. "Knowledge, Institutions and Economic Policy: An Introduction," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201541, University of Turin.
    10. Szarzec, Katarzyna & Dombi, Ákos & Matuszak, Piotr, 2021. "State-owned enterprises and economic growth: Evidence from the post-Lehman period," Economic Modelling, Elsevier, vol. 99(C).
    11. Matteo Lucchese & Leopoldo Nascia & Mario Pianta, 2016. "Industrial policy and technology in Italy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(3), pages 233-260, September.
    12. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2018. "Productivity growth persistence: firm strategies, size and system properties," Chapters, in: The Evolutionary Complexity of Endogenous Innovation, chapter 8, pages 176-202, Edward Elgar Publishing.
    13. Landoni, Matteo, 2020. "Knowledge creation in state-owned enterprises," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 77-85.

    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. Cristiano Antonelli, 2013. "Knowledge Governance," Economic Development Quarterly, , vol. 27(1), pages 62-70, February.
    2. Cristiano Antonelli & Federico Barbiellini Amidei, 2011. "The Dynamics of Knowledge Externalities," Books, Edward Elgar Publishing, number 13292.
    3. Cristiano Antonelli, 2011. "The Economic Complexity of Technological Change: Knowledge Interaction and Path Dependence," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 1, Edward Elgar Publishing.
    4. Cristiano Antonelli & Alessandra Colombelli, 2018. "The cost of knowledge," Chapters, in: The Evolutionary Complexity of Endogenous Innovation, chapter 6, pages 128-150, Edward Elgar Publishing.
    5. Cristiano Antonelli, 2007. "Localized Technological Knowledge: Pecuniary Knowledge Externalities And Appropriability," Papers on Economics and Evolution 2007-09, Philipps University Marburg, Department of Geography.
    6. Antonelli Cristiano & Ferraris Gianluigi, 2012. "Endogenous knowledge externalities: an agent based simulation model where schumpeter meets Marshall," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201202, University of Turin.
    7. Quatraro, Francesco, 2008. "Regional Knowledge Base and Productivity Growth: The Evidence of Italian Manufacturing," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 200810, University of Turin.
    8. Antonelli, Cristiano, 2013. "Globalization Localized Technological Change and the Knowledge Economy," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201325, University of Turin.
    9. Antonelli Cristiano & Colombelli Alessandra, 2013. "Knowledge cumulability and complementarity in the knowledge generation function," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201305, University of Turin.
    10. Cristiano Antonelli, 2010. "Pecuniary Externalities and the Localized Generation of Technological Knowledge," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 7, Edward Elgar Publishing.
    11. Antonelli, Cristiano & Fassio, Claudio, 2012. "University-industry relations and the evolution of knowledge governance. the italian evidence in the first part of the xx century," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201212, University of Turin.
    12. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    13. Cristiano Antonelli & Giuseppe Scellato, 2013. "Complexity and technological change: knowledge interactions and firm level total factor productivity," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 77-96, January.
    14. Darcy W E Allen, 2020. "When Entrepreneurs Meet:The Collective Governance of New Ideas," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number q0269, December.
    15. Emrah Sofuoğlu & Oktay Kızılkaya & Emrah Koçak, 2022. "Assessing the Impact of High-Technology Exports on the Growth of the Turkish Economy," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(1), pages 205-229, January.
    16. 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.
    17. Quatraro, Francesco, 2010. "Knowledge coherence, variety and economic growth: Manufacturing evidence from Italian regions," Research Policy, Elsevier, vol. 39(10), pages 1289-1302, December.
    18. Antonelli Cristiano, 2012. "Compulsory licensing: the foundations of an institutional innovation," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201207, University of Turin.
    19. Agnieszka Gehringer, 2011. "Pecuniary Knowledge Externalities across European Countries—Are there Leading Sectors?," Industry and Innovation, Taylor & Francis Journals, vol. 18(4), pages 415-436.
    20. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:uto:labeco:201210. 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: Piero Cavaleri or Marina Grazioli (email available below). General contact details of provider: https://edirc.repec.org/data/leifrit.html .

    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.