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Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts

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  • GIULIO CAINELLI

Abstract

The aim of this paper is to analyse the impact on firms' productivity of innovative activities and agglomeration effects among firms belonging to Marshallian industrial districts and the possible joint effect of these two forces. We study a sample of 2,821 firms active in the Italian manufacturing industry in the period 1992-1995. Our analysis uses an original data set based on three different Istituto Nazionale di Statistica statistical sources-Community Innovation Survey, Archivio Statistico delle Imprese Attive (Italian Business Register), and Sistema dei Conti delle Imprese (Italian Structural Business Statistics)-to estimate an "augmented" Cobb-Douglas production function to account for the impact of technological innovations and district-specific agglomeration effects on a firm's productivity growth. Our data set allows us to distinguish between product and process innovations, thus, through econometric analysis, we hope to achieve a better understanding of which of these two types of innovative activities benefits most from participation in an industrial district. Our empirical results show that belonging to an industrial district and making product innovations are key factors in the productivity growth of firms and that product innovations appear to have a greater effect on the economic performance of district rather than non-district firms. Copyright (c) 2008 Copyright the Authors. Journal compilation (c) 2008 Wiley Periodicals, Inc..

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 39 (2008)
Issue (Month): 3 ()
Pages: 414-435

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Handle: RePEc:bla:growch:v:39:y:2008:i:3:p:414-435

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Cited by:
  1. Matthias Duschl & Tobias Scholl & Thomas Brenner & Dennis Luxen & Falk Raschke, 2012. "Industry-specific firm growth and aggolmeration," Working Papers on Innovation and Space 2012-06, Philipps University Marburg, Department of Geography.
  2. Costantini, Valeria & Mazzanti, Massimiliano & Montini, Anna, 2013. "Environmental performance, innovation and spillovers. Evidence from a regional NAMEA," Ecological Economics, Elsevier, vol. 89(C), pages 101-114.
  3. Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2011. "Environmental Innovations, Local Networks and Internationalization," Working Papers 2011.20, Fondazione Eni Enrico Mattei.
  4. Jaenicke, Edward C. & Goetz, Stephan J. & Wu, Ping-Chao & Dimitri, Carolyn, 2009. "Identifying and Measuring the Effect of Firm Clusters Among Certified Organic Processors and Handlers," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49205, Agricultural and Applied Economics Association.
  5. repec:ris:cieodp:2013_020 is not listed on IDEAS
  6. Vaz, Eric, 2013. "The Spatial Business Landscape of India," Journal of Spatial and Organizational Dynamics, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, vol. 1(4), pages 241-253.
  7. Marasteanu, I. Julia & Jaenicke, Edward C., 2013. "Agglomeration and Spatial Dependence in Certified Organic Operations in the United States," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149551, Agricultural and Applied Economics Association.
  8. Elias Sanidas & Hyeri Park, 2011. "Korean Augmented Production Function: The Role Of Services And Other Factors In Korea¡¯S Economic Growth Of Industries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(1), pages 59-85, March.
  9. 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.

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