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Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata

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  • Aiello, Francesco
  • Cardamone, Paola

Abstract

This paper assesses the impact of Research and Development (R&D) efforts on production in the North and Centre-South of Italy by using a panel of 1,203 manufacturing firms over the period 1998–2003. The estimations are based on a nonlinear translog production function augmented by a measure of R&D spillovers. This measure combines the geographical distance between firms, the technological similarity within each pair of firms and the technical efficiency of each firm. The estimation method takes into account the endogeneity of regressors and the potential sample selection issue regarding firms’ decisions to invest in R&D. The two main results are as follows. Internal and external R&D have a lower impact in the Centre-South of Italy than in the rest of the country and they are weak substitutes whatever the area.

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Bibliographic Info

Article provided by Elsevier in its journal Structural Change and Economic Dynamics.

Volume (Year): 23 (2012)
Issue (Month): 3 ()
Pages: 205-220

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Handle: RePEc:eee:streco:v:23:y:2012:i:3:p:205-220

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Web page: http://www.elsevier.com/locate/inca/525148

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Keywords: R&D spillovers; Italian economic divide; Translog production function; Technical efficiency;

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Cited by:
  1. Qureshi, Mahvash Saeed & Tsangarides, Charalambos G., 2012. "Hard or Soft Pegs? Choice of Exchange Rate Regime and Trade in Africa," World Development, Elsevier, vol. 40(4), pages 667-680.
  2. Aiello, Francesco & Castiglione, Concetta, 2014. "Being efficient to stay strong in a weak economy. The case of calabrian manufacturing firms," MPRA Paper 54366, University Library of Munich, Germany.
  3. Succurro, Marianna, 2014. "Intangible assets finance: a complementary or substitution effect between external and internal channels? Evidence from the Italian divide," MPRA Paper 57247, University Library of Munich, Germany.
  4. Cardamone, Paola, 2014. "R&D, spatial proximity and productivity at firm level: evidence from Italy," MPRA Paper 57149, University Library of Munich, Germany.

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