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The Role of Specialisation and Diversity Externalities in the Agglomeration of Innovative Activities

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  • Raffaele PACI

    ()

  • Stefano USAI

    ()

Abstract

This paper contributes to the analysis of the process of spatial agglomeration of innovative activities by investigating directly its determinants. Our main purpose is to identify the extent to which the degree of industrial specialisation or diversity in a region may affect the innovative output in a particular local industry. Moreover, we test if any relevant difference arises with respect to the role of diversity in metropolitan areas and in high-tech sectors. The analysis was carried out thanks to an original databank on innovation and production across Italian local labour systems (see http://www.crenos.unica.it). According to the estimation results there are clear signs of the two types of externalities working simultaneously: Marshall externalities (or localisation economies), associated to industrial specialisation within the sector and also within the science base cluster; and Jacobs externalities (or urbanisation economies), associated to the degree of diversity of both the local districts and the science base cluster. Moreover, industrial diversity in the local system plays a different role depending on the dimension of the local system (whether it is a metropolitan area or not) and on the type of industry (high vs. low tech sectors).

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Bibliographic Info

Article provided by SIE - Societa' Italiana degli Economisti (I) in its journal Rivista Italiana degli Economisti.

Volume (Year): 5 (2000)
Issue (Month): 2 (August)
Pages: 237-268

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Handle: RePEc:rie:review:v:5:y:2000:i:2:n:2

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Cited by:
  1. R. Naylor, 2001. "Industry profits and market size under bilateral oligopoly," Working Paper CRENoS 200108, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Giulio Caianelli & Riccardo Leoncini & Anna Montini, 2001. "Struttura produttiva e sviluppo regionale di lungo periodo in Italia," Moneta e Credito, Economia civile, vol. 54(216), pages 461-485.
  3. R. Naylor, 2001. "Firm profits and the number of firms under unionised oligopoly," Working Paper CRENoS 200109, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Luca Pieroni & Fabrizio Pompei, 2008. "Evaluating innovation and labour market relationships: the case of Italy," Cambridge Journal of Economics, Oxford University Press, vol. 32(2), pages 325-347, March.
  5. Roberta Piergiovanni & Martin Carree & Enrico Santarelli, 2012. "Creative industries, new business formation, and regional economic growth," Small Business Economics, Springer, vol. 39(3), pages 539-560, October.
  6. C. Antonelli & R. Marchionatti & S. Usai, 2000. "Productivity and External Knowledge: The Italian Case," Working Paper CRENoS 200009, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  7. R. Paci & R. Pala & E. Marrocu, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  8. Raffaello Bronzini, 2004. "Foreign Direct Investment and Agglomeration: Evidence from Italy," ERSA conference papers ersa04p321, European Regional Science Association.
  9. M. Musumeci, 2000. "Innovazione tecnologica e beni culturali. Uno studio sulla situazione della Sicilia," Working Paper CRENoS 200008, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  10. LR. Keller & E. Strazzera, 2000. "Examining predictive models among discounting models," Working Paper CRENoS 200005, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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