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Servitization and territorial self reinforcing mechanisms: a new approach to regional competitiveness

Author

Listed:
  • Marino, Domenico

    (Mediterranean University, Reggio Calabria, Italy)

  • Trapasso, Raffaele

    (Centre for Entrepreneurship, SMEs, Regions and Cities, OECD.)

Abstract

The present paper discusses a theoretical model to explain the link between servitization and territorial competitiveness based on the situation in Italy. A key assumption of the model is that once the link between manufacturing and KIBS is established within a TES, there is a positive feedback between the increasing productivity (competitiveness) and the link between firms and KIBS, which becomes stronger and stronger triggering a self-reinforcing dynamic. This means that every evolutionary step of the system influences the next and thus the evolution of the entire system, so generating path dependence. Such a system has a high number of asymptotic states, and the initial state (time zero), unforeseen shocks, or other kinds of fluctuations, can lead the system into any of the different domains of the asymptotic states (1). In other words, both the theoretical assumptions and the empirical model outlined in this paper demonstrate that when a functional relationship between manufacturing and services is established (servitization), economic performance is positive or very positive.

Suggested Citation

  • Marino, Domenico & Trapasso, Raffaele, 2020. "Servitization and territorial self reinforcing mechanisms: a new approach to regional competitiveness," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 48, pages 85-93.
  • Handle: RePEc:ris:invreg:0449
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    Cited by:

    1. Domenico Marino & Domenico Tebala, 2022. "Rural Areas and Well-Being in EU Countries + UK: A Taxonomy and a Cluster Analysis," Sustainability, MDPI, vol. 14(22), pages 1-15, November.

    More about this item

    Keywords

    Servitization; Self-Reinforcing Mechanism; Regional Policies.;
    All these keywords.

    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
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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