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The agglomeration of knowledge-intensive business services firms

Author

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  • Valter Giacinto

    (Bank of Italy – L’Aquila Branch)

  • Giacinto Micucci

    (Bank of Italy – Ancona Branch)

  • Alessandro Tosoni

    (Bank of Italy – L’Aquila Branch)

Abstract

We analyse the geographic localization and the productivity of knowledge-intensive business services (KIBS) in Italy, using both census data and balance sheet data at the firm level. We find that KIBS are generally agglomerated in urban areas where they attain significantly higher labour productivity levels. Urban productivity advantages are found to be strongly associated with the local availability of human capital and to standard proxies of Marshall–Arrow–Romer and Jacobs agglomeration economies. Forward demand linkages and some factors impacting on the thickness of the local labour market also appear to be relevant. On the whole, the set of explanatory factors considered could explain the entire urban productivity premium estimated for Italian KIBS firms.

Suggested Citation

  • Valter Giacinto & Giacinto Micucci & Alessandro Tosoni, 2020. "The agglomeration of knowledge-intensive business services firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(3), pages 557-590, December.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:3:d:10.1007_s00168-020-00995-3
    DOI: 10.1007/s00168-020-00995-3
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    4. Adina Elena Dănulețiu, 2020. "Evolution of Romanian Management Consulting Firms from Alba County," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 871-878, December.
    5. Wang, Xuliang & Xu, Lulu & Ye, Qin & He, Shi & Liu, Yi, 2022. "How does services agglomeration affect the energy efficiency of the service sector? Evidence from China," Energy Economics, Elsevier, vol. 112(C).
    6. Sugam Agarwal & Smruti Ranjan Behera, 2022. "Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis," Indian Economic Review, Springer, vol. 57(2), pages 513-552, December.
    7. Li Yang & Dawei Wang & Yuanpeng Ji & Lizhi Xing, 2023. "On the Internal Synergistic Mechanism of Operating System of Beijing’s High-Technology Industry Chain: Evidence from Science and Technology Service Industry," Sustainability, MDPI, vol. 15(3), pages 1-17, January.

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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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