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Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?

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  • Anna M. Ferragina

    (University of Salerno)

  • Giulia Nunziante

    (University of Roma 2 “Tor Vergata”)

Abstract

This paper aims to address three main issues. First, we investigate the relevance of spatial total factor productivity (TFP) spillovers determined by firm closeness in the Italian Local Labour Systems (LLS) of Textile. Secondly, we assess the relevance in these locations of TFP premia deriving from firm innovation, taking into account spatial and sectoral innovation. Then, we question how far spatial productivity spillovers and TFP premia spur from innovation of foreign and domestic multinationals located in the LLSs. To this purpose, we use a panel of Italian manufacturing firms for 2007 and 2010 (AIDA data) and focus on 18 Made in Italy LLS of Textile. We employ a spatial econometric approach (spatial autoregressive and spatial error models) by using the geographical coordinates at firm level. We find strong productivity spillovers at spatial level and a relevant impact of innovation on firm productivity. Evidence is also found of a positive impact of intra-sectoral innovation and from concentration of foreign firms innovation in the LLSs.

Suggested Citation

  • Anna M. Ferragina & Giulia Nunziante, 2018. "Are Italian firms performances influenced by innovation of domestic and foreign firms nearby in space and sectors?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(3), pages 335-360, September.
    • Handle: RePEc:spr:epolin:v:45:y:2018:i:3:d:10.1007_s40812-018-0090-4
    DOI: 10.1007/s40812-018-0090-4
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    Cited by:

    1. Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    2. Gökhan Önder & Cemil Ulukan, 2020. "Innovation and the network position of firms: the case of the Eskişehir–Bilecik–Kütahya ceramic cluster in Turkey," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 47(4), pages 589-612, December.

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    More about this item

    Keywords

    Multifactor productivity; Technological change; Spatial models; Size and spatial distributions of regional economic activity; Multinational firms;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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