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How do dimensions of institutional quality improve Italian regional innovation system efficiency? The Knowledge production function using SFA

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  • Cristian Barra

    (University of Salerno)

  • Nazzareno Ruggiero

    (University of Salerno)

Abstract

This paper investigates the contribution of different dimensions of institutional quality on the efficiency of the Italian regional innovation system (RIS) through the application of a knowledge production function estimated within a Stochastic Frontier Analysis environment. Though most of the dimensions of institutional quality considered in the analysis are found to play no role in affecting RIS efficiency, we detect a positive and highly significant impact of government effectiveness on the variable of interest. This result is robust to different assumptions about the underlying technology, to alternative lag structures between R&D and patenting activities and to the application of different R&D inputs. Moreover, this evidence is confirmed once instead of the RIS efficiency, we appraise the impact of institutional quality on the amount of registered patents, through the application of a canonical knowledge production function. In terms of policy implications, our analysis indicates that measures that strengthen the endowment of regional socio-economic structures are highly recommended as they enhance the efficiency of the RIS and stimulate patenting activities. Finally, interventions for Southern regions should be designed to reduce the technological and efficiency gap with the most advanced regions in the country.

Suggested Citation

  • Cristian Barra & Nazzareno Ruggiero, 2022. "How do dimensions of institutional quality improve Italian regional innovation system efficiency? The Knowledge production function using SFA," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 591-642, April.
    • Handle: RePEc:spr:joevec:v:32:y:2022:i:2:d:10.1007_s00191-022-00765-8
    DOI: 10.1007/s00191-022-00765-8
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    10. Matthias Siller & Christoph Hauser & Janette Walde & Gottfried Tappeiner, 2015. "Measuring regional innovation in one dimension: More lost than gained?," Working Papers 2015-14, Faculty of Economics and Statistics, Universität Innsbruck.
    11. Paola Cardamone, 2018. "Firm innovation and spillovers in Italy: Does geographical proximity matter?," Letters in Spatial and Resource Sciences, Springer, vol. 11(1), pages 1-16, March.
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    More about this item

    Keywords

    Regional innovation system efficiency; Knowledge production function; SFA; Institutional quality; Knowledge spillover;
    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
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output 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)

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