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Innovative performance effects of institutional quality: an empirical investigation from the Triad

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  • Luigi Aldieri
  • Cristian Barra
  • Nazzareno Ruggiero
  • Concetto Paolo Vinci

Abstract

Using data for a set of 823 R&D-intense manufacturing firms within the Triad and the Quality of Government (QoG) dataset over the 2002–2010 period, this article investigates the effects of institutional quality upon firms’ inefficiency, through the application of a Stochastic Frontier Approach (SFA). Empirical evidence, which is robust to alternative specifications of the technology employed and different lag structures in R&D activities, reveals that improvements in the quality of institutions significantly reduce firms’ inefficiency and suggests that, among the set of relevant institutional factors considered, a pre-eminent role is found for the rule of law.

Suggested Citation

  • Luigi Aldieri & Cristian Barra & Nazzareno Ruggiero & Concetto Paolo Vinci, 2020. "Innovative performance effects of institutional quality: an empirical investigation from the Triad," Applied Economics, Taylor & Francis Journals, vol. 52(50), pages 5464-5476, October.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:50:p:5464-5476
    DOI: 10.1080/00036846.2020.1764483
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    Cited by:

    1. Aldieri, Luigi & Makkonen, Teemu & Paolo Vinci, Concetto, 2020. "Environmental knowledge spillovers and productivity: A patent analysis for large international firms in the energy, water and land resources fields," Resources Policy, Elsevier, vol. 69(C).
    2. Cristian Barra & Nazzareno Ruggiero, 2022. "On the impact of knowledge and institutional spillovers on RIS efficiency. Evidence from Italian regional level," Growth and Change, Wiley Blackwell, vol. 53(2), pages 702-752, June.
    3. Luigi Aldieri & Cristian Barra & Nazzareno Ruggiero & Concetto Paolo Vinci, 2023. "Corruption and firms’ efficiency: international evidence using an instrumental variable approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(2), pages 731-759, July.
    4. 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.

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