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Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata

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  • Aiello, Francesco
  • Cardamone, Paola

Abstract

This paper assesses the impact of R&D efforts on production in the North and Centre-South of Italy by using a panel of 1203 manufacturing firms over the period 1998-2003. The estimations are based on a nonlinear translog production function augmented by a measure of R&D spillovers. This measure combines the geographical distance between firms, the technological similarity within each pair of firms and the technical efficiency of each firm. The estimation method takes into account the endogeneity of regressors and the potential sample selection issue regarding firms’ decision to invest in R&D. Results show that the external stock of technology exerts a higher impact in the Centre-South of Italy. Finally, it emerges that R&D capital and R&D spillovers are substitutes for Northern firms and complements for Centre-Southern firms.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22572.

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Date of creation: 10 May 2010
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Handle: RePEc:pra:mprapa:22572

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Keywords: R&D spillovers; Italian economic divide; translog production function; technical efficiency;

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Citations

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Cited by:
  1. Aiello, Francesco & Castiglione, Concetta, 2014. "Being efficient to stay strong in a weak economy. The case of calabrian manufacturing firms," MPRA Paper 54366, University Library of Munich, Germany.
  2. Qureshi, Mahvash Saeed & Tsangarides, Charalambos G., 2012. "Hard or Soft Pegs? Choice of Exchange Rate Regime and Trade in Africa," World Development, Elsevier, vol. 40(4), pages 667-680.
  3. Cardamone, Paola, 2014. "R&D, spatial proximity and productivity at firm level: evidence from Italy," MPRA Paper 57149, University Library of Munich, Germany.
  4. Succurro, Marianna, 2014. "Intangible assets finance: a complementary or substitution effect between external and internal channels? Evidence from the Italian divide," MPRA Paper 57247, University Library of Munich, Germany.

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