Advanced Search
MyIDEAS: Login to save this paper or follow this series

Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy

Contents:

Author Info

  • Aiello, Francesco
  • Pupo, Valeria
  • Ricotta, Fernanda

Abstract

Sectoral and territorial specificities affect the firm’s capabilities of being productive. While there is a wide consensus on this, a quantitative measure of the these effects has been lacking. To this end, we combine a dataset of Italian firms with some meso regional and sectoral variables and apply a cross-classified model that allows for a clear distinction between firm, region-specific and sector-specific effects. After observing a marked TFP heterogeneity across firms, the paper addresses the issue of understanding how much differences in firms’ productivity depend on regional localisation and sector specificities. Results refer to 2004-2006 and are threefold. Firstly, they confirm that the main source of firm variety is mostly due to differences revealed at individual level. Secondly, we find that sector is more important than location in explaining firms’ TFP. Lastly, the results show that firm TFP increases when it belongs to more innovative sectors. Similarly, companies get benefits from belonging to sectors where there is a high proportion of firms using R&D public support and a high propensity to collaborate in innovative projects.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/48573/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 48573.

as in new window
Length:
Date of creation: 23 Jul 2013
Date of revision:
Handle: RePEc:pra:mprapa:48573

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Total Factor Productivity; Firms’ Heterogeneity; Sectoral innovation; Geography; Cross-Classified Models;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nick Bloom & John Van Reenen, 2010. "Why do management practices differ across firms and countries?," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 47491, London School of Economics and Political Science, LSE Library.
  2. L. Rachel Ngai & Roberto M. Samaniego, 2009. "Accounting for research and productivity growth across industries," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 25496, London School of Economics and Political Science, LSE Library.
  3. Francesco Aiello & Vincenzo Scoppa, 2000. "Uneven Regional Development in Italy: Explaining Differences in Productivity Levels," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(2), pages 270-298, September.
  4. Serguei Kaniovski & Michael Peneder, . "On the Structural Dimension of Competitive Strategy," WIFO Working Papers, WIFO 145, WIFO.
  5. Harris, Richard & Moffat, John & Lib, Qian Cher, 2010. "The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain," SIRE Discussion Papers, Scottish Institute for Research in Economics (SIRE) 2010-65, Scottish Institute for Research in Economics (SIRE).
  6. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
  7. Joseph Byrne & Giorgio Fazio & Davide Piacentino, 2009. "Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 43(1), pages 63-76.
  8. Francesco Daveri & Cecilia Jona-Lasinio, 2005. "Italy’s Decline: Getting the Facts Right," Working Papers 301, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  9. Aqib Aslam & Luisa Corrado, 2012. "The geography of well-being," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 12(3), pages 627-649, May.
  10. Guido Ascari & Valeria Di Cosmo, 2005. "Determinants of Total Factor Productivity in the Italian Regions," Macroeconomics, EconWPA 0511009, EconWPA.
  11. Raspe, Otto & van Oort, Frank G., 2011. "Firm heterogeneity, productivity and spatially bounded knowledge externalities," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 45(1), pages 38-47, March.
  12. Miriam A. Golden & Lucio Picci, 2005. "Proposal For A New Measure Of Corruption, Illustrated With Italian Data," Economics and Politics, Wiley Blackwell, Wiley Blackwell, vol. 17, pages 37-75, 03.
  13. Muscio, Alessandro & Quaglione, Davide & Vallanti, Giovanna, 2013. "Does government funding complement or substitute private research funding to universities?," Research Policy, Elsevier, Elsevier, vol. 42(1), pages 63-75.
  14. Castellacci, Fulvio & Zheng, Jinghai, 2010. "Technological regimes, Schumpeterian patterns of innovation and firm level productivity growth," MPRA Paper 27588, University Library of Munich, Germany.
  15. Francesco QUATRARO, 2006. "Technological Change And Productivity Growth In Italian Regions, 1982-2001," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 24, pages 135-158.
  16. Giorgio Fazio & Davide Piacentino, 2009. "A spatial multilevel analysis of Italian SMEs Productivity," Working Papers, Business School - Economics, University of Glasgow 2009_31, Business School - Economics, University of Glasgow.
  17. Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, Elsevier, vol. 50(8), pages 2037-2061, November.
  18. Giuseppe Medda & Claudio Piga & Donald S Siegel, 2005. "University R&D and Firm Productivity: Evidence from Italy," The Journal of Technology Transfer, Springer, Springer, vol. 30(2_2), pages 199-205, 01.
  19. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
  20. Giovanni Iuzzolino & Guido Pellegrini & Gianfranco Viesti, 2011. "Convergence among Italian Regions, 1861-2011," Quaderni di storia economica (Economic History Working Papers), Bank of Italy, Economic Research and International Relations Area 22, Bank of Italy, Economic Research and International Relations Area.
  21. E. Marrocu & R. Paci, 2006. "The effects of public capital on the productivity of the Italian regions," Working Paper CRENoS 200613, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  22. repec:fth:stanho:e-93-6 is not listed on IDEAS
  23. J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001. "Geography and development," Journal of Economic Geography, Oxford University Press, Oxford University Press, vol. 1(1), pages 81-105, January.
  24. van Dijk, Machiel, 2000. "Technological Regimes and Industrial Dynamics: The Evidence from Dutch Manufacturing," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 173-94, June.
  25. Francesco Serti & Chiara Tomasi, 2007. "Self Selection and Post-Entry effects of Exports. Evidence from Italian Manufacturing firms," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2007/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  26. Francesco Aiello & Valeria Pupo & Fernanda Ricotta, 2012. "Explaining Tfp At Firm Level In Italy. Does Location Matter?," Working Papers 201202, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  27. Schmalensee, Richard, 1985. "Do Markets Differ Much?," American Economic Review, American Economic Association, American Economic Association, vol. 75(3), pages 341-51, June.
  28. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  29. R. Harris & Q. C. Li & J. Moffat, 2011. "The impact of higher education institution-firm knowledge links on firm-level productivity in Britain," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 18(13), pages 1243-1246.
  30. Cora J. M. Maas & Joop J. Hox, 2004. "Robustness issues in multilevel regression analysis," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, Netherlands Society for Statistics and Operations Research, vol. 58(2), pages 127-137.
  31. Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2008. "Innovation and Productivity in SMEs: Empirical Evidence for Italy," NBER Working Papers 14594, National Bureau of Economic Research, Inc.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48573. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.