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Labour productivity, ICT and regions: The revival of Italian “dualism”?

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Author Info
Simona Iammarino () (SPRU, University of Sussex)
Cecilia Jona-Lasini (Italian National Institute of Statistics (ISTAT), Rome, Italy)
Susanna Mantegazza (Italian National Institute of Statistics (ISTAT), Rome, Italy)

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Abstract

Among the reasons underlying the slow economic convergence of some regions towards the national and the European Union average, the strong gap in technological endowment and innovation capacity has been indicated as one of the most important factors. The requirements of the current ‘knowledge-based economy’ and the contribution of Information and Communication Technology (ICT) to socio-economic change are very likely to have a significant impact upon regional differentials in the European Union. So far, however, it is rather unclear whether the new paradigm will spur greater socio-economic cohesion or, on the contrary, stronger territorial polarisation. This paper looks at the distribution of ICT-producing small and medium enterprises in Italy, comparing structural variables – in particular spatial and sectoral dimensions - with labour productivity levels. Ultimately, the objective is to shed some light on the role that ICT-producing firms might play with respect to regional gaps in the Italian economy, traditionally characterised by geographical polarisation and imbalances which are among the most striking in the “Europe of regions”. The first result of our analysis (carried out by using experimental micro data) is that a linkage seems to emerge between high labour productivity and the IT industry. This is in line with the insights of the economic theory of technical change, suggesting that IT-producing sectors are those where gains in productivity are by far the most evident. As expected, the geographical location of firms accounts for a good deal when looking at labour productivity levels across sectors, casting some concern on the development perspectives of the Italian regional divide.

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Paper provided by University of Sussex, SPRU - Science and Technology Policy Research in its series SPRU Electronic Working Paper Series with number 127.

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Length: 27 pages
Date of creation: 10 Nov 2004
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Handle: RePEc:sru:ssewps:127

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Related research
Keywords: regional development Italy Information and Communication Technology (ICT) small and medium enterprises productivity

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Find related papers by JEL classification:
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes
L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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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.:
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  3. Rinaldo Evangelista & Simona Iammarino & Valeria Mastrostefano & Alberto Silvani, 2002. "Looking for Regional Systems of Innovation: Evidence from the Italian Innovation Survey," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 173-186, April. [Downloadable!] (restricted)
  4. Jan Fagerberg, 2000. "Technological Progress, Structural Change and Productivity Growth: A Comparative Study," Working Papers 5, Centre for Technology, Innovation and Culture, University of Oslo.
    Other versions:
  5. Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier. [Downloadable!] (restricted)
  6. Cristiano Antonelli, 2000. "Collective Knowledge Communication and Innovation: The Evidence of Technological Districts," Regional Studies, Taylor and Francis Journals, vol. 34(6), pages 535-547, August. [Downloadable!] (restricted)
  7. Baptista, Rui, 2000. "Do innovations diffuse faster within geographical clusters?," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 515-535, April. [Downloadable!] (restricted)
  8. Antonio Bassanetti & Massimiliano Iommi & Cecilia Jona-Lasinio & Francesco Zollino, 2004. "La crescita dell'economia italiana negli anni novanta tra ritardo tecnologico e rallentamento della produttività ," Temi di discussione (Economic working papers) 539, Bank of Italy, Economic Research Department. [Downloadable!]
  9. David, P.A., 2000. "Understanding Digital Technology's Evolution and the Path of Measured Productivity Growth: Present and Future in the Mirror of the Past," Papers 99-011, United Nations World Employment Programme-.
    Other versions:
  10. Stefano Breschi, 2000. "The Geography of Innovation: A Cross-sector Analysis," Regional Studies, Taylor and Francis Journals, vol. 34(3), pages 213-229, May. [Downloadable!] (restricted)
  11. Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September. [Downloadable!] (restricted)
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