Local spillovers, production technology and the choice to make and/or buy. Empirical evidence from Emilia Romagna
AbstractBy exploiting a new rich fi rm-level dataset, this paper investigates the decision to subcontract production activities (outsourcing) with respect to vertically integrate them. In particular, we aim at identifying the main factors underlying the decision to either fully or partially decentralise production activities by mechanical firms located in Emilia Romagna (Italy). In so doing, we fir st account for firm characteristics, such as size, age and the skill composition of the labour force, then we focus on labour costs per employee, product diversity and the presence of the fi rm on international markets. Finally, and differently from previous research, we include in the analysis both the qualitative composition of the production process, as given by the stages of production potentially developed by the fi rm, and the industrial composition of the local market. On this last purpose, we estimate the relationship between the propensity and the intensity of concurrent and total sourcing and the main sources of agglomeration economies identified in the literature: specialisation economies, variety and urbanisation economies. Our estimates show a particularly strong and positive relation between the intensity of 'pure' outsourcing and our measure of variety, workforce skill intensity and the internal composition of production, while a negative relation emerges with respect to firm size, age and labour cost. Results concerning concurrent sourcing, instead, appear weaker, but, differently from the case of full outsourcing, we nd a positive relationship with rm size and product diversity.
Download InfoIf 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.
Bibliographic InfoPaper provided by Public policies and local development in its series Openloc Working Papers with number 0902.
Date of creation: 2009
Date of revision:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2011.
"Environmental Innovations, Local Networks and Internationalization,"
2011.20, Fondazione Eni Enrico Mattei.
- Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2012. "Environmental Innovations, Local Networks and Internationalization," Industry and Innovation, Taylor & Francis Journals, vol. 19(8), pages 697-734, November.
- Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2011. "Environmental innovations, local networks and internationalization," Openloc Working Papers 1108, Public policies and local development.
- Giulio Cainelli & Massimiliano Mazzanti & Sandro Montresor, 2011. "Environmental innovations, local networks and internationalization," Working Papers 201101, University of Ferrara, Department of Economics.
- Roberto Antonietti & Giulio Cainelli, 2011. "Geographic concentration and vertical disintegration in KIBS: evidence from the metropolitan area of Milan," Openloc Working Papers 1105, Public policies and local development.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Francesco Rentocchini).
If references are entirely missing, you can add them using this form.