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Vertical disintegration and spatial co-localization: the case of Kibs in the Metropolitan Region of Milan

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  • Roberto Antonietti
  • Giulio Cainelli
  • Claudio Lupi

Abstract

In this paper we explore the relation between vertical disintegration and the co-localization of knowledge intensive business service (Kibs) in the metropolitan region of Milan, using micro-geographic data and nonparametric methods. Our main results are that: (i) compared to other manufacturing and service industries, Kibs show a natural tendency to cluster; (ii) this tendency increases with the degree of vertical disintegration of Kibs.

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Bibliographic Info

Paper provided by Public policies and local development in its series Openloc Working Papers with number 1202.

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Date of creation: 2012
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Handle: RePEc:trn:utwpol:1202

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Keywords: Co-localization; Kibs; Nonparametric methods; Vertical disintegration;

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  1. Giulio Cainelli & Donato Iacobucci, 2009. "Do agglomeration and technology affect vertical integration? Evidence from Italian business groups," Working Papers 0903, c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
  2. Thomas J. Holmes, 1995. "Localization of industry and vertical disintegration," Staff Report 190, Federal Reserve Bank of Minneapolis.
  3. Goldstein, G. S. & Gronberg, T. J., 1984. "Economies of scope and economies of agglomeration," Journal of Urban Economics, Elsevier, vol. 16(1), pages 91-104, July.
  4. Roberto Antonietti & Giulio Cainelli, 2007. "Spatial Agglomeration, Technology and Outsourcing of Knowledge Intensive Business Services Empirical Insights from Italy," Working Papers 2007.79, Fondazione Eni Enrico Mattei.
  5. Paul Windrum & Andreas Reinstaller & Christopher Bull, 2009. "The outsourcing productivity paradox: total outsourcing, organisational innovation, and long run productivity growth," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 197-229, April.
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  9. Lars Bengtsson & Mandar Dabhilkar, 2009. "Manufacturing outsourcing and its effect on plant performance—lessons for KIBS outsourcing," Journal of Evolutionary Economics, Springer, vol. 19(2), pages 231-257, April.
  10. Duranton, Gilles & Overman, Henry G., 2006. "Exploring the Detailed Location Patters of UK Manufacturing Industries using Microgeographic Data," CEPR Discussion Papers 5858, C.E.P.R. Discussion Papers.
  11. Giulio Cainelli & Donato Iacobucci, 2012. "Agglomeration, Related Variety, and Vertical Integration," Economic Geography, Clark University, vol. 88(3), pages 255-277, 07.
  12. Helsley, Robert W. & Strange, William C., 2007. "Agglomeration, opportunism, and the organization of production," Journal of Urban Economics, Elsevier, vol. 62(1), pages 55-75, July.
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  14. Gilles Duranton & Henry G. Overman, 2005. "Testing for Localization Using Micro-Geographic Data," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 1077-1106.
  15. Baumgardner, James R, 1988. "The Division of Labor, Local Markets, and Worker Organization," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 509-27, June.
  16. Li, Ben & Lu, Yi, 2009. "Geographic concentration and vertical disintegration: Evidence from China," Journal of Urban Economics, Elsevier, vol. 65(3), pages 294-304, May.
  17. Arbia, G. & Espa, G. & Giuliani, D. & Mazzitelli, A., 2012. "Clusters of firms in an inhomogeneous space: The high-tech industries in Milan," Economic Modelling, Elsevier, vol. 29(1), pages 3-11.
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