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The birth and development of the Italian automotive industry (1894-2015) and the Turin car cluster

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By discussing the relation between the traditional Marshallian/Jacobian approach and Klepper’s concept of spinoffs and their role, this paper tries to explain the early genesis and later evolution of the Italian automotive industry, based on the for mation of the Torino’s car cluster from the late nineteenth century. Historical analysis and econometric models are integrated to identify key factors that enabled the creation and success of the automotive industry in Turin. Specifically, we investigate agglomeration economies, the role of spinoffs and institutional factors such as the level and importance of local education. Based on original archival research, we built a new database of all Italian automobile companies. Replication of Klepper’s (2007) and Boschma and Wenting’s (2007) models shows no particular influence of the Turin cluster and no early entry advantages. Our model, which integrates and extends previous contributions, confirms the existence of a spinoffs effect, and in particular the positive effect of inherited technical skills embedded in pilots. We find support also, for positive agglomeration effects at the regional level and inter industry externalities from aeronautics, a metropolitan cluster effect and the significance of metropolitan education.

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  • Enrietti, Aldo & Geuna, Aldo & Nava, Consuelo R. & Patrucco, Pier Paolo, 2019. "The birth and development of the Italian automotive industry (1894-2015) and the Turin car cluster," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201909, University of Turin.
    • Handle: RePEc:uto:dipeco:201909
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