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Inside the Blackbox: Economic Performance and Technology Adoption when Space and Product Relationships Matter

Author

Listed:
  • Leonardo Becchetti

    () (Università "Tor Vergata", Roma)

  • Annalisa Castelli

    () (Università "Tor Vergata", Roma)

Abstract

We highlight the relevance of studying the performance of productive units by considering space and product relationships. By applying the district/no district and independent/subcontractee status taxonomy, we find that district independent firms have higher value added and are more efficient than non district independent firms, but that ICT investment improves efficiency only for the latter. Our findings suggest that: (i) the quality of space relationships (district location) positively affects unmeasured forms of human and social capital; (ii) ICT adoption has a stronger impact on non district independent firms as the improvement of electronic links is more beneficial for productive units with poorer space relationships.

Suggested Citation

  • Leonardo Becchetti & Annalisa Castelli, 2005. "Inside the Blackbox: Economic Performance and Technology Adoption when Space and Product Relationships Matter," Rivista di Politica Economica, SIPI Spa, vol. 95(1), pages 181-220, January-F.
  • Handle: RePEc:rpo:ripoec:v:95:y:2005:i:1:p:181-220
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    Cited by:

    1. Valter Di Giacinto & Matteo Gomellini & Giacinto Micucci & Marcello Pagnini, 2014. "Mapping local productivity advantages in Italy: industrial districts, cities or both?," Journal of Economic Geography, Oxford University Press, vol. 14(2), pages 365-394.
    2. Auci, Sabrina & Castelli, Annalisa, 2011. "Pollution and economic growth: a maximum likelihood estimation of environmental Kuznets curve," MPRA Paper 53441, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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