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Spatial agglomeration, innovation and firm survival for Italian manufacturing firms

Author

Listed:
  • Arnab Bhattacharjee
  • Ornella Maietta
  • Fernanda Mazzotta

Abstract

The innovativeness of a firm not only improves its own survival chances but also can generate externalities on its neighbouring firms. We empirically examine the role of agglomeration economies in how innovativeness affects firm survival in southern Italy, using spatial weights to model spillovers. Spatial Durbin probit model estimates confirm that innovation is an important determinant of firm survival, not only for firms that are themselves innovative but also for those located close to other innovative firms. Adequate definitions of spatial scale and spatial weights are important. Spillover benefits are enhanced by agglomeration economies, but only at a very local scale.

Suggested Citation

  • Arnab Bhattacharjee & Ornella Maietta & Fernanda Mazzotta, 2023. "Spatial agglomeration, innovation and firm survival for Italian manufacturing firms," Spatial Economic Analysis, Taylor & Francis Journals, vol. 18(3), pages 318-345, July.
    • Handle: RePEc:taf:specan:v:18:y:2023:i:3:p:318-345
    DOI: 10.1080/17421772.2023.2176538
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    Cited by:

    1. Yunsheng Zhang & Shuting Wang & Ruomeng Zhou, 2025. "Spatial sorting and selection within urban agglomerations: a tripartite evolutionary game model approach," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    2. Ana Uluwiyah & Nachrowi Djalal Nachrowi & Chaikal Nuryakin, 2025. "Regional proliferation in Indonesia: impact on manufacturing outcomes and firm survival," Asia-Pacific Journal of Regional Science, Springer, vol. 9(2), pages 419-447, June.
    3. Pham Tien Thanh & Katsuhiro Saito, 2024. "Poverty reduction and migration in rural Vietnam: Role of local firm clusters," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 1231-1266, August.
    4. Adam Brown & Jen Nelles & Alexander Frost & Michalis Papazoglou & Tim Vorley, 2025. "Understanding the role of subsectoral structure in inter-regional sectoral productivity disparities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(2), pages 1-23, June.
    5. Shuguang Liu & Jiayi Wang & Yin Long, 2023. "Research into the Spatiotemporal Characteristics and Influencing Factors of Technological Innovation in China’s Natural Gas Industry from the Perspective of Energy Transition," Sustainability, MDPI, vol. 15(9), pages 1-34, April.
    6. Gang Li & Qifeng Yuan & Xiao Liu & Wei Zhan & Shuya Yang, 2025. "Measuring Intra-Urban Innovation Space from the Unit-Network Perspective: A Case Study of Guangzhou," Land, MDPI, vol. 14(3), pages 1-22, February.

    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies

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