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Knowledge intensive business services and urban areas: an analysis of localization and productivity on Italian data

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  • valter di Giacinto

    (Bank of Italy)

  • Giacinto Micucci

    (Bank of Italy)

  • Alessandro Tosoni

    (Bank of Italy)

Abstract

We analyse the geographic localization and the productivity of knowledge-intensive business services (KIBS) in Italy, using both census data and balance-sheet data at the firm level. We find that KIBS are generally agglomerated in urban areas where they attain significantly higher labour productivity levels. Urban productivity advantages are found to be strongly associated with the local availability of human capital and to standard proxies of Marshall-Arrow-Romer and Jacobs agglomeration economies. Forward demand linkages and some factors impacting on the thickness of the local labour market also appear to be relevant. On the whole, the set of explanatory factors considered could explain the entire urban productivity premium estimated for Italian KIBS firms.

Suggested Citation

  • valter di Giacinto & Giacinto Micucci & Alessandro Tosoni, 2018. "Knowledge intensive business services and urban areas: an analysis of localization and productivity on Italian data," Questioni di Economia e Finanza (Occasional Papers) 443, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_443_18
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    Cited by:

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    2. Rosario Maria Ballatore & Vincenzo Mariani, 2019. "Human Capital Differentials Across Urban and Rural Areas in Italy. The Role of Migrations," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 5(2), pages 307-324, July.

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    More about this item

    Keywords

    knowledge-intensive business services (KIBS); urban areas; agglomeration economies.;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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