IDEAS home Printed from https://ideas.repec.org/p/mst/wpaper/202102.html
   My bibliography  Save this paper

The impact of space procurement on suppliers: Evidence from Italy

Author

Listed:

Abstract

This paper investigates the impact of space procurement on supplier firms. We empirically study how public procurement affects several dimensions of firms' performance in the Italian space industry. Our research strategy implies hypothesis-validating interviews, a survey, and an econometric analysis. We found space procurement to generate two outcomes in firms: "intermediate outcomes" - i.e., learning, innovation, and market penetration - and "final outcomes" - i.e., profit and sales, business development, and employment – with the former inducing the latter. Our results offer insights for understanding the role of public procurement from the suppliers’ perspective

Suggested Citation

  • Jessica Catalano & Francesco Giffoni & Paolo Castelnovo, 2021. "The impact of space procurement on suppliers: Evidence from Italy," Working Papers 202102, CSIL Centre for Industrial Studies.
    • Handle: RePEc:mst:wpaper:202102
    as

    Download full text from publisher

    File URL: https://www.csilmilano.com/docs/WP2021_02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    2. Ghisetti, Claudia, 2017. "Demand-pull and environmental innovations: Estimating the effects of innovative public procurement," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 178-187.
    3. Marialuisa Divella & Alessandro Sterlacchini, 2020. "Public procurement for innovation: firm-level evidence from Italy and Norway," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(6), pages 1505-1520.
    4. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    5. Massimo Florio & Francesco Giffoni & Anna Giunta & Emanuela Sirtori, 2018. "Big science, learning, and innovation: evidence from CERN procurement," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 915-936.
    6. Paolo Castelnovo & Martina Dal Molin, 2021. "The learning mechanisms through public procurement for innovation: The case of government‐funded basic research organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(3), pages 411-446, September.
    7. Edquist , Charles, 2015. "Innovation-related Public Procurement as a Demand-oriented Innovation Policy Instrument," Papers in Innovation Studies 2015/28, Lund University, CIRCLE - Centre for Innovation Research.
    8. Autio, Erkko & Hameri, Ari-Pekka & Vuola, Olli, 2004. "A framework of industrial knowledge spillovers in big-science centers," Research Policy, Elsevier, vol. 33(1), pages 107-126, January.
    9. Francesco Crespi & Dario Guarascio, 2019. "The demand-pull effect of public procurement on innovation and industrial renewal," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 793-815.
    10. Castelnovo, Paolo & Florio, Massimo & Forte, Stefano & Rossi, Lucio & Sirtori, Emanuela, 2018. "The economic impact of technological procurement for large-scale research infrastructures: Evidence from the Large Hadron Collider at CERN," Research Policy, Elsevier, vol. 47(9), pages 1853-1867.
    11. Robinson, Douglas K.R. & Mazzucato, Mariana, 2019. "The evolution of mission-oriented policies: Exploring changing market creating policies in the US and European space sector," Research Policy, Elsevier, vol. 48(4), pages 936-948.
    12. Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    13. Guerzoni, Marco & Raiteri, Emilio, 2015. "Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix," Research Policy, Elsevier, vol. 44(3), pages 726-747.
    14. Aschhoff, Birgit & Sofka, Wolfgang, 2009. "Innovation on demand--Can public procurement drive market success of innovations?," Research Policy, Elsevier, vol. 38(8), pages 1235-1247, October.
    15. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2012. "Public Procurement for Innovation as mission-oriented innovation policy," Research Policy, Elsevier, vol. 41(10), pages 1757-1769.
    16. David J. Teece & Richard Rumelt & Giovanni Dosi & Sidney Winter, 2000. "Understanding Corporate Coherence: Theory and Evidence," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 9, pages 264-293, Edward Elgar Publishing.
    17. Obwegeser, Nikolaus & Müller, Sune Dueholm, 2018. "Innovation and public procurement: Terminology, concepts, and applications," Technovation, Elsevier, vol. 74, pages 1-17.
    18. Charles Edquist, 2011. "Design of innovation policy through diagnostic analysis: identification of systemic problems (or failures)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1725-1753, December.
    19. Nordberg, Markus & Campbell, Alexandra & Verbeke, Alain, 2003. "Using customer relationships to acquire technological innovation: A value-chain analysis of supplier contracts with scientific research institutions," Journal of Business Research, Elsevier, vol. 56(9), pages 711-719, September.
    20. Edquist, Charles, 2011. "Innovation Policy Design: Identification of Systemic Problems," Papers in Innovation Studies 2011/6, Lund University, CIRCLE - Centre for Innovation Research.
    21. Elvira Uyarra & Kieron Flanagan, 2010. "From Regional Systems of Innovation to Regions as Innovation Policy Spaces," Environment and Planning C, , vol. 28(4), pages 681-695, August.
    22. Raiteri, Emilio, 2018. "A time to nourish? Evaluating the impact of public procurement on technological generality through patent data," Research Policy, Elsevier, vol. 47(5), pages 936-952.
    23. Filippetti, Andrea & Archibugi, Daniele, 2011. "Innovation in times of crisis: National Systems of Innovation, structure, and demand," Research Policy, Elsevier, vol. 40(2), pages 179-192, March.
    24. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    25. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    26. Lee, Junho & Kim, Ikjun & Kim, Hyomin & Kang, Juyoung, 2021. "SWOT-AHP analysis of the Korean satellite and space industry: Strategy recommendations for development," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    27. Dirk Tempelaar & Bart Rienties & Quan Nguyen, 2020. "Subjective data, objective data and the role of bias in predictive modelling: Lessons from a dispositional learning analytics application," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-29, June.
    28. Landoni, Matteo & ogilvie, dt, 2019. "Convergence of innovation policies in the European aerospace industry (1960–2000)," Technological Forecasting and Social Change, Elsevier, vol. 147(C), pages 174-184.
    29. Nicoletti, Giuseppe & Pryor, Frederic L., 2006. "Subjective and objective measures of governmental regulations in OECD nations," Journal of Economic Behavior & Organization, Elsevier, vol. 59(3), pages 433-449, March.
    30. Kieron Flanagan & Elvira Uyarra, 2016. "Four dangers in innovation policy studies -- and how to avoid them," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 177-188, February.
    31. Rainer Kattel & Mariana Mazzucato, 2018. "Mission-oriented innovation policy and dynamic capabilities in the public sector," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 787-801.
    32. D’Este, Pablo & Iammarino, Simona & Savona, Maria & von Tunzelmann, Nick, 2012. "What hampers innovation? Revealed barriers versus deterring barriers," Research Policy, Elsevier, vol. 41(2), pages 482-488.
    33. Marcelo Cano-Kollmann & Robert D. HamiltonIII & Ram Mudambi, 2017. "Public support for innovation and the openness of firms’ innovation activities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(3), pages 421-442.
    34. Bozeman, Barry, 2000. "Technology transfer and public policy: a review of research and theory," Research Policy, Elsevier, vol. 29(4-5), pages 627-655, April.
    35. Simona Iammarino & Francesca Sanna-Randaccio & Maria Savona, 2009. "The perception of obstacles to innovation. Foreign multinationals and domestic firms in Italy," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 75-104.
    36. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    37. Mazzucato, Mariana & Robinson, Douglas K.R., 2018. "Co-creating and directing Innovation Ecosystems? NASA's changing approach to public-private partnerships in low-earth orbit," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 166-177.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Castelnovo, Paolo & Clò, Stefano & Florio, Massimo, 2023. "A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry," Technovation, Elsevier, vol. 121(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Castelnovo, Paolo & Clò, Stefano & Florio, Massimo, 2023. "A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry," Technovation, Elsevier, vol. 121(C).
    2. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    3. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    4. Serenella Caravella & Francesco Crespi, 2021. "The role of public procurement as innovation lever: evidence from Italian manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(7), pages 663-684, October.
    5. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    6. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    7. Paolo Castelnuovo & Stefano Clo & Massimo Florio, 2021. "Space policy drives innovation through technological procurement: evidence from Italy," Working Papers - Economics wp2021_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    8. Andrea Bastianin & Paolo Castelnovo & Massimo Florio & Anna Giunta, 2022. "Big science and innovation: gestation lag from procurement to patents for CERN suppliers," The Journal of Technology Transfer, Springer, vol. 47(2), pages 531-555, April.
    9. Massimo Florio & Francesco Giffoni & Anna Giunta & Emanuela Sirtori, 2018. "Big science, learning, and innovation: evidence from CERN procurement," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 915-936.
    10. Paolo Castelnovo & Martina Dal Molin, 2021. "The learning mechanisms through public procurement for innovation: The case of government‐funded basic research organizations," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(3), pages 411-446, September.
    11. Czarnitzki, Dirk & Hünermund, Paul & Moshgbar, Nima, 2020. "Public Procurement of Innovation: Evidence from a German Legislative Reform," International Journal of Industrial Organization, Elsevier, vol. 71(C).
    12. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    13. Massimo FLORIO & Francesco GIFFONI, 2019. "L’impatto sociale della produzione di scienza su larga scala: come governarlo?," Departmental Working Papers 2019-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    14. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2020. "Functional procurement for innovation, welfare and the environment," Papers in Innovation Studies 2020/1, Lund University, CIRCLE - Centre for Innovation Research, revised 19 Jul 2020.
    15. Paolo CASTELNOVO & Massimo FLORIO, 2019. "Mission-oriented Public Organizations for Knowledge Creation," Departmental Working Papers 2019-09, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    16. Kalyuzhnova, Yelena & Azhgaliyeva, Dina & Belitski, Maksim, 2022. "Public Policy Instruments for Procurement: An Empirical Analysis," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    17. Castelnovo, Paolo & Florio, Massimo & Forte, Stefano & Rossi, Lucio & Sirtori, Emanuela, 2018. "The economic impact of technological procurement for large-scale research infrastructures: Evidence from the Large Hadron Collider at CERN," Research Policy, Elsevier, vol. 47(9), pages 1853-1867.
    18. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    19. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    20. Zabala-Iturriagagoitia, Jon Mikel & Aparicio, Juan & Ortiz, Lidia & Carayannis, Elias G. & Grigoroudis, Evangelos, 2021. "The productivity of national innovation systems in Europe: Catching up or falling behind?," Technovation, Elsevier, vol. 102(C).

    More about this item

    Keywords

    Public procurement; innovation; space economy; space industry; buyer-supplier relationships;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mst:wpaper:202102. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marinella Manghina (email available below). General contact details of provider: https://edirc.repec.org/data/csilmit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.