Firm heterogeneity in TFP, sectoral innovation and geography. Evidence from Italy
Sectoral and territorial specificities affect the firm’s capabilities of being productive. While there is a wide consensus on this, a quantitative measure of the these effects has been lacking. To this end, we combine a dataset of Italian firms with some meso regional and sectoral variables and apply a cross-classified model that allows for a clear distinction between firm, region-specific and sector-specific effects. After observing a marked TFP heterogeneity across firms, the paper addresses the issue of understanding how much differences in firms’ productivity depend on regional localisation and sector specificities. Results refer to 2004-2006 and are threefold. Firstly, they confirm that the main source of firm variety is mostly due to differences revealed at individual level. Secondly, we find that sector is more important than location in explaining firms’ TFP. Lastly, the results show that firm TFP increases when it belongs to more innovative sectors. Similarly, companies get benefits from belonging to sectors where there is a high proportion of firms using R&D public support and a high propensity to collaborate in innovative projects.
|Date of creation:||23 Jul 2013|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cora J. M. Maas & Joop J. Hox, 2004. "Robustness issues in multilevel regression analysis," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 58(2), pages 127-137.
- James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
- Schmalensee, Richard, 1985.
"Do Markets Differ Much?,"
American Economic Review,
American Economic Association, vol. 75(3), pages 341-351, June.
- Harris, Richard & Moffat, John & Lib, Qian Cher, 2010.
"The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain,"
SIRE Discussion Papers
2010-65, Scottish Institute for Research in Economics (SIRE).
- R. Harris & Q. C. Li & J. Moffat, 2011. "The impact of higher education institution-firm knowledge links on firm-level productivity in Britain," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1243-1246.
- Richard Harris & Qian Cher Li & firstname.lastname@example.org John, 2010. "The Impact of Higher Education Institution-Firm Knowledge Links on Firm-level Productivity in Britain," Working Papers 1017, University of Strathclyde Business School, Department of Economics.
- Nick Bloom & John Van Reenen, 2010.
"Why do management practices differ across firms and countries?,"
LSE Research Online Documents on Economics
47491, London School of Economics and Political Science, LSE Library.
- Nicholas Bloom & John Van Reenen, 2010. "Why Do Management Practices Differ across Firms and Countries?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 203-224, Winter.
- Nick Bloom & John Van Reenen, 2010. "Why do Management Practices Differ Across Firms and Countries?," CEP Occasional Papers 26, Centre for Economic Performance, LSE.
- Francesco Daveri & Cecilia Jona-Lasinio, 2005.
"Italy’s Decline: Getting the Facts Right,"
301, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- L. Rachel Ngai & Roberto M. Samaniego, 2009.
"Accounting for Research and Productivity Growth Across Industries,"
CEP Discussion Papers
dp0914, Centre for Economic Performance, LSE.
- Rachel Ngai & Roberto Samaniego, 2011. "Accounting for Research and Productivity Growth Across Industries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 475-495, July.
- L. Rachel Ngai & Roberto M. Samaniego, 2009. "Accounting for research and productivity growth across industries," LSE Research Online Documents on Economics 25496, London School of Economics and Political Science, LSE Library.
- J. Vernon Henderson, Zmarak Shalizi, and Anthony J. Venables, 2001.
"Geography and development,"
Journal of Economic Geography,
Oxford University Press, vol. 1(1), pages 81-105, January.
- repec:hoo:wpaper:e-93-6 is not listed on IDEAS
- Joseph Byrne & Giorgio Fazio & Davide Piacentino, 2009. "Total Factor Productivity Convergence among Italian Regions: Some Evidence from Panel Unit Root Tests," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 63-76.
- Fulvio Castellacci & Jinghai Zheng, 2010.
"Technological regimes, Schumpeterian patterns of innovation and firm-level productivity growth,"
Industrial and Corporate Change,
Oxford University Press, vol. 19(6), pages 1829-1865, December.
- Castellacci, Fulvio & Zheng, Jinghai, 2010. "Technological regimes, Schumpeterian patterns of innovation and firm level productivity growth," MPRA Paper 27588, University Library of Munich, Germany.
- Francesco Serti & Chiara Tomasi, 2008. "Self-Selection and Post-Entry Effects of Exports: Evidence from Italian Manufacturing Firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 144(4), pages 660-694, December.
- Francesco Aiello & Alfonsina Iona & Leone Leonida, 2012. "Regional infrastructure and firm investment: theory and empirical evidence for Italy," Empirical Economics, Springer, vol. 42(3), pages 835-862, June.
- Aiello, Francesco & Pupo, Valeria & Ricotta, Fernand, 2011.
"Explaining TFP at firm level in Italy. Does location matter?,"
35656, University Library of Munich, Germany.
- Francesco Aiello & Valeria Pupo & Fernanda Ricotta, 2012. "Explaining Tfp At Firm Level In Italy. Does Location Matter?," Working Papers 201202, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
- Serguei Kaniovski & Michael Peneder, "undated".
"On the Structural Dimension of Competitive Strategy,"
WIFO Working Papers
- Serguei Kaniovski & Michael Peneder, 2002. "On the structural dimension of competitive strategy," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 557-579, June.
- Guido Ascari & Valeria di Cosmo, 2005.
"Determinants of total factor productivity in the italian Regions,"
FrancoAngeli Editore, vol. 2005(2), pages -.
- Guido Ascari & Valeria Di Cosmo, 2005. "Determinants of Total Factor Productivity in the Italian Regions," Macroeconomics 0511009, EconWPA.
- Mikael Lindahl & Alan B. Krueger, 2001.
"Education for Growth: Why and for Whom?,"
Journal of Economic Literature,
American Economic Association, vol. 39(4), pages 1101-1136, December.
- Francesco QUATRARO, 2006. "Technological Change And Productivity Growth In Italian Regions, 1982-2001," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 24, pages 135-158.
- Parisi, Maria Laura & Schiantarelli, Fabio & Sembenelli, Alessandro, 2006. "Productivity, innovation and R&D: Micro evidence for Italy," European Economic Review, Elsevier, vol. 50(8), pages 2037-2061, November.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2008.
"Innovation and Productivity in SMEs: Empirical Evidence for Italy,"
NBER Working Papers
14594, National Bureau of Economic Research, Inc.
- Bronwyn H. Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs. Empirical evidence for Italy," Temi di discussione (Economic working papers) 718, Bank of Italy, Economic Research and International Relations Area.
- Giovanni Iuzzolino & Guido Pellegrini & Gianfranco Viesti, 2011. "Convergence among Italian Regions, 1861-2011," Quaderni di storia economica (Economic History Working Papers) 22, Bank of Italy, Economic Research and International Relations Area.
- Raspe, Otto & van Oort, Frank G., 2011. "Firm heterogeneity, productivity and spatially bounded knowledge externalities," Socio-Economic Planning Sciences, Elsevier, vol. 45(1), pages 38-47, March.
- Giorgio Fazio & Davide Piacentino, 2010.
"A Spatial Multilevel Analysis of Italian SMEs' Productivity,"
Spatial Economic Analysis,
Taylor & Francis Journals, vol. 5(3), pages 299-316.
- Giorgio Fazio & Davide Piacentino, 2009. "A spatial multilevel analysis of Italian SMEs Productivity," Working Papers 2009_31, Business School - Economics, University of Glasgow.
- Giuseppe Medda & Claudio Piga & Donald S Siegel, 2005. "University R&D and Firm Productivity: Evidence from Italy," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 199-205, 01.
- Francesco Aiello & Vincenzo Scoppa, 2000. "Uneven Regional Development in Italy: Explaining Differences in Productivity Levels," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 59(2), pages 270-298, September.
- Aqib Aslam & Luisa Corrado, 2012. "The geography of well-being," Journal of Economic Geography, Oxford University Press, vol. 12(3), pages 627-649, May.
- Emanuela Marrocu & Raffaele Paci, 2010.
"The effects of public capital on the productivity of the Italian regions,"
Taylor & Francis Journals, vol. 42(8), pages 989-1002.
- E. Marrocu & R. Paci, 2006. "The effects of public capital on the productivity of the Italian regions," Working Paper CRENoS 200613, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Bronwyn Hall & Francesca Lotti & Jacques Mairesse, 2009. "Innovation and productivity in SMEs: empirical evidence for Italy," Small Business Economics, Springer, vol. 33(1), pages 13-33, June.
- Muscio, Alessandro & Quaglione, Davide & Vallanti, Giovanna, 2013. "Does government funding complement or substitute private research funding to universities?," Research Policy, Elsevier, vol. 42(1), pages 63-75.
- Andrea Brandolini & Piero Cipollone, 2001. "Multifactor Productivity and Labour Quality in Italy, 1981-2000," Temi di discussione (Economic working papers) 422, Bank of Italy, Economic Research and International Relations Area.
- Miriam A. Golden & Lucio Picci, 2005. "Proposal For A New Measure Of Corruption, Illustrated With Italian Data," Economics and Politics, Wiley Blackwell, vol. 17, pages 37-75, 03.
- van Dijk, Machiel, 2000. "Technological Regimes and Industrial Dynamics: The Evidence from Dutch Manufacturing," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 173-194, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:48573. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.