Economics at your fingertips  

Ownership Structure, Innovation Process and Competitive Performance: the Case of Italy

Maria Rosa Battagion () and Lucia Tajoli ()
Additional contact information
Maria Rosa Battagion: CESPRI, Universita' Bocconi, Milano, Italy

No 120, KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy

Abstract: The Italian industrial sector is characterized by a number of peculiarities compared to other advanced countries. One of these is the small average size of its firms. This particular model of organization of production, based on the small dimension and often on informal relationships within and outside the firm, guarantees flexibility and a high degree of specialization, two key factors of the Italian economic performance. But this model presents some limits too, one being related to the ownership structure and governance of firms. Another characteristic of the Italian industrial sector is its weakness in high-tech industries: innovative activity is still far from the level reached in the major industrialized countries, and Italian trade deficit in the technologically-advanced sectors is persisting. In this paper, we try to assess whether the weak performance of the Italian economy in the high-tech sectors may depend upon ownership structure in Italy. Ownership structure can influence innovative activity because it implies particular forms of risk and profit sharing, and particular financial sources. The first part of the paper presents the main characteristics of Italian corporate governance and ownership structure, as well as the innovation system in Italy, comparing them with the situation in other industrialized countries. In the second part of the paper, we estimate a probit model over a sample of firms from the precision tools sector, the pharmaceutical sector, the glass and ceramics sector and the furniture sector to test how the probability of patenting an innovation is affected by the ownership of the firms, among other variables. Estimation analysis indeed shows that the innovative output is affected by the ownership structure, as this variable turns out to be significant in many specifications of the model.

Keywords: Ownership structure; Innovation; Performance (search for similar items in EconPapers)
JEL-codes: G3 L1 L6 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn, nep-fin and nep-tid
Date: 1999-11, Revised 2000-11
Note: Paper prepared for the "Corporate Governance and Investiment Project", Aarhus
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from
E G E A - via R. Sarfatti, 25 - 20136 Milano -Italy

Access Statistics for this paper

More papers in KITeS Working Papers from KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy via Sarfatti, 25 - 20136 Milano - Italy.
Bibliographic data for series maintained by Valerio Sterzi (). This e-mail address is bad, please contact .

Page updated 2019-10-14
Handle: RePEc:cri:cespri:wp120