Spatial Agglomeration, Innovation and Firm Survival for Italian Manufacturing Firms

Arnab Bhattacharjee, Ornella Maietta and Fernanda Mazzotta

No 546, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: Innovativeness of a firm improves not only its own survival chances but can also generate externalities on its neighboring 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 a determinant of firm survival not only for firms that are themselves innovative but also ones located close to other innovative firms. Definition of spatial scale and weight plays an important role. Spillover benefits are enhanced by agglomeration economies, but only at a very local scale.

Keywords: Firm survival; Spatial models; Innovation; Spillovers; Southern Italian SMEs (search for similar items in EconPapers)
JEL-codes: C21 C41 D22 L20 O3 (search for similar items in EconPapers)
Date: 2023-02
New Economics Papers: this item is included in nep-bec, nep-com, nep-cse, nep-ent, nep-eur, nep-geo, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (1)

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Journal Article: Spatial agglomeration, innovation and firm survival for Italian manufacturing firms (2023)
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