Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata

Francesco Aiello () and Paola Cardamone ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper assesses the impact of R&D efforts on production in the North and Centre-South of Italy by using a panel of 1203 manufacturing firms over the period 1998-2003. The estimations are based on a nonlinear translog production function augmented by a measure of R&D spillovers. This measure combines the geographical distance between firms, the technological similarity within each pair of firms and the technical efficiency of each firm. The estimation method takes into account the endogeneity of regressors and the potential sample selection issue regarding firms’ decision to invest in R&D. Results show that the external stock of technology exerts a higher impact in the Centre-South of Italy. Finally, it emerges that R&D capital and R&D spillovers are substitutes for Northern firms and complements for Centre-Southern firms.

Keywords: R&D spillovers; Italian economic divide; translog production function; technical efficiency (search for similar items in EconPapers)
JEL-codes: C23 L29 O33 (search for similar items in EconPapers)
Date: 2010-05-10
New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo, nep-ino, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (4)

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https://mpra.ub.uni-muenchen.de/22572/1/MPRA_paper_22572.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/35230/2/MPRA_paper_35230.pdf revised version (application/pdf)

Related works:
Journal Article: Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata (2012)
Working Paper: REGIONAL ECONOMIC DIVIDE AND THE ROLE OF TECHNOLOGICAL SPILLOVERS IN ITALY. EVIDENCE FROM MICRODATA (2010)
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