Abstract
The paper assesses geographic spillovers of firms’ total factor productivity (TFP) through the lens of spatial econometrics. The aim is to use patent data to link the concepts of productivity and innovation, as well as to shed light on the role played by industrial agglomeration economies. TFP estimates are based on a panel of around sixteen thousand Italian manufacturing firms surveyed in the 2004-2010 period, allowing for labor and capital productivity coefficients to vary over sectors of activity. The TFP spillover is then estimated using a spatial autoregressive model with spatial autoregressive disturbances focused on 2010 firm-level geo-referenced data. The results show that firm TFP levels benefit from both the productivity spillovers originated by neighboring firms and the exogenous productivity shocks to the latter. To be part of an agglomeration economy results in productivity advantages. The location in a patent-intensive area acts in the sense of strengthening these effects but results, in turn, to be an advantage also for firms outside districts, thus corroborating the findings of an active role played by innovation in enhancing productivity.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.