Abstract
Using a translog production function we estimate the impact of R&D spillovers on the output performance of Italian manufacturing firms over the period 1998-2003. Technological flows are measured through an asymmetric similarity index that takes also into account the geographical proximity of firms. Results show that R&D spillovers positively affect firms production and that geography matters in determining the role of the external technology. Moreover, we find that the effect of R&D spillovers is high in the Centre-South of Italy and that the stock of R&D spillovers is Morishima complement to the stock of R&D own-capital.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Adams JD, Jaffe AB (1996) Bounding the effect of R&D: an investigation using matched establishment-firm data. RAND J Econ 27: 700–721
Aiello F, Cardamone P (2005) R&D spillovers and productivity growth. Further evidence from Italian manufacturing microdata. Appl Econ Lett 12: 625–631
Aiello F, Pupo V (2004) Il tasso di rendimento degli investimenti in Ricerca e Sviluppo delle imprese innovatrici italiane. Rivista di Politica Economica XCIV, V–VI: 81–117
Aiello F, Cardamone P, Pupo V (2005) Produttività e Capitale Tecnologico nel Settore Manifatturiero Italiano. L’industria Rivista Di Economia e Politica Industriale N. 1: 119–145
Antonioli B, Fazioli R, Filippini M (2000) Il servizio di igiene urbana italiano tra concorrenza e monopolio. In: Cambini C, e Bulckaen F (eds) I servizi di pubblica utilità. Concorrenza e regolazione nei nuovi mercati. Franco Angeli, Milano
Arrow KJ (1962) The economic implications of learning-by-doing. Rev Econ Stat 29(1): 155–173
Audretsch DB, Feldman MP (2004) Knowledge spillovers and the geography of innovation. In: Henderson V, Thisse JF(eds) Handbook of regional and urban economics, 1st edn 1, vol 4(4). Elsevier, Amsterdam
Becker B, Pain N (2003) What determines industrial R&D expenditure in the UK? National Institute of Economic and Social Research Discussion paper, n 211
Berndt ER, Christensen LR (1973) The translog function and the substitution of equipment, structures, and labor in US manufacturing 1929–1968. J Econom 1: 81–114
Bhattacharya M, Bloch H (2004) Determinants of innovation. Small Bus Econ 22: 155–162
Breschi S, (2001) Knowledge spillovers and local innovation system: a critical survey. Ind Corp Change 10: 975–1005
Capitalia (2002) VIIIa Indagine sulle Imprese manifatturiere. Ottavo Rapporto sulle Industrie Italiane e sulla Politica Industriale. Ministero dell’Industria and Capitalia, Rome
Capitalia (2005) IXa Indagine sulle Imprese manifatturiere. Nono Rapporto sulle Industrie Italiane e sulla Politica Industriale. Ministero dell’Industria and Capitalia, Rome
Celikkol P, Stefanou SE (1999) Measuting the impact of price induced innovation on technological progress: application to the US food processing and distribution sector. J Product Anal 12: 135–151
Christensen LR, Jorgenson DW, Lau LJ (1973) Trascendental logarithmic production frontiers. Rev Econ Stat 55: 28–45
Ciccone A (2004) Human capital as a factor of growth and employment at the regional level: the case of Italy. Universitat Pompeu Fabra, Mimeo
Cincera M (2005) Firms’ productivity growth and R&D Spillovers: an analysis of alternative technological proximity measures. CEPR Discussion paper, n 4984
Cohen WM, Levinthal DA (1989) Innovation and learning: the two faces of R&D. Econ J 99: 569–596
Cohen WM, Levinthal DA (1990) Absorptive capacity: a new perspective on learning and innovation. Adm Sci Q 5: 128–152
Feser EJ (2004) A flexible test for agglomeration economies in two US manufacturing industries. CES Working Paper, n 14. Center for Economic Studies, US Census Bureau
Goel D (2002) Impact of infrastructure on productivity: case of Indian registered manufacturing. CDP Working Paper, n 106. Centre for Development Economics, Delhi School of Economics
Griliches Z (1979) Issues in assessing the contribution of R&D to productivity growth. Bell J Econ 10: 92–116
Griliches Z (1990) Patent statistics as economic indicators: a survey. J Econ Lit 28: 1661–1707
Griliches Z (1991) The search for R&D spillovers. Scand J Econ 94: 29–47
Guiso L, Schivardi F (2007) Spillovers in industrial districts. Econ J 117: 68–93
Gustavsson P, Poldhal A (2003) Determinants of firms R&D: evidence from Swedish firm level data. FIEF Working Paper, n 190. Stockholm School of Economics and Trade Union Institute for Economic Research
Hanhoff D (2000) R&D spillovers, technological proximity and productivity growth. Evidence from German panel data. Schmalenbach Bus Rev 52: 238–260
Inkmann J, Pohlmeier W (1995) R&D spillovers, technological distance, and innovative success. University of Kostanz, Mimeo
Jacobs J (1969) The economy of Cities. Random House, New York
Jaffe AB (1986) Technology opportunity and spillovers of R&D: evidence from firms patents, profits, and market value. Am Econ Rev 76: 984–1001
Jaffe AB (1988) Demand and supply influences in R&D intensity and productivity growth. Rev Econ Stat 70: 431–437
Jaffe AB, Trajtenberg M, Henderson R (1993) Geographic localization of knowledge spillovers as evidenced by patent citations. Q J Econ 108(2): 577–598
Kaiser U (2002) Measuring knowledge spillovers in manufacturing and services: an empirical assessment of alternative approaches. Res Policy 31: 125–144
Koo J (2005) Technology spillovers, agglomeration, and regional economic development. J Plann Lit 20: 99–115
Lall S, Shalizi Z, Deichmann U (2001) Agglomeration economies and productivity in Indian industry. Policy Research Working paper, n. 2663. The World Bank Development Research Group
Leo H (2003) Determinants of innovative activities at the firm level. Paper presented to the International Workshop “Empirical Studies on Innovation in Europe. 1–2 December 2003, Faculty of Economics, University of Urbino, Italy
Los B, Verspagen B (2000) R&D spillovers and productivity: evidence from US manufacturing microdata. Empir Econ Rev 25: 127–148
Lu WC, Chen JR, Wang CL (2005) R&D, spatial spillovers and productivity growth: evidence from dynamic panel. Mimeo, National Centre University, Taiwan
Lucas RE (1988) On the mechanics of economic development. J Monet Econ 22(1):3–42
Marshall A (1920) Principles of economics. MacMillan Press Ltd, London
May JD, Denny M (1979) Factor augmenting technical progress and productivity in US manufacturing. Int Econ Rev 20: 759–774
Medda G, Piga C (2004) R&S e Spillovers industriali: Un’analisi sulle imprese italiane. Crenos Working Paper, n. 2004/2006
Morishima M (1967) A few suggestions on the theory of elasticity. Keizai Hyoron (16):144–150
Orlando M (2000) On the importance of geographic and technological proximity for R&D spillovers: an empirical investigation. RWP 00–02, Federal Reserve Bank of Kansas City
Raut LK (1995) R&D spillovers and productivity growth: evidence from Indian private firms. J Dev Econ 48: 1–23
Romer PM (1986) Increasing returns and long-run growth. J Polit Econ 94: 1002–1037
Verspagen B (1995) R&D and productivity: a broad cross-section cross-Country look. J Product Anal 6: 117–135
Vinding AL (2006) Absorptive capacity and innovative performance: a human capital approach. Econ Innov New Technol 15(4/5): 507–517
Wakelin K (2001) Productivity growth and R&D expenditure in UK manufacturing firms. Res Policy 30: 1079–1090
Wang Y (2007) Trade, human capital, and technology spillovers: an industry-level analysis. Rev Int Econ 15(2): 269–283
Wieser R (2005) Research and development productivity and spillovers: empirical evidence at the firm level. J Econ Surv 19: 587–621
Wooldridge JM (2002) Econometric analysis of cross section and panel data. MIT, Cambridge
Author information
Authors and Affiliations
Corresponding author
Additional information
The authors thank Giovanni Anania, Olof Ejermo, Vincenzo Scoppa, Alessandro Sterlacchini and Marco Vivarelli for useful comments on an earlier draft. We are also grateful to the participants at the Workshop on “Spatial Econometrics and Statistics” in Rome (University “Guido Carli, May 2006) and at the 2006 ADRES Conference, “Networks of Innovation and Spatial Analysis of Knowledge Diffusion” in St Etienne for helpful discussion and to an anonymous referee for many detailed and constructive comments on an earlier version. All remaining errors and omissions are our own. Financial support received by MIUR is gratefully acknowledged.
Rights and permissions
About this article
Cite this article
Aiello, F., Cardamone, P. R&D spillovers and firms’ performance in Italy. Empirical Economics 34, 143–166 (2008). https://doi.org/10.1007/s00181-007-0174-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00181-007-0174-x