R&D Spillovers and Firms’ Performance in Italy: Evidence from a Flexible Production Function

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.

Keywords: R&D spillovers, Translog production function, Italian manufacturing firms

JEL Classification: O33, L29, C23

Accepted Paper Series