The Role of Spatial Agglomeration in a Structural Model of Innovation, Productivity and Export: A Firm-Level Analysis

24 Pages Posted: 8 Sep 2009

See all articles by Roberto Antonietti

Roberto Antonietti

University of Padova - "Marco Fanno" Department of Economics and Management

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee; CERIS-CNR

Date Written: September 7, 2009

Abstract

Using a large sample of Italian manufacturing firms, in this paper we estimate a structural model of research, innovation, productivity and export performance augmented to take account for the role played by spatial agglomeration externalities. This model, which is an ‘augmented’ version of Crepon, Duguet and Mairesse (1998) model, comprises four main equations. The first identifies the factors underlying the intensity of Research and Development (R&D) investments; the second links R&D capital to innovation output; the third focuses on Total Factor Productivity (TFP) as determined by innovation; the fourth relates TFP to export performance. Our estimates show the significant role played by local externalities in these processes. In particular, related variety and urbanization positively affect the creation of new ideas through R&D, while specialization impacts on TFP to complement innovation output. Finally, urbanization economies support TFP in driving firms’ export performance.

Keywords: export, innovation, productivity, R&D, spatial agglomeration, related variety

JEL Classification: D24, F23, O18, O31, R12

Suggested Citation

Antonietti, Roberto and Cainelli, Giulio, The Role of Spatial Agglomeration in a Structural Model of Innovation, Productivity and Export: A Firm-Level Analysis (September 7, 2009). Annals of Regional Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1469527

Roberto Antonietti (Contact Author)

University of Padova - "Marco Fanno" Department of Economics and Management ( email )

via Del Santo 33
Padova, PD 35123
Italy
+390498271508 (Phone)
+390498274211 (Fax)

HOME PAGE: http://www.economia.unipd.it/category/ruoli/personale-docente?key=4FD07667CE6DC0DA28DDD61A73393A5F

Giulio Cainelli

Università degli Studi di Bari - Dipartimento per lo Studio delle Societa Mediterranee ( email )

Piazza Umberto I
70124 Bari, 70121
Italy

CERIS-CNR ( email )

Via Avogadro 8
10121 Torino
Italy

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