Knowledge Spillovers and the Growth of Local Industries

31 Pages Posted: 7 Sep 2001

See all articles by Mario Forni

Mario Forni

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics; Centre for Economic Policy Research (CEPR)

Sergio Paba

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics

Date Written: August 2001

Abstract

The literature on localised knowledge spillovers and growth focuses on the relative importance of intra vs. inter-industry externalities, but the nature and the characteristics of the dynamic linkages across manufacturing sectors are not investigated. In this Paper we perform a very disaggregated analysis in order to identify, for each 3-digit industry, which composition of industrial activity is more conducive to growth. We find that diversity matters for growth, but each industry needs its own diversity. We provide some evidence of clustering of industries based on dynamic externalities. We find that many spillovers occur within input-output relationships. They often originate in downstream sectors favoring the growth of upstream industries. Lastly, the importance of spillovers does not depend on the technological intensity of the industry.

Keywords: Spillovers, growth, spatial agglomeration

JEL Classification: L60, O30, R11

Suggested Citation

Forni, Mario and Paba, Sergio, Knowledge Spillovers and the Growth of Local Industries (August 2001). Available at SSRN: https://ssrn.com/abstract=282575

Mario Forni (Contact Author)

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics ( email )

Viale Berengario 51
41100 Modena, Modena 41100
Italy
+39 059 205 6852 (Phone)
+39 059 205 6947 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Sergio Paba

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Faculty of Business and Economics ( email )

Viale Berengario 51
41100 Modena, Modena 41100
Italy
+39 59 417 854 (Phone)
+39 59 417 947 (Fax)

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