Giuseppe  Vittucci MarzettiChange photo
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  • Department of Sociology and Social Research
    University of Milano-Bicocca
    Via Bicocca degli Arcimboldi 8
    20126 Milan
    Italy
  • Phone: +39 02 6448 7457
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Departing from the usual tenets of proportionality between cross-border trade flows and knowledge spillovers, we investigate whether relatively intense trade relationships are associated with particularly large international R&D... more
Departing from the usual tenets of proportionality between cross-border trade flows and knowledge spillovers, we investigate whether relatively intense trade relationships are associated with particularly large international R&D spillovers. A nonlinear specification nesting the hypothesis of global and trade-unrelated R&D spillovers is estimated on a sample of 24 advanced countries over 1971-2004. We find evidence that trade patterns positively affect the international
transmission of knowledge, in particular when we consider bilateral trade flows that, thanks to the estimation of an auxiliary gravity model, are normalized for the size and the distance of the trading partners. Finally, we discuss the patterns of the bilateral relationships characterized by both relatively intense trade and large R&D spillovers.
This work investigates the systemic factors behind cross-country variability in the transnational media coverage of foreign news in the EU in 2010. Using a large dataset on the transnational coverage of news by 148 EU national media, the... more
This work investigates the systemic factors behind cross-country variability in the transnational media coverage of foreign news in the EU in 2010. Using a large dataset on the transnational coverage of news by 148 EU national media, the paper maps the network of EU transnational citations and performs a quantitative assessment of their systemic determinants via the estimation of a gravity model of news. Nine empirical hypotheses are tested. Size and economic development of the target (source) country are positively (negatively) associated with the probability of coverage. Historical, linguistic and economic ties increase this probability. The evidence on the effect of the countries’ participation in the currency union is weak: once the historical levels of trade integration and the effects of the sovereign debt crisis are accounted for, there is no robust evidence of a higher integration of the media spheres within the euro area.
The paper analyzes the nonlinearities in the impact of localization, diversity, urbanization and competition on firm-level TFP, using a large sample of Italian firms from 1999 to 2007. We adopt a Panel Smooth Transition Regression model,... more
The paper analyzes the nonlinearities in the impact of localization, diversity, urbanization and competition on firm-level TFP, using a large sample of Italian firms from 1999 to 2007. We adopt a Panel Smooth Transition Regression model, so that the TFP elasticities are free to vary smoothly across two or more extreme values. Results show that localization economies and Jacobian externalities materialize only for values of, respectively, intra-industry agglomeration and extra-sectoral diversity above a certain threshold. Local competition exerts a positive effect on productivity, even though the marginal impact shrinks at high levels of competition. We find instead no evidence of diseconomies of agglomeration.
The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and... more
The paper investigates the effect of spatial agglomeration on firm exit in a dynamic framework. Using a large dataset at the industry-province level for Italy (1998-2007), we estimate a spatial dynamic panel model via a GMM estimator and analyze the short-run impact of specialization and variety on firm exit. Specialization negatively affects firm exit rates in the short-run. The effect is particularly significant for low-tech firms. The impact of variety on firm mortality rates at the industry level is instead less clear, although still negative and significant for low-tech firms.
We investigate how a country’s absorptive capacity and relative backwardness affect the impact of international R&D spillovers on domestic Total Factor Productivity (TFP). To account for nonlinearities, we adopt a Panel Smooth Transition... more
We investigate how a country’s absorptive capacity and relative backwardness affect the impact of international R&D spillovers on domestic Total Factor Productivity (TFP). To account for nonlinearities, we adopt a Panel Smooth Transition Regression approach, where a country’s TFP elasticity to the foreign R&D stock is allowed to change smoothly across various identified extreme values, and the change is related to observable transition variables: human capital (capturing the country’s absorptive capacity) and relative backwardness. The results suggest that absorptive capacity is positively associated with international R&D spillovers. In contrast with previous results, relative backwardness is instead found to have a negative and significant impact on international knowledge spillovers.
We present a generalization of spatial power indexes able to overcome their main limitations, namely: i) the excessive concentration of power measures; ii) the too high sensitivity to players' location in the ideological space. Voters'... more
We present a generalization of spatial power indexes able to overcome their main limitations, namely: i) the excessive concentration of power measures; ii) the too high sensitivity to players' location in the ideological space. Voters' propensity to support an issue is modeled via a random utility function with two additive terms: the deterministic term accounts for voters' preference-driven/predictable behavior; the random one is a catch-all term that accounts for all the idiosyncratic/unpredictable factors. The relative strength of the two terms gives rise to a continuum of cases ranging from the Shapley value, where all aggregation patterns are equally probable, to a standard spatial value, like the Owen-Shapley index, where instead the conditional order is fully deterministic. As an illustrative application, we analyze the distribution of power in the Council of Ministers under three different scenarios: i) EU15 Pre-Nice; ii) EU27 Nice Treaty; iii) EU27 Lisbon Treaty.
Whether international R&D spillovers are global and trade-related is still a debated issue. By adopting two specifications that nest models previously estimated in the literature, we test the hypothesis that international R&D spillovers... more
Whether international R&D spillovers are global and trade-related is still a debated issue. By adopting two specifications that nest models previously estimated in the literature, we test the hypothesis that international R&D spillovers are global and trade-unrelated for a sample of OECD countries over the period 1971-2004. In particular, via a randomization exercise, we reject the null hypothesis of a “global pool of technology” and show that there are partitions of countries associated with relatively strong/weak knowledge spillovers. Then, we estimate a nonlinear specification that includes simultaneously geographical distance and international trade among the determinants of domestic TFP. We find robust evidence that both factors affect how foreign knowledge impacts on the domestic productivity of each recipient country.
The paper analyzes how (production and financial) inter-firm networks can affect firms’ default probabilities and observed default rates: an issue the recent crisis has brought to the front of the debate. A simple theoretical model of... more
The paper analyzes how (production and financial) inter-firm networks can affect firms’ default probabilities and observed default rates: an issue the recent crisis has brought to the front of the debate. A simple theoretical model of shock transfer is built up to investigate some stylized facts on how firm-idiosyncratic shocks tend to be allocated in the network, and how this allocation changes firms’ default probability. The model shows that the network works as a perfect “risk-pooling” mechanism, when it is both strongly connected and symmetric. But the resort to “risk-sharing” does not necessarily reduce default rates in the network, unless the shock they face is lower on average than their financial capacity. Conceived as cases of symmetric inter-firm networks, industrial districts might have a comparative disadvantage in front of “heavy” financial crises such as the current one.
The paper analyzes how the structure of social networks affects innovation diffusion and competition under different information regimes. Diffusion is modeled as the result of idiosyncratic adoption thresholds, local network effects and... more
The paper analyzes how the structure of social networks affects innovation diffusion and competition under different information regimes. Diffusion is modeled as the result of idiosyncratic adoption thresholds, local network effects and information diffusion (broadcasting and demonstration effect from previous adopters). A high social cohesion decreases the probability of one innovation cornering the market. Nonetheless, with imperfect information, in small-world networks the higher speed of diffusion produced by the low average distance increases this probability. A low social cohesion also increases the probability of falling into traps of under-adoption. However, such probability is significantly lower with imperfect information, because such regime is characterized by higher levels of market concentrations and this reduces the frictions due to the coexistence of non-compatible product innovations.
"The fund-flow approach to production theory was proposed by Nicholas Georgescu-Roegen almost half a century ago and it provides a description of production as a process unfolding in time and entailing a temporal coordination between... more
"The fund-flow approach to production theory was proposed by Nicholas Georgescu-Roegen almost half a century ago and it provides a description of production as a process unfolding in time and entailing a temporal coordination between different elements. Despite the initial interest, the approach has seldom received attention by mainstream economists and it is not yet well known. The paper critically surveys Georgescu-Roegen’s model, together with: i) the later developments and modifications; ii) the recent criticisms focused on its limitations
due to the instrumental assumption of constant efficiency for funds. The paper concludes by discussing the limits and comparative merits and suggesting possible applications."
English abstract: The paper investigates the role spatial agglomeration has in affecting firm mortality of industries. In particular, the role of variety and specialization is addressed, along with the extent to which industrial clusters... more
English abstract: The paper investigates the role spatial agglomeration has in affecting firm mortality of industries. In particular, the role of variety and specialization is addressed, along with the extent to which industrial clusters can be retained industrial districts. Empirical evidence is provided for a large panel of Italian provinces and manufacturing sectors, over the period 1995-2007. Urbanization economies, rather than localization ones, significantly diminish firm mortality of industries at the local level.
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The paper estimates the impact on Total Factor Productivity of trade-related R&D spillovers by accounting for the economic distance between countries. The Average Propagation Length foreign R&D covers to reach a domestic country is used... more
The paper estimates the impact on Total Factor Productivity of trade-related R&D spillovers by accounting for the economic distance between countries. The Average Propagation Length foreign R&D covers to reach a domestic country is used in building the foreign available R&D stock and to estimate its TFP impact vs. that of the domestic R&D stock. With respect to 20 OECD countries in the period 1995-2005, the impact on TFP of the available foreign R&D stock is greater than that of the domestic one. Results support the models that recognize indirect trade-related R&D spillovers and provide for them a more
accurate interpretation.
The paper assesses the impact of Organization Capital (OC) on firm performance for a sample of European firms. OC is proxied by capitalizing Selling, General and Administrative expenses, an income statement item. Results are robust and... more
The paper assesses the impact of Organization Capital (OC) on firm performance for a sample of European firms. OC is proxied by capitalizing Selling, General and Administrative expenses, an income statement item. Results are robust and show the strong effect of OC on firm performance.
The diffusion of outsourcing and vertical foreign direct investment (FDI) among manufacturing firms, along with the vertical integration of market services into manufacturing, is questioning the ‘Deindustrialisation/Tertiarisation’ (DT)... more
The diffusion of outsourcing and vertical foreign direct investment (FDI) among manufacturing firms, along with the vertical integration of market services into manufacturing, is questioning the ‘Deindustrialisation/Tertiarisation’ (DT) hypothesis. In particular, it has been argued that DT might be an ‘apparent’ phenomenon, in fact amounting to a simple reorganisation of production across national and sectoral boundaries. The empirical studies that try to support this hypothesis, however, cannot be deemed conclusive as they suffer two methodological drawbacks: a sectoral level of analysis and a not truly global empirical approach. In order to overcome these drawbacks, the paper carries out an investigation of the actual extent to which DT occurred in the OECD area over the 1980s and the 1990s with two modifications: a subsystem instead of sectoral perspective, retaining both direct and indirect relations and a ‘pseudo-world’ of seven OECD countries, thus taking into account the ‘global’ dimension of the phenomenon. Our results strongly support the DT hypothesis: although the weight of market services in the manufacturing subsystem increases, providing a counterbalance to manufacturing decline, subsystem shares significantly decrease, thus confirming DT as a more fundamental trend of the investigated period.
A large number of studies has been canvassed by the growing rates of diffusion of Open Source Software. However, a formal analysis of the process of competition between open–source and proprietary software is still missing. We propose an... more
A large number of studies has been canvassed by the growing rates of diffusion of Open Source Software. However, a formal analysis of the process of competition between open–source and proprietary software is still missing. We propose an epidemic model of innovation diffusion to deal with the different factors (profits for proprietary software and developers’ motivations for open-source software) upon which such a process of competition ultimately depends Moreover, we add network effects and switching costs, together with the endogenisation of the parameters of the speed of diffusion influencing the final outcome. We show the conditions for an asymptotically stable equilibrium to exist, where both softwares coexist. When the propagation coefficient is endogenous, winner-take-all solutions are also likely. Furthermore, an increase in the level of the switching costs for one software increases the number of its adopters, while reducing that of the other one. If the negative network effects increase for one of the two softwares, then the equilibrium level of users of that software decreases.
The paper discusses, illustrates and possibly contributes to overcoming two methodological problems that emerge in applying Social Network Analysis (SNA) to the study of IO-based innovation flows matrices. The first has to do with the... more
The paper discusses, illustrates and possibly contributes to overcoming two methodological problems that emerge in applying Social Network Analysis (SNA) to the study of IO-based innovation flows matrices. The first has to do with the scale-effects these matrices suffer from. The second refers to the need of dichotomising the matrices. Through an illustrative application to six OECD countries in the mid-1990s, the paper shows that, as for the former problem, different relativisation procedures can be, and have been, used, which either tend to alter the actual meaning of standard SNA indicators, or do not properly take into account the actual composition of countries' final demand. As for the latter problem, the paper shows that the choice of discrete cut-offs is extremely sensitive, as comparative results actually change along the continuum of the matrices values. In order to overcome the scale problem, a new relativisation procedure is put forward that measures innovation flows embodied in a unit value basket of final demand and thus properly retains all the information provided by the original matrix of intersectoral innovation (embodied) flows. In addressing the problem of dichotomisation, the paper suggests, as a second best, to work with density distributions that can make the choice of discrete cut-off values less arbitrary.
The paper aims to investigate how innovations cluster in different technological systems (TSs) when their “techno-economic”, rather than “territorial” space, is considered. Innovation clusters of economic sectors are identified by... more
The paper aims to investigate how innovations cluster in different technological systems (TSs) when their “techno-economic”, rather than “territorial” space, is considered. Innovation clusters of economic sectors are identified by referring to the innovation “potential” represented by their R&D expenditure and by applying social network analysis to the intersectoral R&D flows matrices of 15 OECD countries in the mid-1990s. Different clusterization models are first tested in order to detect the way sectors group on the basis of the embodied R&D flows they exchange. Actual clusters are then mapped in the different TSs by looking for intersectoral relationships which can be qualified to constitute “reduced TSs” (ReTSs). In all the 15 TSs investigated the techno-economic space appears organized in hierarchies, along which its constitutive sectors grouped into clusters with different density and composition. Once ReTSs are looked for, the 15 TSs display highly heterogeneous structures, but with some interesting similarity on the basis of which different clusters of TSs can be identified in turn.
Although FDI have been at the forefront of economic debate since a long time, economists have not yet developed a unified framework for their investigation. In this paper, we put forward the idea that an essential point to analyze FDI... more
Although FDI have been at the forefront of economic debate since a long time, economists have not yet developed a unified framework for their investigation. In this paper, we put forward the idea that an essential point to analyze FDI concerns their underpinning motives. Motives are at the core of FDI and FDI are only but one of different alternative means for firms to grasp an opportunity in a foreign country. We discuss the factors that shape the set of available alternatives and analyze those affecting the decision to engage in FDI (internalisation determinants), along with those influencing their localisation (localisation determinants). Starting from Dunning (1993) we put forward a revised taxonomy of FDI motives consistent with this framework - resource seeking, market seeking and non-marketable asset seeking. In order to show its practical implications, we survey common empirical issues on FDI showing how our analysis can shed light on seemingly contradictory empirical results.
Abstract: In a much cited paper, Wolfgang Keller (Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D... more
Abstract: In a much cited paper, Wolfgang Keller (Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D spillovers are global and trade-unrelated. In following works, Keller revisits his position and maintains that spillovers are localized because the tacit nature of knowledge favors the direct interaction among agents.
Global sourcing can increase firms’ productivity via the quality upgrading of intermediates, but, because of the heterogeneity of suppliers, it also increases screening costs of final firms given the need to search for good suppliers. We... more
Global sourcing can increase firms’ productivity via the quality upgrading of intermediates, but, because of the heterogeneity of suppliers, it also increases screening costs of final firms given the need to search for good suppliers. We build up a simple model to analyze these factors and show that large firms can better exploit the potential gains from quality upgrading. Moreover, we show that business & social networks make both the overall production and firms’ profitability increase via the reduction in firms’ unit screening costs. There are cumulative beneficial effects of these networks: Thicker networks imply higher cost saving and thus further incentives to invest in network linkages. Finally, we sketch a possible extension of the model to analyze the choice of local vs. global sourcing strategies and how their differences, in terms of costs, suppliers’ heterogeneity and degree of embeddedness in networks, affect firms’ choices and their efficiency.
The examination in this paper aims to bridge outsourcing and structural change analyses in order to obtain more accurate insights into the extent of outsourcing and to extract more reliable policy recommendations for dealing with its... more
The examination in this paper aims to bridge outsourcing and structural change analyses in order to obtain more accurate insights into the extent of outsourcing and to extract more reliable policy recommendations for dealing with its effects. We do this by applying a ‘battery’ of outsourcing measurements to a group of OECD countries from 1980 to the mid 1990s. Expected results (e.g. the idiosyncratic outsourcing patterns of the UK) are confirmed on a more systematic and comparable basis, while original results (e.g. the low integration of business services in manufacturing in the former socialist economies) are based on the exploitation of new data.
In a recent paper, McCarthy and Anagnostou (2004, The impact of outsourcing on the transaction costs and boundaries of manufacturing, International Journal of Production Economics, 88, pp. 61-71) use a decomposition approach put forward... more
In a recent paper, McCarthy and Anagnostou (2004, The impact of outsourcing on the transaction costs and boundaries of manufacturing, International Journal of Production Economics, 88, pp. 61-71) use a decomposition approach put forward by Dietrich (1999, Explaining economic restructuring: an input-output analysis of organisational change in the European Union, International Review of Applied Economics, 13(2), pp. 219-40) to analyze the impact of contracting-out in the UK manufacturing decline over the '80s and the '90s. Dietrich claims that this decomposition can distinguish the part of the manufacturing output decrease produced by the increased integration of services in manufacturing from the one which is instead produced by final demand-related changes.This paper aims at critically examining Dietrich's decomposition approach and showing its flaws. In so doing, the paper also carefully analyzes the changes outsourcing produces in input-output tables. Thus, it might prove useful also in avoiding further mistakes in using input-output analysis for studying outsourcing-related changes in economic structure.
The paper aims at investigating the capacity of input-output analysis to identify the structural change implications of outsourcing. In particular, it develops the idea that outsourcing leaves «traces» in the intersectoral structure of... more
The paper aims at investigating the capacity of input-output analysis to identify the structural change implications of outsourcing. In particular, it develops the idea that outsourcing leaves «traces» in the intersectoral structure of one economy that can be caught empirically, to a different extent by different indicators. The pros and cons of these indicators are discussed from a methodological point of view and their actual interpretative power shown through an application to the OECD area for the ’80s and the early ’90s. The main result of the paper is that an accurate mapping of the relationship between outsourcing and structural change requires us to use different indicators jointly, rather than alternatively. In particular, a purely sectoral kind of perspective needs to be combined with a subsystem one, which detects the effects of outsourcing on the vertical integration degree of one economy’s sectors.
Abstract: The paper aims at investigating the structural change implications of outsourcing. In trying to bridge the organizational/industrial and the sectoral/structural analysis of outsourcing, it discusses the rational and the... more
Abstract: The paper aims at investigating the structural change implications of outsourcing. In trying to bridge the organizational/industrial and the sectoral/structural analysis of outsourcing, it discusses the rational and the methodological pros and cons of a" battery" of outsourcing measurements for structural change analysis. Their functioning is then illustrated through a concise application of them to the OECD area over the'80s and the early'90s.
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