Industrial and Innovation Economics
Research focus
The Peer review has evaluated this group as Excellent
The research interests of the Industrial and Innovation Economics group cover three major fields.
1. International business
The group has been active in the area of international business since the mid ‘80s.
Specifically, our contribution to the international debate on multinational
enterprises (MNEs) and foreign direct investment (FDI) spans from the
determinants of international growth and FDI by MNEs, to the effects on host and
home countries, to the international aspects of technological change.
As far as the former, we have investigated the relationship between forms of
internationalization, the MNEs’ locational and entry mode choice, and the
relationships between FDI in manufacturing and financial services. The bulk of the
empirical evidence provided relies on the Reprint database (ie a census of Italian
FDI since 1986).
Likewise, concerning the effects of MNEs on the host and the home country, we
participated to the international debate on the existence of intra- and inter-industry
spillovers and their impact on productivity, and on employment and skill upgrading.
Finally, the long-lasting relationship with the University of Reading-UK (Centre for
International Business and Strategy), and with the Rutgers University has fostered
increasing involvement in the area of globalisation of R&D and innovation: the
location of MNEs’ innovative activities within Europe, the influence of the
interaction between subsidiaries and local networks on the location of
technological development efforts, the geographical pattern of technological
knowledge sourcing by subsidiaries, and the knowledge transfer from the
subsidiaries to the parent company, on the other. The latter, in particular, has led
to the development of an original database, RITMO-Research on Innovation and
Technology in Multinational Organizations (on best practices and knowledge
transfer in Italian multinationals). Around such a database we have developed
strong collaboration with the Copenhagen Business School and the Fox School of
Business at Temple University.
2. Economics of innovation
In this field, the group has first focused attention on entrepreneurship in high-tech
industries. First, we have studied the determinants of growth of new technologybased
firms (NTBFs). Second, we have analysed the existence of capital market
imperfections suffered from NTBFs in accessing both bank debt and venture
capital. Third, we have examined the heterogeneity among research-based spinoffs
and the differences between these firms and other NTBFs. Fourth, we have
analysed the effectiveness of technology policy measures towards Italian NTBFs.
The second research stream is concerned with mergers and acquisitions (M&A)
and alliances. As to M&As, we have studied at micro level the effects of M&A on
the innovation activity of the merging companies as a function of their
technological and market relatedness. As to alliances, we have first examined the
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determinants of the alliance likelihood and the choice of the alliance governance
structure for a sample of large ICT companies. Then we have studied the
determinants of NTBFs’ propensity to establish cooperative agreements and the
choice of the alliance organizational form.
The third reseach stream regards the diffusion and economic impact of
technological and organizational innovations. In this stream we have analyzed the
economic determinants of firms’ organizational design, the evolution of
organizational variables over time and their impact on firms’ profitability. Second,
we have examined the determinants of the adoption of technological innovations
and the interactions with organizational variables.
A fourth research stream is concerned with Open Source Software (OSS). In
particular, we have empirically investigated the business models of software firms
doing business out of OSS.
3. Economics of network industries
The group is also active in the applied research on network industries.
A primary research interest is the economics of telecommunications. First, we
have analysed the effects of regulatory reforms and privatization on research
activities and fixed investments at the firm level. Second, we have investigated the
determinants of the diffusion of the Internet, and have estimated the adoption by
Italian firms. Third, we have proposed special universal service tariffs.
More recently, substantial research efforts have been devoted to electrical utilities
and electrical markets. First, we have extensively written on quality regulation in
the electricity industry, by proposing an incentive regulation scheme and
empirically analysing the quality degradation costs suffered by customers. Second,
we have developed game-theoretic models of the wholesale electricity markets
with and without transmission constraints; this allows to analyse the firm’s strategic
conducts and their implications for social welfare. Third, we are empirically
exploring the location choice for locally-unwanted investments (i.e. NIMBY effect),
by developing a novel dataset for the Italian power investment projects and plants.
Finally, we have recently carried out a firm-level econometric analysis of the
relationship between privatization and quality delivery.
Dipartimento di afferenza
Dipartimento di Ingegneria Gestionale (DIG)
Docenti afferenti
Full Professors
Sergio Mariotti
Lucia Piscitello
Massimo G. Colombo
Paola Garrone
Assistant Professors
Cristina Rossi
Fabio Bertoni
Luca Grilli
Elena Fumagalli