Industrial districts, innovation and I-district effect: territory or industrial specialization?



fixed effect (0.34)10. The other typologies show negative differential effects
ranging from -0.5 for Large metropolitan areas to -0.45 for Primary and
Extractive LPS.

3. The estimates of the fixed effects by specialization (Table 5, last
column) suggest a positive performance related to the manufacturing sectors.
Fixed effects are positive and statistically significant for five of the nine
manufacturing specializations: Machinery et al. (0.69), Leather and Footwear
(0.65), Housing goods (0.47), Textile and clothing (0.46), and Food and
beverages (0.26). For the remaining manufacturing sectors the coefficients of
the fixed effects are smaller and statistically non-significant. In services, only
Social services have a statistically significant fixed effect, which is negative
(-0.47). Construction (-0.43) and Agriculture and Fishing (-1.21) have
negative and statistically significant coefficients.

4. The estimate of the interactive fixed effects by territory -
specialization (Table 5, central part) supports the evidence that, although both
are correlated, the territorial effect (typology of LPS) prevails over the
industrial specialization.

Regarding manufacturing sectors, the coefficient is positive and
economic and statistically significant for the industrial districts specialized in
Food and beverages (0.27), Textile and clothing (0.40), Housing goods (0.43)
and Leather and footwear (0.71)
11. In Chemistry and plastic, the opposite
performance is observed between the specialized LPS which are industrial
districts (0.46) and those of large firms (-0.54), in both cases statistically
significant. Since the two effects cancel each other out, this explains why the
aggregated fixed effect by specialization is close to zero and statistically non-
significant.

On the other hand, in Machinery the averaged fixed effect is positive
and statistically significant for industrial districts (0.57) and Manufacturing
LPS of large firms (0.72). Despite the fact that the strongest effect belongs to
the manufacturing LPS of large firms, in this case, it is possible to conclude
that there is more of a specialization than a territorial effect.

Analysing the coefficients by column (territory), for the industrial district
column six of the nine possible specializations are positive and statistically
significant and for other two are positive although statistically non-significant
(Table 5). For manufacturing LPS of large firms, no robust evidence of a
significant aggregated innovative effect was found: the signs are indistinctly
positive or negative and only three effects are statistically significant

10 The subsequent study of the separated effects (Table 5, central part) shows the
internal heterogeneity of this group, mainly composed by micro-SLP, and suggests a
cautious interpretation of the averaged effect.

11 In Leather and footwear, the territorial typology and specialization are basically the
same because only two specialized LPS are not industrial districts.

16



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