Spatial agglomeration, innovation and firm survival for Italian manufacturing firms

Arnab Bhattacharjee, Ornella Maietta, Fernanda Mazzotta

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)


The innovativeness of a firm not only improves its own survival chances but also can generate externalities on its neighbouring firms. We empirically examine the role of agglomeration economies in how innovativeness affects firm survival in southern Italy, using spatial weights to model spillovers. Spatial Durbin probit model estimates confirm that innovation is an important determinant of firm survival, not only for firms that are themselves innovative but also for those located close to other innovative firms. Adequate definitions of spatial scale and spatial weights are important. Spillover benefits are enhanced by agglomeration economies, but only at a very local scale.
Original languageEnglish
Pages (from-to)318-345
Number of pages28
JournalSpatial Economic Analysis
Issue number3
Early online date28 Feb 2023
Publication statusPublished - 3 Jul 2023


  • C21
  • C41
  • D22
  • L20
  • O3
  • firm survival
  • innovation
  • southern Italian SMEs
  • spatial models
  • spillovers

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics, Econometrics and Finance(all)
  • Statistics, Probability and Uncertainty
  • Earth and Planetary Sciences (miscellaneous)


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