Productivity,innovation strategies and industrial relations in SMEs. Empirical evidence for a local production system in northern Italy

The paper aims to provide an original contribution to evaluating several kinds of relations between four areas of innovation activities – training, technology, organization, ICT (information and communication technologies) – and industrial relations and firm’s economic performance. Quantitative evidence for a SME‐based local production system is provided by exploiting two datasets: the first is derived from a direct survey carried out in 2005 collecting data on innovations, labour flexibility and industrial relations; the second is represented by a panel of official balance sheets data for the period 1998–2004. The analysis is divided in two consequential parts. We first examine the drivers of different innovation strategies and subsequently we exploit innovation indicators as potential drivers of firm’s productivity. The results show that training activities and organizational changes have strong links with many industrial relations indicators, thus emerging as industrial relations driven innovations. On the contrary, ICT and technological innovation seem to be more influenced by firms’ past performances than by industrial relations. The analysis on labour productivity drivers shows that training activities are the most relevant factors; then, ranked consequently, technological innovation, organisational innovations and, finally, ICT also appear to impact on productivity levels. It is worth noting that the role of ICT emerges more robustly when endogeneity is specifically addressed. Finally, the role of firm size seems here to be overshadowed by other drivers.     

Firm ownership,industrial structure,and regional innovation performance in China's provinces

This paper uses panel data between 2000 and 2010 to explore how firm ownership and regional industrial structures contribute to regional innovation performance in Chinese provinces. Specifically, we explore how the extent of specialisation and diversification in regional industrial structures at the province level fosters both Marshall–Arrow–Romer and Jacobs spillovers, as well as how foreign and state ownership influence regional innovation. We find: (i) China's regional innovation systems benefit from Jacobs but not MAR externalities, with the former spurring higher quality innovation in the form of increased invention patenting; (ii) state-owned enterprises and foreign-invested enterprises advance local innovation, with the latter again fostering higher quality innovation; and (iii) a convergence towards a combination of low specialisation and high diversity in provincial industrial structure is taking place between China's more developed inland coastal provinces and less developed inland provinces. Implications and suggestions for policy-making and future research are discussed.     

Innovation types and labour organisational practices: A comparison of foreign and domestic firms in the Reggio Emilia industrial districts

In his Theory of Economic Development, Schumpeter introduced the distinction between different innovation types. Since then, a variety of studies have addressed this topic. However, despite of the recognised significance of more de-verticalised organisational forms in shaping and directing firms' innovative performance, no attempt has been made, as far as our knowledge is concerned, to investigate whether these practices are linked to the introduction of specific innovation types. The aim of the study is to fill this gap by investigating the impact of de-verticalised forms of labour organisational practices, different modes of organising research and development activity and the nature of employees' competences on the likelihood of introducing different types of innovations, controlling for firm's size and sectoral specificities. The results obtained on a sample of 199 firms located in Reggio Emilia province in Italy confirm that innovation development is a heterogeneous activity. The empirical evidence gathered also shows that foreign and domestic firms do not differ, to some extent, in the introduction of different kinds of innovations. However, being foreign or domestic is a discriminating factor in the introduction of innovations stimulating labour organisational developments.