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Cambridge Journal of Economics Advance Access originally published online on January 28, 2009
Cambridge Journal of Economics 2009 33(5):1001-1022; doi:10.1093/cje/ben063
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© The Author 2009. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

This article appears in the following Cambridge Journal of Economics issue: Special focus: Moral Economy and Development Economics [View the issue table of contents]

Innovation, structural change and productivity growth: evidence from Italian regions, 1980–2003

Francesco Quatraro*

* Bureau of Research on Innovation, Complexity and Knowledge (BRICK), Collegio Carlo Alberto, Torino and University of Turin, Italy. The background research for this paper was carried out during my visiting period at the CRIC, University of Manchester. Preliminary versions of this papers have been presented at the Department of Economics Lunch Seminar, University of Torino on 10 May 2007, and at the 5th EMAEE Conference at the Manchester Metropolitan University on 17–19 May 2007

Address for correspondence: Laboratory of Economics of Innovation ‘F. Momigliano’, Department of Economics, University of Turin, Via PO 53, 10124 Turin, Italy; email: francesco.quatraro{at}unito.it

This paper develops a Schumpeterian approach to structural change, by grafting the role of business cycles and creative destruction into the growth retardation theory. The context of the empirical analysis is represented by the growth path of 20 Italian regions over the period 1981–2003, in the light of the transition towards the knowledge-based economy. The results strongly support our hypotheses: (i) early-industrialised areas are fully involved in the generalised movement towards the knowledge-based economy; (ii) due to the delayed expansion of manufacturing activities in late-industrialised areas, productivity growth and innovation takes place within manufacturing sectors.

Key Words: Structural change • Growth retardation • Innovation • Regional productivity growth

JEL classifications: O33, R11

Manuscript received July 30, 2007; final version received October 28, 2008.


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