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The innovative impact of public research institutes: evidence from Italy

Robbiano, Simone (2021): The innovative impact of public research institutes: evidence from Italy.

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Abstract

This paper leverages on the establishment of Italian Institute of Technology (IIT) as a policy change useful to understand the causal effect of public funded research centres on the regional innovative capacity. By relying on the Synthetic Control Method (SCM) approach and Italian NUTS-3 panel data, empirical results suggest that the establishment of IIT has positively impacted on regional innovation and high-skilled human-capital, as well as on regional growth. The paper also provides evidence of knowledge spillovers from IIT within the hosting region. Finally, these results are robust to a variety of placebo permutation tests as well as several sensitivity checks, or when considering a Difference-in-Differences (DiD) approach.

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