We are grateful for helpful comments from Antonio Acconcia, Nick Bloom, Dimitrios Christelis, Sergio Destefanis, Liran Einav, Pino Lubrano, Nour Meddahi, Marco Pagano, Bill Rogerson, Francois Salanié, Nicolas Serrano-Velarde, Emanuele Tarantino, and John Van Reenen. Seminar participants at the Annual I.O. Fest at Berkeley, Federal Reserve Bank of Minneapolis, ASSA Meetings in New Orleans (2008), Society for Economic Dynamics Meetings in Boston (2008) and the Toulouse Applied Econometrics Workshop (2009) are gratefully acknowledged. We also thank the Editor and two referees for important comments that helped us to improve the paper. Attilio Luigi Pasetto and the UniCredit Group are gratefully acknowledged for providing data. All errors remain ours.
Delegation, Ownership Concentration and R&D Spending: Evidence From Italy†
Article first published online: 24 MAR 2013
© 2013 Blackwell Publishing Ltd and the Editorial Board of The Journal of Industrial Economics
The Journal of Industrial Economics
Volume 61, Issue 1, pages 84–107, March 2013
How to Cite
Kastl, J., Martimort, D. and Piccolo, S. (2013), Delegation, Ownership Concentration and R&D Spending: Evidence From Italy. The Journal of Industrial Economics, 61: 84–107. doi: 10.1111/joie.12012
- Issue published online: 24 MAR 2013
- Article first published online: 24 MAR 2013
We use data from the Italian manufacturing industry to document a positive correlation between delegation and R&D. This result is robust to controlling for the determinants of R&D such as human capital, capital intensity and sectoral or regional effects. We further investigate the determinants of delegation and find that ownership concentration is significantly related to delegation. Among large firms with a dispersed ownership structure, larger ownership concentration implies less delegation, whereas the opposite emerges with more concentrated ownership. Differences between the Northern and Southern regions in terms of firms' propensity to delegate decisions and engage in R&D also emerge.