Inter-Firm Networks: Determinants and Innovation beyond Regional Boundaries. Evidence from Italy

Starting from the literature on inter-firm networks and embracing the industrial district perspective for what concerns innovation and knowledge spillovers, the paper investigates the determinants of inter-firm networks by exploring the geographical and industrial specialization profiles of network members and the role of innovation. The empirical analysis is based on two strategies: firstly, is analysed the impact over the firm’s performance of being a member of a network. This part is based on a panel data of 4,033 Italian firms for the period 2011-2015. Secondly, with a cross-section analysis for the year 2013, are measured the different effects of network determinants for interfirm network’s performance. From the estimates, we find that belonging to an inter-firm network have a positive impact on firms’ profitability, and having a district firms in the network and being internationally oriented (rather than innovation) are two key features of these new agreements.