This paper empirically assesses the stimulating effect of the ERGON1 program issued by the Lombardy Region (Italy). ERGON1 provided economic incentives for creating network contracts among firms, mostly located in the region. A network contract is an innovative policy instrument introduced in Italy in 2009, which fosters the creation of firm aggregations with an ad hoc contract, without resorting to mergers. Network contracts are meant to increase economic efficiency for all firms involved in the contract. A new database has been collected for the analyzes presented. Information is available on firms’ balance sheets, on ERGON1 call participants, and on network contracts existing in Italy as of 2015. Empirical results suggest that firms enjoy an increase in productivity after being financed to create network contracts. Causality issues are tackled by means of Propensity Score Matching Estimates. Estimates suggest that ERGON1 causes a better economic performance of firms in the sample.

Network contracts and firm performance: evidence from matching estimates of a regional program impact / Caragliu, A.; Landoni, P.; Sala, A.. - In: SR SCIENZE REGIONALI. - ISSN 1720-3929. - 18:2(2019), pp. 173-192. [10.14650/93646]

Network contracts and firm performance: evidence from matching estimates of a regional program impact

Landoni P.;
2019

Abstract

This paper empirically assesses the stimulating effect of the ERGON1 program issued by the Lombardy Region (Italy). ERGON1 provided economic incentives for creating network contracts among firms, mostly located in the region. A network contract is an innovative policy instrument introduced in Italy in 2009, which fosters the creation of firm aggregations with an ad hoc contract, without resorting to mergers. Network contracts are meant to increase economic efficiency for all firms involved in the contract. A new database has been collected for the analyzes presented. Information is available on firms’ balance sheets, on ERGON1 call participants, and on network contracts existing in Italy as of 2015. Empirical results suggest that firms enjoy an increase in productivity after being financed to create network contracts. Causality issues are tackled by means of Propensity Score Matching Estimates. Estimates suggest that ERGON1 causes a better economic performance of firms in the sample.
File in questo prodotto:
File Dimensione Formato  
Caragliu et al. 2019.pdf

non disponibili

Tipologia: 2a Post-print versione editoriale / Version of Record
Licenza: Non Pubblico - Accesso privato/ristretto
Dimensione 171.13 kB
Formato Adobe PDF
171.13 kB Adobe PDF   Visualizza/Apri   Richiedi una copia
Pubblicazioni consigliate

Caricamento pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11583/2842891