How Universities Contribute to the Creation of Knowledge Intensive Firms: Detailed Evidence on the Italian Case

Abstract

Using information on new knowledge intensive firms (KIFs) and universities in Italy, this chapter explores whether and how new KIFs creation at the local level depends on university presence. We evaluate the impact on new KIFs creation of: i) the different knowledge inputs offered by universities to geographical areas in which they are embedded and ii) the field of science in which universities are specialized. Moreover, we study whether and how the impact of university presence on new KIFs creation in a geographical area depends on economic development. After having classified data into geographical units (NUTS 3 level, Italian provinces), according to the location of new KIFs and universities, we estimate negative binomial regression models, where the dependent variable is the number of new KIFs in each Italian province. Results suggest that new KIFs creation at the local level is influenced by university presence. Furthermore, university specialization in the field of engineering and medical sciences positively influences new KIFs creation at the local level. Finally, we find a strong and significant effect of university presence in southern less developed provinces. Conversely, our data document that university presence does not affect new KIFs creation in northern, well developed provinces. We interpret these findings in light of the Italian North-South divide.