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Delegation and R&D Spending: Evidence from Italy

Author

Listed:
  • Jakub Kastl

    (Stanford University)

  • David Martimort

    (Toulouse School of Economics)

  • Salvatore Piccolo

    (Toulouse School of Economics, University of Naples and CSEF)

Abstract
We use data from the Italian manufacturing industry to document a positive relation- ship between delegation of decisions within organizations and involvement in research and development. This positive correlation is robust to controlling for the determi- nants of R&D within firms such as the level of human capital, capital intensity, sec- toral and regional effects and to using different measures of R&D. We also investigate the determinants of delegation in our sample. We find a positive correlation between ownership concentration and delegation, which goes against the findings of Shleifer and Vishny (1986). We also find that variables found as important determinants of delegation in French manufacturing by Acemoglu, Aghion, Lelarge, Van Reenen and Zilibotti (2007) do not appear important in our sample, and some even exhibit qualita- tively opposite effect. These disparities can perhaps be explained by differences in the studied samples and observed variables, and call for further studies of cross-country differences.

Suggested Citation

  • Jakub Kastl & David Martimort & Salvatore Piccolo, 2008. "Delegation and R&D Spending: Evidence from Italy," CSEF Working Papers 192, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 17 Oct 2009.
    • Handle: RePEc:sef:csefwp:192
    as

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    File URL: http://www.csef.it/WP/wp192.pdf
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    References listed on IDEAS

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    Keywords

    R&D; Delegation; Ownership Concentration; Asymmetric Information;
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