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dc.contributor.authorBellettini, Giorgioen_US
dc.contributor.authorBerti Ceroni, Carlottaen_US
dc.contributor.authorPrarolo, Giovannien_US
dc.date.accessioned2011-05-20en_US
dc.date.accessioned2011-06-29T11:21:30Z-
dc.date.available2011-06-29T11:21:30Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/46568-
dc.description.abstractWe empirically investigate whether the persistence of politicians in political institutions affects the innovation activity of firms. We use 12,000 firm-level observations from three waves of the Italian Observatory over Small and Medium Enterprises, and introduce a measure of political persistence defined as the average length of individual political careers in political institutions of Italian municipalities. Standard OLS shows no raw correlation between political persistence and firms' innovation activity. However, once the causal effect is isolated by means of instrumental variables, using death of politicians as an exogenous source of variation of political persistence, we find a robust negative relation between political persistence and the probability of process innovation. This finding is consistent with the view that political stability may hinder firms' incentive to innovate to maintain their competitiveness, as long as they can extract rents from long-term connections with politicians.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper: Fiscal Policy, Macroeconomics and Growth 3350en_US
dc.subject.jelD22en_US
dc.subject.jelD72en_US
dc.subject.jelO31en_US
dc.subject.ddc330en_US
dc.subject.keywordinnovationen_US
dc.subject.keywordpoliticiansen_US
dc.subject.keywordtenureen_US
dc.subject.keywordinstrumental variableen_US
dc.subject.stwInnovationen_US
dc.subject.stwKlein- und Mittelunternehmenen_US
dc.subject.stwPatronageen_US
dc.subject.stwPolitische Stabilitäten_US
dc.subject.stwGemeindeen_US
dc.subject.stwItalienen_US
dc.titlePersistence of politicians and firms' innovationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn659413566en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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