Firms and Territories in 4.0 Transformations: Evidence from Italian Technological Knowledge Intensive Business Services

This thesis investigates the transformations associated with the development and diffusion of 4.0 technologies, by combining a firm-level perspective with a territorial-level perspective. The aim is to understand whether and to what extent the engagement of firms, in particular technological knowledge-intensive business services, in 4.0 innovation activities is affected by the characteris-tics of the territory, regions, cities, or local production systems, in which they are located. The thesis consists of three chapters. Chapter 1 comprises a systematic literature review of the studies that address Industry 4.0-related issues in industrialized countries from a regional perspective. The selected articles have been systematically collected and then discussed using a qualitative content-based approach. This review allowed for the identification of the main issues discussed and the gaps that exist in the literature and laid the foundation for the empirical analysis conducted in Chapter 2 and Chapter 3, which focus on private technological knowledge-intensive business services (t-KIBS) engaged in the production and/or provision of ICT services. The decision to concentrate on technological knowledge-intensive business services (KIBS) specializing in information and communication technology (ICT) is connected to their significant role in 4.0 transformations as they serve as both producers of these technologies and intermediaries and adapters, facilitating their adoption and implementation. Chapter 2 delves into the examination of the firm level and territorial level factors that influence the spatial distribution of the t-KIBS involved in the provision of 4.0 technologies (4.0 t-KIBS). 4.0 t-KIBS were identified using information extracted from t-KIBS websites, collected through web-scraping techniques. Then, a probit model with sample selection was employed to identify the most important territorial and firm-related factors influencing the decision to develop and/or provide 4.0 technologies. The results show that the probability of mentioning 4.0 technology is positively affected by t-KIBS size and profitability. From a territorial perspective, the main determinants are represented by demand coming from co-located manufacturers and to a lesser extent by urbanization economies. Finally, following the literature on KIBS variety, Chapter 3 explores the heterogeneous nature of the t-KIBS involved in the production and provision of 4.0 technologies. The objective is to gain insights into how these organizations differ across several key dimensions frequently examined in the KIBS variety literature. These dimensions encompass the geographical scope, innovation output, cognitive structure, external collaborations, and client focus. The empirical analysis draws on the same database built for Chapter 2 and on data collected through an original survey of a sample of 500 t-KIBS. The survey allowed for the collection of firm-level information that could not be retrieved from other data sources. The empirical analysis is split into two parts. Using a probit approach, the first part of the analysis explores whether and to what extent the peculiarities of 4.0 t-KIBS vary mainly according to their geographical scope and innovation output. The second part of the analysis employs a matching technique to compare certain attributes of 4.0 t-KIBS with those whose activities are not centred around 4.0 technologies. The main results show that the activities of 4.0 t-KIBS have a broader geographical scope that goes beyond local and regional boundaries. In contrast to established literature on KIBS, this is especially true for those t-KIBS that deliver customized innovations tailored to the needs of customers. From a cognitive perspective, it emerges the tendency of 4.0 t-KIBS to also rely on non-technical knowledge, while in terms of collaborations, they are more likely to collaborate with firms belonging to the same business group. Finally, 4.0 t-KIBS that are regionally anchored (i.e., they have not established an inter-regional network) are more likely to develop services and technologies specifically for public administrations.