The spatial evolution of the Italian motorcycle industry (1893-1993): Klepper's heritage theory revisited

Abstract

This article investigates the spatial evolution of the Italian motorcycle industry during the period 1893-1993. We find strong support for the heritage theory of Klepper, even after controlling for agglomeration economies. However, we find also a positive effect of being located in the Motor Valley cluster in Emilia Romagna on the survival rate of motorcycle firms. Interestingly, this beneficial effect is stronger in the Emilia Romagna cluster than elsewhere. This might indicate the importance of a favorable local institutional environment, as propagated by the Emilian district literature.