New KIBS specialization in the Italian provinces over 2007-2020: proximity, ICT and localisation

This paper evaluates how features related to localization economies, innovation, and information and communications technology (ICT), influence the location of knowledge- intensive business services (KIBS) and the emergence of new specialization in KIBS across NUTS3 regions in Italy over the period 2007–2020. We adopt a Spatial Durbin Model (SDM), which shows a strong presence of interregional positive spatial spillover effects from neighbours’ NUTS3 regions. Common drivers, such as location in capital cities, input–output linkages between KIBS and manufacturing, innovation and ICT are confirmed to be key drivers of KIBS location. However, turning to the analysis of factors triggering new specialization across the KIBS sectors, a prominent role for urbanization economies and ICT emerges, as well as a more nuanced one for manufacturing intermediate demand and innovation. The policy implications point to the relevance of appropriate tools with which to face the strong intensity of the North–South divide and the capital-periphery gaps in of KIBS location and to achieve better performances, particularly in the technology based KIBS (T-KIBS).