High-tech adoption and innovation in manufacturing firms: Evidence from an Italian industrial area
Abstract
Objective: The objective of this article is to empirically assess the relationship between firm characteristics, local innovation networks, and the level of high-tech adoption among manufacturing firms located in the Italian provinces of Fermo and Ascoli Piceno, i.e., two territories characterised by long-standing manufacturing traditions but differing sectoral specialisations. It focuses on the role of firm-level characteristics and local innovation ecosystems. I explored how firms in traditional industrial areas engage with new high-tech solutions, and which factors enable or hinder technological upgrading. By providing micro-level evidence from a central Italian economy, the article offers useful insights for industrial areas facing similar structural and technological challenges.
Research Design & Methods: The study adopted a mixed-methods approach combining firm-level financial data for 2022 with a web scraping activity and a cross-sectional survey conducted in December 2023 on manufacturing firms located in Fermo and Ascoli Piceno. The web scraping provided firms’ contact information, and the survey yielded 128 valid responses with information on technology adoption, perceived barriers, and innovation behaviour; I used firm-level data for the econometric analysis.
Findings: Results revealed a heterogeneous landscape of high-tech adoption across firms. While some firms, mainly big-sized, were actively implementing these technologies, a large share of small enterprises remained at early stages of high-tech adoption. Barriers included financial constraints, skill shortages, and uncertainty about returns. Conversely, firms operating within technological districts have already implemented, and are further advancing, the integration of several high-tech solutions into their manufacturing processes.
Implications & Recommendations: The findings suggest the need for targeted regional and industrial policies supporting high-tech readiness among firms. Policy actions should focus on enhancing managerial and technical capabilities, facilitating access to financing, and promoting inter-firm collaborations to foster technological diffusion. These recommendations are particularly relevant for traditional manufacturing regions and peripheral industrial areas, where firms face barriers to technological transformation.
Contribution & Value Added: This article contributes to the literature on technological transformation and Industry 4.0 by offering original evidence from a local manufacturing system. The study advances understanding of how territorial, sectoral, and firm-specific characteristics shape high-tech adoption, providing valuable insights for both scholars and policymakers engaged in supporting modernisation in local industries.
Keywords
innovation, industry 4.0, high-tech adoption, technological innovation, Italy
Author Biography
Noemi Giampaoli
Research Fellow at the Department of Economics and Social Sciences, Polytechnic University of Marche, Italy. Her research interests include international economics, digital innovation, firms’ structure, entrepreneurship, and regional dynamics.
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