Which are the Factors Influencing Innovation Performances? Evidence from Italian Cohesion Policy

Our paper aims at evaluating the role that the local administrations play on Italian regional innovation performance, by using a revised version of Regional Innovation Scoreboard. Carrying out a panel data analysis and a logistic regression, the analysis is based on a combined approach towards institutions, involving socio-political aspects, considered by the institutional quality index, and the capability of regional administrators of expending Structural and Cohesion Funds, by a quantitative index. Firstly, a panel data analysis helped us to highlight the role of institutions and which sectoral themes of EU investments affected the most regional innovative performances in the time span 2007-2015. Secondly, the logistic regression captures which investment is more likely to affect innovation performances within Italian Regions. The results underline that major effect on innovation performance derive from the combined effect of high quality institutions and efficient public expenditure.