The spatial dimension of productivity in Italian co-operatives- Wessel Vermeulen

The spatial dimension of productivity in Italian co-operatives- Wessel Vermeulen

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  Learning from thrivingregional co-operative ecosystems | 1 December 2021 | WEBINAR #1 Wessel Vermeulen Economist OECD Trento Centre
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  The spatial dimensionof productivity in Italian co-operatives Key findings & takeaways 12-02-2021 Webinar OECD Trento Centre for Local Development Centre for Entrepreneurship, SMEs, Regions and Cities
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  2 Institutional framework Mattia Corbetta PolicyAnalyst Wessel Vermeulen Economist Alexandra Tsvetkova Policy Analyst/Economist Trento Centre for Local Development / LESI / CFE
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  Spatial distribution: Share ofco-operatives employment Italy average: CEs: 4.2% total employ. SCs: 2.4% total employ. Both CEs and SCs indicate a north-south pattern, but reversed from concentration Combined employment ranging from 12.9% in Emilia-Romagna 12.5% in Trento … 2.9% Aosta Valley 3.6% Calabria 3
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  Share of co-operativeemployment increased slightly in most regions during 2012-2017 0 2 4 6 8 10 12 14 2012 2017 Growth of employment share of co-operatives in 16 out of 21 regions Considerable increase in Molise and Trento 4
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  CEs and SCsconcentrate in specific sectors Cs 0 5 10 15 20 25 30 35 40 Employment as % of total sector employment CEs SCs Employment • CEs • Transport • Agrifood • SCs • Health and Social Care • Education 5
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  • Vast majorityof co-operatives are small (0-9 empl.) but large (50-249 and 250+) add most to employment share • Relative to other firms, co-operatives proportionally employ – Fewer employees on a full time, and permanent contract – Fewer employees below 30 years old – More female employees • Employment patterns may correlate with – Sector specificities, economic environment of activity, more flexible work arrangements Further insights 6
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  0 20 40 60 80 100 120 140 160 180 200 2012 2013 20142015 2016 2017 Others CEs SCs 0 20 40 60 80 100 120 140 160 180 200 2012 2013 2014 2015 2016 2017 CEs 25th quantile 75th quantile 0 20 40 60 80 100 120 140 160 180 200 2012 2013 2014 2015 2016 2017 SCs 25th quantile 75th quantile Co-operatives productivity relative to other firms 100 = CEs + SCs in 2017 Substantial gab on average between co- operative enterprises and other firms. Top 25% CEs outperform the average of other firms Examples of good performers: Umbria/Tuscany/Emilia- Romagna/ Wholesale and Retail Trade/Construction (CEs) / Education (SCs) 7
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  Co-operative enterprises productivityvaries considerably across sectors 0 50 100 150 200 250 300 350 Wholesale and Retail Trade Agrifood Construction KIBS Industry Education Other Services to Persons Other Services to Enterprises Health and Social Care Transport MFP (ORBIS) LP (INPS) Productivity in Wholesale and Retail Trade is high, aided by the presence of some large CEs. Agrifood also very competitive SCs most competitive in Education and Health and Social Care, but very different from other firms Large employment shares: CEs SCs 8
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  Average productivity showsgeographical pattern Strong north-south pattern Suggesting co-operative productivity follows broader patterns of private sector In only three regions, CEs are more productive than other firms: Umbria, Tuscany and Emilia-Romagna 9
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  Regional factors ofco-operative productivity (CEs) Co-operative productivity Local institutional quality Employment in R&D sectors FDIs Density Unemployment rate Agriculture EU cohesion funds NB. No causal mechanisms In common with other firms Potentially co- operative specific 10 Factors not linked: Entrepreneurship Demographics
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  Digital tools adoptionof co-operatives 0 10 20 30 40 50 60 70 80 Digital signature WEB site Social channels Cloud development and other tools for remote work Company intranet No ICT tool used E-commerce site to sell online Programming and Planning Systems (ERP) Industry 4.0 Intercompany intranet Other 2020 2017-2019 Digital tools are mostly limited to easily obtainable or free services Newest technologies are underused 11
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  What are themain barriers to technology adoption? 0 10 20 30 40 50 60 Cost of software and equipment Legacy issues Lack of skills Cost of information and communication services Lack of access to the high-speed network Other • High costs • Low absorptive capacity • Inadequate infrastructure 12
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  0 5 10 15 20 25 Percentage of co-operativesemployment in region Percentage of co-operatives employment of national 56 The cooperative sector in Spain: Basque country Basque country presents a unique case in Europe Other nationally important regions: Andalusia, Valencia and Catalonia Key national statistics 20 000 CEs (57 000 in Italy) ~2% of total employment (6.6% in Italy)… but large regional division 56% of all Spanish employment in cooperatives are in the Basque country, 23% of regional employment
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  How do Spanishco-operatives perform comparatively 0 50 100 150 200 250 300 Wholesale and Retail Trade Construction Other Services to Enterprises Education Agrifood Other Services to Persons Transport Industry KIBS Health and Social Care Italy Basque Country Rest of Spain Each group compared against other firms in their own territories Basque co-operatives are competitive across sectors Italian and other Spanish follow largely similar patterns, lagging behind other firms
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  15 Policy recommendations Data Expanding theevidence base on co-operatives and their key performance indicators, including productivity Awareness Further action to raise public awareness of the economic and social value of co-operatives and how enhanced productivity could amplify their impact Governance Fostering co-operation between relevant institutions and multi- stakeholder dialogue to prepare the ground for targeted policies Instruments Devising fit-for-purpose policy tools to make co-operatives more resilient and productive
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  Thank you OECD TrentoCentre for Local Development Centre for Entrepreneurship, SMEs, Regions and Cities
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  Kick-off Analysis DraftingReview Launch 22 Timeline and structure July 2020 Summer 2020 Fall 2020 In progress 30/03/2021 • Chapter 1: Conceptual framework • Chapter 2: Background information on co-operative concentration and employment • Chapter 3: Exploring spatial productivity in Italian co-operatives • Chapter 4: Comparative analysis with Spain • Chapter 5: Policy recommendations