Just Accepted Manuscripts
Full Research Articles

The role of Biodistricts in enhancing farms’ labour productivity

pdf accepted
suppl mat
  • Chiara Grazini,
  • Giulio Guarini,
  • Alberto Sturla
Chiara Grazini
University of Tuscia
Giulio Guarini
University of Tuscia
Alberto Sturla
Council for agricultural research and Economics, Centre for policies and bioeconomy
DOI: https://doi.org/10.36253/bae-18332

Published 2026-09-08

Keywords

  • Biodistricts,
  • labour productivity,
  • external economies of scale,
  • knowledge spillovers

How to Cite

Grazini, C., Guarini, G., & Sturla, A. (2026). The role of Biodistricts in enhancing farms’ labour productivity. Bio-Based and Applied Economics. https://doi.org/10.36253/bae-18332

Copyright (c) 2026 Chiara Grazini, Giulio Guarini, Alberto Sturla

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC

Abstract

Biodistricts (BDs) leverage the “significant presence” at the local level of organic farming and its supply chain to reach greater economic and environmental viability for farmers. Despite their increasing recognition by policymakers and inclusion in European strategies, empirical evidence of their effectiveness on farms’ competitiveness remains limited. Using Italian FADN data and a post-Keynesian econometric model with dynamic panel data and GMM estimators, this paper explores how BDs impact farm labour productivity growth, which captures both innovation processes and competitiveness. Results suggest being in a BD significantly enhances labour productivity growth compared to outside, highlighting the role of territorial specialisation and collaborative networks. These benefits extend beyond organic farms, suggesting that the district's “industrial atmosphere” facilitates broader knowledge spillovers. Findings call for policies to strengthen social capital and promote farming’s sustainable practices, leveraging the BD as a win-win strategy in enhancing both farms’ labour productivity and sustainability through agglomeration externalities.

pdf accepted
suppl mat

References

  1. Antenucci, F., Deleidi, M., & Paternesi Meloni, W. (2020). Kaldor 3.0: An empirical investigation of the Verdoorn-augmented technical progress function. Review of Political Economy, 32(1), 49–76. https://doi.org/10.1080/09538259.2020.1744936
  2. Assiri, M., Barone, V., Silvestri, F., & Tassinari, M. (2021). Planning sustainable development of local productive systems: A methodological approach for the analytical identification of Ecoregions. Journal of Cleaner Production, 287, 125006. https://doi.org/10.1016/j.jclepro.2020.125006
  3. Ball, V. E., Färe, R., Grosskopf, S., & Margaritis, D. (2015). The role of energy productivity in US agriculture. Energy Economics, 49, 460–471. https://doi.org/10.1016/j.eneco.2015.03.006
  4. Barbieri, N., Marzucchi, A., & Rizzo, U. (2020). Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones? Research Policy, 49(2), 103901. https://doi.org/10.1016/j.respol.2019.103901
  5. Becattini, G. (1991). Italian industrial districts: problems and perspectives. International Studies of Management & Organization, 21(1), 83–90. doi: 10.1080/00208825.1991.11656551
  6. Becattini, G. (2000). Distrettualità fra industria e agricoltura. QA Rivista Dell’Associazione Rossi-Doria, 2000/2.
  7. Becattini, G. (2017). The Marshallian industrial district as a socio-economic notion. Revue d’économie Industrielle, 157, 13–32. https://doi.org/10.4000/rei.6507
  8. Becattini, G., & Coltorti, F. (2004). Aree di grande impresa ed aree distrettuali nello sviluppo post-bellico dell’Italia: un’esplorazione preliminare. Rivista Italiana Degli Economisti, 9(1), 61–102.
  9. Bellandi, M., & Caloffi, A. (2008). District internationalisation and trans-local development. Entrepreneurship and Regional Development, 20(6), 517–532. https://doi.org/10.1080/08985620802462108
  10. Bellandi, M., & De Propris, L. (2017). New forms of industrial districts. Economia e Politica Industriale, 44(4), 411–427. https://doi.org/10.1007/s40812-017-0082-9
  11. Belliggiano, A., Sturla, A., Vassallo, M., & Viganò, L. (2020). Neo-endogenous rural development in favor of organic farming: Two case studies from Italian fragile areas. European Countryside, 12(1), 1–29. https://doi.org/10.2478/euco-2020-0001
  12. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)00009-8
  13. Cainelli, G., & De Liso, N. (2005). Innovation in industrial districts: Evidence from Italy. Industry and Innovation, 12(3), 383–398. https://doi.org/10.1080/13662710500195991
  14. Canwat, V., & Onakuse, S. (2022). Organic agriculture: A fountain of alternative innovations for social, economic, and environmental challenges of conventional agriculture in a developing country context. Cleaner and Circular Bioeconomy, 3, 100025. DOI: 10.1016/j.clcb.2022.100025
  15. Carayannis, E. G., & Campbell, D. F. J. (2010). Triple Helix, Quadruple Helix and Quintuple Helix and how do knowledge, innovation and the environment relate to each other?: a proposed framework for a trans-disciplinary analysis of sustainable development and social ecology. International Journal of Social Ecology and Sustainable Development (IJSESD), 1(1), 41–69. DOI: 10.4018/jsesd.2010010105
  16. Carayannis, E. G., Campbell, D. F. J., & Grigoroudis, E. (2022). Helix trilogy: The triple, quadruple, and quintuple innovation helices from a theory, policy, and practice set of perspectives. Journal of the Knowledge Economy, 13(3), 2272–2301. https://doi.org/10.1007/s13132-021-00813-x
  17. Carbone, A. (2017). Food supply chains: coordination governance and other shaping forces. Agricultural and Food Economics, 5(1), 3. https://doi.org/10.1186/s40100-017-0071-3
  18. Cavallo, A., & Marino, D. (2014). L’analisi della dimensione territoriale dell’agricoltura: una proposta di lettura. Scienze Del Territorio, 2, 159–178.
  19. Chaminade, C., & Randelli, F. (2020). The role of territorially embedded innovation ecosystems accelerating sustainability transformations: a case study of the transformation to organic wine production in Tuscany (Italy). Sustainability, 12(11), 4621. https://doi.org/10.3390/su12114621
  20. David, P. A., & Rosenbloom, J. L. (1990). Marshallian factor market externalities and the dynamics of industrial localization. Journal of Urban Economics, 28(3), 349–370. https://doi.org/10.1016/0094-1190(90)90033-J
  21. de Felice, A., Martucci, I., & Scaglioni, C. (2019). «Relations at Work» in a Modern Industrial District: A Pathway to Innovation. L’industria, 40(3), 437–462. DOI: 10.1430/94756
  22. De Roest, K., Ferrari, P., & Knickel, K. (2018). Specialisation and economies of scale or diversification and economies of scope? Assessing different agricultural development pathways. Journal of Rural Studies, 59, 222–231. https://doi.org/10.1016/j.jrurstud.2017.04.013
  23. Deolalikar, A. B. (1981). The inverse relationship between productivity and farm size: a test using regional data from India. American Journal of Agricultural Economics, 63(2), 275–279. https://doi.org/10.2307/1239565
  24. Fabrizi, A., Guarini, G., & Meliciani, V. (2018). Green patents, regulatory policies and research network policies. Research Policy, 47(6), 1018–1031. https://doi.org/10.1016/j.respol.2018.03.005
  25. Fao. (2019). Scaling up agroecology to achieve the sustainable development goals. Proceedings of the 2nd FAO International Symposium on Agroecology. ISBN 978-92-5-131332-9
  26. Fritsch, M., & Schwirten, C. (1999). Enterprise-university co-operation and the role of public research institutions in regional innovation systems. Industry and Innovation, 6(1), 69–83. https://doi.org/10.1080/13662719900000005
  27. Garofalo, G., & Guarini, G. (2018). Reti D’Impresa Ambientali E Sviluppo Eco-Sostenibile a Livello Regionale (Environmental Business Networks and Eco-Sustainable Development at Regional Level). Moneta e Credito, 71(281). http://dx.doi.org/10.2139/ssrn.3175837
  28. Garofalo, G., Guarini, G., & Chiaccherini, C. (2020). LE PICCOLE E MEDIE IMPRESE ITALIANE NELLA RIFLESSIONE DI FRANCESCO PARRILLO E NEL CONTESTO DELL’ECONOMIA ITALIANA DEL III MILLENNIO: UN PERCORSO DI RICERCA SUL CAPITALISMO ITALIANO CON UNA VERIFICA EMPIRICA. RIVISTA BANCARIA.
  29. Garrone, M., Emmers, D., Lee, H., Olper, A., & Swinnen, J. (2019). Subsidies and agricultural productivity in the EU. Agricultural Economics, 50(6), 803–817. https://doi.org/10.1111/agec.12526
  30. Ghisetti, C., Marzucchi, A., & Montresor, S. (2015). The open eco-innovation mode. An empirical investigation of eleven European countries. Research Policy, 44(5), 1080–1093. https://doi.org/10.1016/j.respol.2014.12.001
  31. Gomes, A. D. P. (2025). Regional economic growth and post-Keynesian economics: unfit for purpose? Journal of Post Keynesian Economics, 1–34. https://doi.org/10.1080/01603477.2024.2446863
  32. Goulas, A., & Papachatzis, A. (2024). YOUNG FARMERS, SMALL FARMS AND ENTREPRENEURSHIP UNDER THE NEW EUROPEAN UNION GREEN DEAL. ANNALS OF THE UNIVERSITY OF CRAIOVA, Biology, Horticulture, Food Products Processing Technology, Environmental Engineering, 29(65). https://doi.org/10.52846/bihpt.v29i65.144
  33. Graham, D. J., Melo, P. S., Jiwattanakulpaisarn, P., & Noland, R. B. (2010). Testing for causality between productivity and agglomeration economies. Journal of Regional Science, 50(5), 935–951. DOI: 10.1111/j.1467-9787.2010.00676.x
  34. Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481–510. https://www.jstor.org/stable/2780199
  35. Guareschi, M., Mancini, M. C., Lottici, C., & Arfini, F. (2023). Strategies for the valorization of sustainable productions through an organic district model. Agroecology and Sustainable Food Systems, 47(1), 100–125.
  36. Gustavsson, R. (2003). Industrial growth and dynamic externalities: the case of Sweden. Journal of Economic Integration, 607–625. doi:https://doi.org/10.11130/jei.2003.18.607
  37. Hailu, G., & James Deaton, B. (2016). Agglomeration effects in Ontario’s dairy farming. American Journal of Agricultural Economics, 98(4), 1055–1073. https://doi.org/10.1093/ajae/aaw041
  38. Hamilton, S. F., Richards, T. J., Shafran, A. P., & Vasilaky, K. N. (2022). Farm labor productivity and the impact of mechanization. American Journal of Agricultural Economics, 104(4), 1435–1459. DOI: 10.1111/ajae.12273
  39. He, C., & Zhu, S. (2009). Industrial agglomeration and labour productivity in transition: An empirical study of Chinese manufacturing industries. Post-Communist Economies, 21(1), 103–115. DOI: 10.1080/14631370802663711
  40. Hein, E., & Tarassow, A. (2010). Distribution, aggregate demand and productivity growth: theory and empirical results for six OECD countries based on a post-Kaleckian model. Cambridge Journal of Economics, 34(4), 727–754. https://doi.org/10.1093/cje/bep066
  41. Helfand, S. M., & Taylor, M. P. H. (2021). The inverse relationship between farm size and productivity: Refocusing the debate. Food Policy, 99, 101977. https://doi.org/10.1016/j.foodpol.2020.101977
  42. Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570–10575. https://doi.org/10.1073/pnas.090094310
  43. Horbach, J., Oltra, V., & Belin, J. (2013). Determinants and specificities of eco-innovations compared to other innovations—an econometric analysis for the French and German industry based on the community innovation survey. Industry and Innovation, 20(6), 523–543. https://doi.org/10.1080/13662716.2013.833375
  44. Kaldor, N. (1961). Capital accumulation and economic growth. The Theory of Capital: Proceedings of a Conference Held by the International Economic Association, 177–222.
  45. Kreft, C., Angst, M., Huber, R., & Finger, R. (2023). Farmers’ social networks and regional spillover effects in agricultural climate change mitigation. Climatic Change, 176(2), 8. https://doi.org/10.1007/s10584-023-03484-6
  46. Kristensen, D. K., Kjeldsen, C., & Thorsøe, M. H. (2016). Enabling sustainable agro-food futures: exploring fault lines and synergies between the integrated territorial paradigm, rural eco-economy and circular economy. Journal of Agricultural and Environmental Ethics, 29(5), 749–765. DOI: 10.1007/s10806-016-9632-9
  47. Lakner, S., von Cramon-Taubadel, S., & Brümmer, B. (2012). Technical efficiency of organic pasture farming in Germany: The role of location economics and of specific knowledge. Renewable Agriculture and Food Systems, 27(3), 228–241. https://doi.org/10.1017/S1742170511000330
  48. Mantino, F., & Vanni, F. (2018). The role of localized agri-food systems in the provision of environmental and social benefits in peripheral areas: Evidence from two case studies in Italy. Agriculture, 8(8), 120. https://doi.org/10.3390/agriculture8080120
  49. Marshall, A. (1920). 1920. Principles of economics. In Macmillan and Co.
  50. May, D., Arancibia, S., Behrendt, K., & Adams, J. (2019). Preventing young farmers from leaving the farm: Investigating the effectiveness of the young f armer payment using a behavioural approach. Land Use Policy, 82, 317–327. https://doi.org/10.1016/j.landusepol.2018.12.019
  51. Mazzocchi, C., Orsi, L., Bergamelli, C., & Sturla, A. (2021). Bio-districts and the territory: evidence from a regression approach. Aestimum, 79, 5–23. https://doi.org/10.36253/aestim-12163
  52. Mazzocchi, C., Orsi, L., Ferrazzi, G., & Corsi, S. (2020). The dimensions of agricultural diversification: a spatial analysis of Italian municipalities. Rural Sociology, 85(2), 316–345. DOI: 10.1111/ruso.12291
  53. Monarca, D. (2009). Progetto Biodistrict: Valorizzazione delle Produzioni da Agricoltura Biologica: Progetto Pilota per lo Sviluppo di Distretti Biologici ed Ecocompatibili. 2009.
  54. Montresor, E. (2000). I sistemi locali di produzione agroalimentare. In L’agricoltura tra locale e globale. Distretti e filiere (Vol. 2). CNEL.
  55. Moyo, C., Mishi, S., & Ncwadi, R. (2024). The determinants of labour productivity in the Eastern Cape Province: A sectoral and industry analysis. Development Southern Africa, 41(2), 371–387. https://doi.org/10.1080/0376835X.2024.2305150
  56. Muchnik, J., Requier-Desjardins, D., Sautier, D., & Touzard, J.-M. (2007). Introduction: les systèmes agroalimentaires localisés (SYAL). Économies et Sociétés. Systèmes Agroalimentaires (AG), 41(929), 1465–1484.
  57. Naruetharadhol, P., Srisathan, W. A., Gebsombut, N., & Ketkaew, C. (2021). Towards the open eco-innovation mode: A model of open innovation and green management practices. Cogent Business & Management, 8(1), 1945425. https://doi.org/10.1080/23311975.2021.1945425
  58. Oliveira, P. M., & Natário, M. M. (2016). Territorial innovation systems and strategies of collective efficiency: The case of Tagus Valley agro-food complex. European Journal of Innovation Management, 19(3), 362–382. DOI: 10.1108/EJIM-07-2014-0072
  59. Packer, G., & Zanasi, C. (2023). Comparing social sustainability assessment indicators and tools for bio-districts: building an analytical framework. Frontiers in Sustainable Food Systems, 7, 1229505. https://doi.org/10.3389/fsufs.2023.1229505
  60. Passaro, A., & Randelli, F. (2022a). Spaces of Governance for Sustainable Transformation of Local Food Systems: the Case of 8 biodistricts in Tuscany. DISEI, Università degli Studi di Firenze.
  61. Passaro, A., & Randelli, F. (2022b). Spaces of sustainable transformation at territorial level: an analysis of biodistricts and their role for agroecological transitions. Agroecology and Sustainable Food Systems, 46(8), 1198–1223. DOI: 10.1080/21683565.2022.2104421
  62. Porter, M. E. (1990). The Competitive Advantage of Nation. The Free Press.
  63. Porter, M. E. (1998). On Competition. Harvard Business School Press.
  64. Porter, M. E. (2000). Location, competition, and economic development: Local clusters in a global economy. Economic Development Quarterly, 14(1), 15–34.
  65. Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97–118. https://doi.org/10.1177/089124240001400105
  66. Pouder, R., & St. John, C. H. (1996). Hot spots and blind spots: Geographical clusters of firms and innovation. Academy of Management Review, 21(4), 1192–1225. DOI: 10.2307/259168
  67. Rabellotti, R. (1995). Is there an “industrial district model”? Footwear districts in Italy and Mexico compared. World Development, 23(1), 29–41. https://doi.org/10.1016/0305-750X(94)00103-6
  68. Rennings, K. (2000). Redefining innovation—eco-innovation research and the contribution from ecological economics. Ecological Economics, 32(2), 319–332. https://doi.org/10.1016/S0921-8009(99)00112-3
  69. Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136. https://doi.org/10.1177/1536867X0900900106
  70. Schmit, T. M., & Hall, J. S. (2013). Implications of agglomeration economies and market access for firm growth in food manufacturing. Agribusiness, 29(3), 306–324. https://doi.org/10.1002/agr.21336
  71. Sforzi, F. (2008). The industrial district: from Marshall to Becattini. Il Pensiero Economico Italiano, a. XVI, 2, 71–80. https://ssrn.com/abstract=2056189
  72. Stefanovic, L., & Agbolosoo-Mensah, O. A. (2023). Biodistricts as a tool to revitalize rural territories and communities: insights from the biodistrict Cilento. Frontiers in Sustainable Food Systems, 7, 1267985. https://doi.org/10.3389/fsufs.2023.1267985
  73. Sturla, A., Viganò, L., Vassallo, M., & Belliggiano, A. (2024). Mission,(self)-perception and role in localized food systems of Italian biodistricts: insights from a Delphi survey. Frontiers in Sustainable Food Systems, 8, 1433261. https://doi.org/10.3389/fsufs.2024.1433261
  74. Sylos Labini, P. (2006). Torniamo ai classici: produttività del lavoro, progresso tecnico e sviluppo economico. Laterza.
  75. Tallman, S., Jenkins, M., Henry, N., & Pinch, S. (2004). Knowledge, clusters, and competitive advantage. Academy of Management Review, 29(2), 258–271. https://doi.org/10.5465/amr.2004.12736089
  76. Thirlwall, A. P. (1983). A plain man’s guide to Kaldor’s growth laws. Journal of Post Keynesian Economics, 5(3), 345–358. https://www.jstor.org/stable/4537750
  77. TRIANTAFYLLIDIS, A. (2014). Local Governance through Organic Farming. The bio-district of the Vara Valley, a private/public partnership to assure vitality to a rural area.
  78. Tripathy, P., Jena, P. K., & Mishra, B. R. (2024). Systematic literature review and bibliometric analysis of energy efficiency. Renewable and Sustainable Energy Reviews, 200, 114583. DOI: 10.1016/j.rser.2024.114583
  79. Truant, E., Broccardo, L., & Zicari, A. (2019). Organic companies’ business models: emerging profiles in Italian bio-districts. British Food Journal, 121(9), 2067–2085. http://hdl.handle.net/2318/1711043
  80. Wang, J., Sun, F., Lv, K., & Wang, L. (2022). Industrial agglomeration and firm energy intensity: how important is spatial proximity? Energy Economics, 112, 106155. https://doi.org/10.1016/j.eneco.2022.106155
  81. Winter, S. G., Kaniovski, Y. M., & Dosi, G. (2000). Modeling industrial dynamics with innovative entrants. Structural Change and Economic Dynamics, 11(3), 255–293. https://doi.org/10.1016/S0954-349X(99)00010-7
  82. Zanasi, C., Basile, S., Paoletti, F., Pugliese, P., & Rota, C. (2020). Design of a Monitoring Tool for eco-regions. Frontiers in Sustainable Food Systems, 4, 536392. https://doi.org/10.3389/fsufs.2020.536392