Vol. 15 No. 3 (2026)
Full Research Articles

The role of Biodistricts in enhancing farms’ labour productivity: a Post-Keynesian analysis

Chiara Grazini
Economics, engineering, society, business organization Department, University of Tuscia, Viterbo, Italy
Giulio Guarini
Economics, engineering, society, business organization Department, University of Tuscia, Viterbo, Italy
Alberto Sturla
Council for agricultural research and Economics, Centre for policies and bioeconomy (CREA PB), Italy

Published 2026-09-08

Keywords

  • Biodistricts,
  • labour productivity,
  • external economies of scale,
  • local sustainable development

How to Cite

Grazini, C., Guarini, G., & Sturla, A. (2026). The role of Biodistricts in enhancing farms’ labour productivity: a Post-Keynesian analysis. Bio-Based and Applied Economics, 15(3), 29–41. https://doi.org/10.36253/bae-18332

Abstract

Biodistricts (BDs) leverage the “significant local presence” of organic farming and its supply chain to reach farmers’ economic and environmental viability. Despite growing policy recognition 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, this paper explores the BDs’ impact on farm labour productivity growth, capturing innovation processes and competitiveness. Results suggest BD membership significantly enhances labour productivity growth, highlighting the role of territorial specialisation and collaborative networks. These benefits extend beyond organic farms, as the district’s “industrial atmosphere” facilitates broader knowledge spillovers. Findings call for policies to strengthen social capital and promote sustainable farming practices, leveraging BDs as a strategy for enhancing farms’ labour productivity and sustainability through agglomeration externalities, whereby the farms’ spatial concentration facilitates knowledge sharing, joint resource use, and coordinated practice.

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.
  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.
  3. Ball, V. E., Färe, R., Grosskopf, S., & Margaritis, D. (2015). The role of energy productivity in US agriculture. Energy Economics, 49, 460–471.
  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.
  5. Becattini, G. (1991). Italian industrial districts: problems and perspectives. International Studies of Management & Organization, 21(1), 83–90.
  6. Becattini, G. (2017). The Marshallian industrial district as a socio-economic notion. Revue d’économie Industrielle, 157, 13–32.
  7. 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.
  8. Bellandi, M., & Caloffi, A. (2008). District internationalisation and trans-local development. Entrepreneurship and Regional Development, 20(6), 517–532.
  9. Bellandi, M., & De Propris, L. (2017). New forms of industrial districts. Economia e Politica Industriale, 44(4), 411–427.
  10. 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.
  11. Blecker, R. A., & Setterfield, M. (2019). Heterodox Macroeconomics: Models of Demand, Distribution and Growth. Edward Elgar Pub.
  12. Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143.
  13. 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.
  14. 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.
  15. Carbone, A. (2017). Food supply chains: coordination governance and other shaping forces. Agricultural and Food Economics, 5(1), 3.
  16. Cavallo, A., & Marino, D. (2014). L’analisi della dimensione territoriale dell’agricoltura: una proposta di lettura. Scienze Del Territorio, 2, 159–178.
  17. 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.
  18. 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.
  19. 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.
  20. 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.
  21. Donati, L., Stefani, G., & Bellandi, M. (2023). The evolutionary emergence of quintuple helix coalitions: A case study of place-based sustainability transition. Triple Helix, 10(1), 125–155.
  22. Duarte, L. A. P., Méndez, M. R., & Muñoz-Rojas, J. (2025). Territorial embeddedness of sustainable agri-food systems: A systematic review. Agroecology and Sustainable Food Systems, 49(6), 948–988.
  23. Fabrizi, A., Guarini, G., & Meliciani, V. (2018). Green patents, regulatory policies and research network policies. Research Policy, 47(6), 1018–1031.
  24. Favilli, E., Rossi, A., & Brunori, G. (2015). Food networks: collective action and local development. The role of organic farming as boundary object. Organic Agriculture, 5, 235–243. https://doi.org/10.1007/s13165-015-0118-2
  25. Foster, A. D., & Rosenzweig, M. R. (1995). Learning by doing and learning from others: Human capital and technical change in agriculture. Journal of Political Economy, 103(6), 1176–1209.
  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.
  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).
  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.
  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.
  31. 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).
  32. 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.
  33. Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481–510.
  34. 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.
  35. Guarini, G. (2015). Complementarity between environmental efficiency and labour productivity in a cumulative growth process. PSL Quarterly Review, 68(272).
  36. Gustavsson, R. (2003). Industrial growth and dynamic externalities: the case of Sweden. Journal of Economic Integration, 607–625.
  37. Hailu, G., & James Deaton, B. (2016). Agglomeration effects in Ontario’s dairy farming. American Journal of Agricultural Economics, 98(4), 1055–1073.
  38. 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.
  39. Helfand, S. M., & Taylor, M. P. H. (2021). The inverse relationship between farm size and productivity: Refocusing the debate. Food Policy, 99, 101977.
  40. Kaldor, N. (1961). Capital accumulation and economic growth. The Theory of Capital: Proceedings of a Conference Held by the International Economic Association, 177–222.
  41. 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.
  42. 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.
  43. 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.
  44. 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.
  45. Marshall, A. (1920). Principles of economics. In Macmillan and Co.
  46. May, D., Arancibia, S., Behrendt, K., & Adams, J. (2019). Preventing young farmers from leaving the farm: Investigating the effectiveness of the young farmer payment using a behavioural approach. Land Use Policy, 82, 317–327.
  47. 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.
  48. Montresor, E. (2000). I sistemi locali di produzione agroalimentare. In L’agricoltura tra locale e globale. Distretti e filiere (Vol. 2). CNEL.
  49. Mottet, A., Bicksler, A., Lucantoni, D., De Rosa, F., Scherf, B., Scopel, E., López-Ridaura, S., Gemmil-Herren, B., Bezner Kerr, R., & Sourisseau, J.-M. (2020). Assessing transitions to sustainable agricultural and food systems: a tool for agroecology performance evaluation (TAPE). Frontiers in Sustainable Food Systems, 4, 579154.
  50. 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.
  51. 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.
  52. 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.
  53. 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.
  54. Pomponi, T., Carillo, F., Henke, R., Sturla, A., Del Giudice, T., & Sorrentino, A. (2026). Biodistricts as social innovation: Territorial implications in Italy. Journal of Rural Studies, 121, 103926.
  55. Porter, M. E. (1990). The Competitive Advantage of Nation. The Free Press.
  56. Porter, M. E. (2000). Location, competition, and economic development: Local clusters in a global economy. Economic Development Quarterly, 14(1), 15–34.
  57. 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.
  58. 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.
  59. Rabellotti, R. (1995). Is there an “industrial district model”? Footwear districts in Italy and Mexico compared. World Development, 23(1), 29–41.
  60. Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86–136.
  61. RRN. (2019). L’agricoltura biologica per lo sviluppo territoriale: l’esperienza dei distretti biologici.
  62. Saenz, J., Aramburu, N., Alcalde-Heras, H., & Buenechea-Elberdin, M. (2024). Technical knowledge acquisition modes and environmental sustainability in Spanish organic farms. Journal of Rural Studies, 109, 103338.
  63. Sanz-Cañada, J., & Muchnik, J. (2016). Geographies of origin and proximity: Approaches to local agro-food systems. Culture and History Digital Journal, 5(1), 1–19.
  64. 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.
  65. Sciurano, J. P., Arfini, F., & Maccari, M. (2024). A methodological approach to upscale organic and agroecological–local agrifood systems: the case of the Pampa Organica Norte group in Argentina. Frontiers in Sustainable Food Systems, 8, 1304558.
  66. Setterfield, M. (2006). Thirlwall’s law and Palley’s pitfalls: a reconsideration. Growth and Economic Development: Essays in Honour of AP Thirlwall, 47–59.
  67. Sforzi, F. (2008). The industrial district: from Marshall to Becattini. Il Pensiero Economico Italiano, a. XVI, 2, 71–80.
  68. 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.
  69. Stotten, R., Bui, S., Pugliese, P., Schermer, M., & Lamine, C. (2017). Organic values-based supply chains as a tool for territorial development: a comparative analysis of three European organic regions. International Journal of Sociology of Agriculture and Food, 24(1).
  70. Stotten, R., & Froning, P. (2023). Territorial rural development strategies based on organic agriculture: the example of Valposchiavo, Switzerland. Frontiers in Sustainable Food Systems, 7, 1182993.
  71. 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.
  72. Sylos Labini, P. (2001). Underdevelopment: a strategy for reform. Cambridge University Press.
  73. Sylos Labini, P. (2006). Torniamo ai classici: produttività del lavoro, progresso tecnico e sviluppo economico. Laterza.
  74. Thirlwall, A. P. (1983). A plain man’s guide to Kaldor’s growth laws. Journal of Post Keynesian Economics, 5(3), 345–358.
  75. 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.
  76. Truant, E., Broccardo, L., & Zicari, A. (2019). Organic companies’ business models: emerging profiles in Italian bio-districts. British Food Journal, 121(9), 2067–2085.
  77. Viganò, L., & Sturla, A. (2013). La sostenibilità delle filiere biologiche: il caso di Varese Ligure. INEA: Rome, Italy, 317–341.
  78. Volpentesta, A. P., & Ammirato, S. (2013). Alternative agrifood networks in a regional area: a case study. International Journal of Computer Integrated Manufacturing, 26(1–2), 55–66.
  79. Wang, J., Sun, F., Lv, K., & Wang, L. (2022). Industrial agglomeration and firm energy intensity: how important is spatial proximity? Energy Economics, 112, 106155.
  80. Winter, S. G., Kaniovski, Y. M., & Dosi, G. (2000). Modeling industrial dynamics with innovative entrants. Structural Change and Economic Dynamics, 11(3), 255–293.
  81. Wu, J., Ge, Z., Han, S., Xing, L., Zhu, M., Zhang, J., & Liu, J. (2020). Impacts of agricultural industrial agglomeration on China’s agricultural energy efficiency: A spatial econometrics analysis. Journal of Cleaner Production, 260, 121011.
  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.