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prof. Elenora Pierrucci - Roma Tre University

Marco Sforza - Roma Tre University

The Digital Transition and the EU Cohesion Policy: Firm-level evidence

Abstract

This paper examines the impact of EU Cohesion Policy on the digital transformation of firms, a dimension that remains underexplored despite increasing policy investments in digital infrastructure and innovation. Focusing on Italy during the 2014–2020 programming period, we identify digital-related projects and link them to firm-level changes in technology adoption. We construct a unique dataset by merging project-level information from OpenCoesione with firm-level data from ISTAT \"Survey on ICT Usage in Enterprises” and financial data from Aida-BvD. Our empirical strategy relies on a staggered Difference-in-Differences estimator to identify the causal effects of the policy. We further examine treatment heterogeneity by combining the causal design with a regression tree algorithm, which allows us to identify firm- and policy-specific characteristics shaping policy effectiveness. The results indicate that digital-related Cohesion projects significantly enhance firms’ digitalisation, with effects emerging after two years and intensifying over time. Heterogeneous effects show that the policy impact is stronger for larger, more productive, and younger firms. By documenting both average and heterogeneous treatment effects, the paper contributes to the literature on the evaluation of EU Cohesion Policy and to the broader debate on the role of public policy in fostering an inclusive digital transition."

Seminario Dottorale – Dottorato di Ricerca in Economia e Politiche dei Mercati e delle Imprese

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