Determinants of the Internationalization of Regions: The Role and Effectiveness of Public Policy Measures

This paper assesses the role of public policy measures on outward internationalization of regions. By including financial and non-financial incentives among the determinants of the international competitiveness of regions, it is found that the former are important to enhance their active internationalization, but that variables related to the knowledge and competence base of regions are even more so. Financial incentives related to equity participation as well as non-financial incentives related to the provision of information come out highly significant in stimulating outward internationalization. The empirical analysis is conducted for the twenty Italian NUTS-2 regions over the period 2003–2008