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Unbundling R&D and Manufacturing: Postindustrial Myth or Economic Reality?

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  • Mikko Ketokivi
  • Jyrki Ali-Yrkkö

Abstract

Understanding determinants of business location decisions is important from the point of view of economic policy. While the determinants of manufacturing and R&D location have been extensively covered in the literature, in this article we examine a largely neglected question: Under what conditions do manufacturing and R&D have to be physically colocated, that is, when is unbundling the two impossible? In a sample of 241 Finnish industrial firms, we find that unbundling R&D and manufacturing is possible for some companies but indeed a postindustrial myth of sorts for many others. The need for colocation correlates with knowledge intensity of activities: product complexity, process complexity, and industry rate of change, but interestingly enough, not with the size of the firm's R&D budget. Copyright 2009 by The Policy Studies Organization.

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Bibliographic Info

Article provided by Policy Studies Organization in its journal Review of Policy Research.

Volume (Year): 26 (2009)
Issue (Month): 1-2 (01)
Pages: 35-54

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Handle: RePEc:bla:revpol:v:26:y:2009:i:1-2:p:35-54

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Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1541-1338
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Cited by:
  1. Moncada-Paternò-Castello, Pietro & Vivarelli, Marco & Voigt, Peter, 2011. "Drivers and Impacts in the Globalization of Corporate R&D: An Introduction Based on the European Experience," IZA Discussion Papers 5582, Institute for the Study of Labor (IZA).
  2. Isabel Tecu, 2013. "The Location of Industrial Innovation: Does Manufacturing Matter?," Working Papers 13-09, Center for Economic Studies, U.S. Census Bureau.
  3. Pietro Moncada-Paterno-Castello & Peter Voigt & Marco Vivarelli, 2011. "Evolution of Globalised business R&D: Features, drivers, impacts," JRC-IPTS Working Papers on Corporate R&D and Innovation 2011-02, Institute of Prospective Technological Studies, Joint Research Centre.
  4. Bernhard Dachs & Bernd Ebersberger, 2013. "The Effects of Production Offshoring on R&D and Innovation in the Home Country," FIW Research Reports series V-001, FIW.
  5. Liu, Ju & Chaminade, Cristina, 2014. "Exploring the interplay, differences, and commonalities between global production networks and global innovation networks of two multinational companies," CIRCLE Electronic Working Papers 2014/7, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  6. Aittomäki, Akseli & Martikainen, Pekka & Laaksonen, Mikko & Lahelma, Eero & Rahkonen, Ossi, 2012. "Household economic resources, labour-market advantage and health problems – A study on causal relationships using prospective register data," Social Science & Medicine, Elsevier, vol. 75(7), pages 1303-1310.

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