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The location of R&D in the Netherlands: trends, determinants and policy

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  • Maarten Cornet
  • Marieke Rensman
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    Abstract

    Many factors determine the location of business R&D projects, the most important being history, the supply of R&D labour, and the quality of the public knowledge infrastructure (including the science-industry knowledge transfer). The set of R&D locations in the Netherlands changes little over time. But two things do change regularly: the size of the R&D activities at a particular site and the name and nationality of the owner of an R&D site. The Netherlands takes an average or higher position in a ranking of OECD countries according to attractiveness to the location of business R&D. Since domestic R&D is an important engine for domestic economic growth and since the market fails to provide optimal incentives for R&D, there is scope for government policy that improves upon the R&D location climate. Yet, this policy rationale does not necessarily imply that R&D policy initiatives are always effective and efficient: elasticities and social (opportunity) costs should be taken into account.

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    Bibliographic Info

    Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Document with number 14.

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    Date of creation: Nov 2001
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    Handle: RePEc:cpb:docmnt:14

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    1. Barrell, Ray & Pain, Nigel, 1997. "Foreign Direct Investment, Technological Change, and Economic Growth within Europe," Economic Journal, Royal Economic Society, vol. 107(445), pages 1770-86, November.
    2. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-40, June.
    3. Beugelsdijk, S. & Cornet, M., 2001. "How far do They Reach? The Localization of Industrial and Academic Knowledge Spillovers in the Netherlands," Discussion Paper 2001-47, Tilburg University, Center for Economic Research.
    4. Vincenzo Atella & Beniamino Quintieri, 2001. "Do R&D expenditures really matter for TFP?," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1385-1389.
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