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The Location of Industry R&D and the Location of University R&D - How are They related?

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Author Info
Karlsson, Charlie () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
Andersson, Martin () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

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Abstract

During the years, a large number of formal studies have presented evidences of a positive impact of university R&D on firm performance in general and on the location of industrial R&D, in particular. The question is does it also work the other way around? Does industrial R&D function as an attractor for university R&D? What are the behavioural relationships between industrial R&D and university R&D and vice versa? The fact that knowledge flows seem to be spatially bounded implies that proximity matters for the relationships between industrial and university R&D. We argue that spatial proximity should be measured using accessibility measures. Furthermore, accessibility measures can be used to model interaction opportunities at different spatial scales: local, intra-regional and inter-regional. Against this background, the purpose of this paper is to analyse the locational relationship between industry R&D and university R&D in Sweden using a simultaneous equation approach. Our results indicate that the location of industrial R&D is quite sensitive to the location of university R&D, and that the location of university R&D is sensitive to the location of industrial R&D. However, the latter result is achieved only when we take away one outlier in the data.

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Publisher Info
Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 38.

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Length: 29 pages
Date of creation: 18 Oct 2005
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Handle: RePEc:hhs:cesisp:0038

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Related research
Keywords: R&D; Industry; University; Accessibility; Location;

Find related papers by JEL classification:
C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
I23 - Health, Education, and Welfare - - Education - - - Higher Education Research Institutions
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General

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  1. Laura Abramovsky & Rupert Harrison & Helen Simpson, 2007. "University research and the location of business R&D," IFS Working Papers W07/02, Institute for Fiscal Studies. [Downloadable!]
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