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University research and the location of business R&D

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  • Laura Abramovsky

    ()
    (Institute for Fiscal Studies)

  • Rupert Harrison
  • Helen Simpson

    ()
    (Institute for Fiscal Studies and CMPO, Bristol)

Abstract

We investigate the relationship between the location of private sector R&D labs and university research departments in Great Britain. We combine establishment-level data on R&D activity with information on levels and changes in research quality from the Research Assessment Exercise. The strongest evidence for co-location is for pharmaceuticals R&D, which is disproportionately located near to relevant university research, particularly 5 or 5* rated chemistry departments. This relationship is stronger for foreign-owned labs, consistent with multinationals sourcing technology internationally. We also find some evidence for co-location with lower rated research departments in industries such as machinery and communications equipment.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W07/02.

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Length: 45 pp.
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:ifs:ifsewp:07/02

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  1. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
  2. Stuart S. Rosenthal & William C. Strange, 1999. "Geography, Industrial Organization, and Agglomeration," Center for Policy Research Working Papers 14, Center for Policy Research, Maxwell School, Syracuse University.
  3. 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.
  4. Karlsson, Charlie & Andersson, Martin, 2005. "The Location of Industry R&D and the Location of University R&D - How are They related?," Working Paper Series in Economics and Institutions of Innovation 38, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  5. Dietmar Harhoff, 1999. "Firm Formation And Regional Spillovers - Evidence From Germany," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 27-55.
  6. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February.
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