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Location and R&D alliances in the European ICT industry

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Author Info
Rajneesh Narula () (Department of Economics, University of Reading Business School)
Grazia D. Santangelo () (Facoltà di Scienze Politiche, Università degli Studi di Catania)

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Abstract

This paper shows empirically that in an intra-industry oligopolistic scenario the location of a firm’s innovative activities plays an important role in determining its partner selection in R&D alliances. Such a role is mainly attributed to a strategic use of R&D alliances as a means to limit knowledge flows and protect competences, rather than to promote knowledge flows. By drawing on a novel dataset matching alliances and patent data for the European ICT industry, the econometric analysis shows that partners’ prior co-location (at both national and sub-national regional level), previous ties and technological overlap matter in the choice of partner, while common nationality has a negative impact on alliance formation.

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Publisher Info
Paper provided by Henley Business School, Reading University in its series Economics & Management Discussion Papers with number em-dp2007-43.

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Length: 39 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:rdg:emxxdp:em-dp2007-43

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Related research
Keywords: Alliances; R&D location; strategy; co-location; knowledge flows;

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Find related papers by JEL classification:
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location

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