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Determinants of Manufacturing-R&D Co-location

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Author Info

  • Ketokivi, Mikko
  • Ali-Yrkkö, Jyrki

Abstract

The phenomenon of physical R&D-manufacturing co-location is interesting, because researchers have made very different observations regarding its prevalence. In some populations co-location of the two functions seems to be the norm; in others, an exception. However, we still do not have an explicit explanatory theory of co-location. In this paper, we look the reasons why manufacturing and R&D may have to be physically co-located. In a sample of 241 Finnish industrial firms, we find that the need for co-location varies drastically from company to company. We further find that product complexity, process complexity and industry clockspeed have an effect on co-location need.

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1082.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:rif:dpaper:1082

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Related research

Keywords: business location decisions; co-location; research and development; manufacturing; contingency theory;

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Cited by:
  1. Baier , Elisabeth & Rammer , Christian & Schubert , Torben, 2013. "The Impact of Innovation Off-shoring on Organizational Adaptability," CIRCLE Electronic Working Papers 2013/44, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

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