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Determinants of Manufacturing-R&D Co-location

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Author Info
Mikko Ketokivi
Jyrki Ali-Yrkkö

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Abstract

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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Publisher 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: 30 Mar 2007
Date of revision:
Handle: RePEc:rif:dpaper:1082

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Related research
Keywords: business location decisions; co-location; R&D; manufacturing; contingency theory;

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Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
L6 - Industrial Organization - - Industry Studies: Manufacturing
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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  1. Sarianna M. Lundan, 2007. "The Home Country Effects of Internationalisation," Discussion Papers 1100, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Petri Böckerman & Edvard Johansson & Satu Helakorpi & Antti Uutela, 2007. "Economic Inequality and Health: Looking Beyond Aggregate Indicators," Discussion Papers 1104, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  3. Mikko Mäkinen, 2007. "Do Stock Opiton Schemes Affect Technical Inefficiency? Evidence from Finland," Discussion Papers 1085, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Antti Lönnqvist, 2007. "Intellectual Capital and Productivity: Identification and the Measurement of the Relationship at Company-level," Discussion Papers 1108, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Paavo Suni, 2007. "Oil Prices and the Russian Economy. Some Simulation Studies with NiGEM," Discussion Papers 1088, The Research Institute of the Finnish Economy. [Downloadable!]
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