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R&D Investments and the Spatial Dimension: Evidence from Firm Level Data

  • Bertinelli, Luisito

    (CREA, U Luxembourg)

  • Nicolini, Rosella

    (Instituto de Analisis Economico-CSIC, U Autonoma de Barcelona)

This paper proposes to investigate the effect of spillovers on firms' R&D investment decisions. We develop an analysis merging the geographer's toolbox with standard econometric techniques. For a chosen sample of sectors, we test the existence of positive spatial autocorrelation at the level of R&D investments. We provide results on how far the local environment may influence the firms' investment decisions, hence to what extent localization economies matter for agglomeration. Data confirm that the proximity to other firms investing in R&D may produce positive externalities. Finally, the diversity versus specialization debate is tackled.

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File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/110/61
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Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 35 (2005)
Issue (Month): 2 ()
Pages: 206-30

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Handle: RePEc:rre:publsh:v:35:y:2005:i:2:p:206-30
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  1. Antonio Ciccone, 1998. "Agglomeration-effects in Europe," Economics Working Papers 499, Department of Economics and Business, Universitat Pompeu Fabra, revised Aug 1999.
  2. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
  3. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," CEPR Discussion Papers 1974, C.E.P.R. Discussion Papers.
  4. 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.
  5. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
  6. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May.
  7. Luisito Bertinelli & Rosella Nicolini, 2002. "La R&D au niveau des entreprises belges: une approche spatiale," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 45(4), pages 187-216.
  8. Bernard Fingleton, 2003. "Externalities, Economic Geography, And Spatial Econometrics: Conceptual And Modeling Developments," International Regional Science Review, SAGE Publishing, vol. 26(2), pages 197-207, April.
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