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Does Location Matter for Firms' R&D Behaviour? Empirical Evidence for Danish Firms


  • Valdemar Smith
  • Anni Lene Broberg
  • Jesper Overgaard


In this paper, we analyse whether regional location matters for Danish firms' R&D performance. In accordance with KLEINKNECHT and POOT's, 1992, survey, we test the urban hierarchy hypothesis stating that firms in urban agglomerations are more likely to perform R&D than firms elsewhere. Using a micro dataset for Danish firms obtained by merging Danish R&D statistics with account data, the evidence of the influence of location on both the probability for undertaking R&D and R&D intensity is mixed, but basically not in favour of any urban hierarchy in Danish R&D. Other non-regional factors such as size of firm, sectoral dummies classified according to Pavitt's taxonomy, and the dummy controlling for ICT service industries are also estimated to have significant influence on firms' R&D behaviour. Furthermore, the age of a firm only affects its R&D intensity significantly. Cet article cherche a analyser si, oui ou non, la localisation regionale est importante pour le comportement des entreprises danoises quant a la recherche-developpement. Conformement a l'enquete de KLEINKNECHT et POOT, 1992, on met a l'epreuve l'hypothese des hierarchies urbaines qui affirme qu'il est plus probable que les entreprises implantees dans des agglomerations urbaines font de la recherche-developpement que les entreprises implantees ailleurs. On se sert d'une base de micro-donnees aupres des entreprises danoises, obtenue d'une reunion des statistiques sur la recherche-developpement au Danemark et des donnees comptabilisees. Il s'avere que les preuves quant a l'impact de la localisation sur a la fois la probabilite de faire de la recherche-developpement et l'intensite de la recherche-developpement s'averent mitigees. En principe, elles ne viennent pas a l'appui de l'affirmation d'une hierarchisation urbaine de la recherche-developpement des entreprises danoises. On estime aussi que d'autres facteurs non-regionaux, tels la taille des entreprises, les variables fictives sectorielles classees selon la taxonomie de Pavitt, et la variable fictive qui tient compte des industries de service de la TIC, ont eu un impact non-negligeable sur le comportement des entreprises quant a la recherche-developpement. Qui plus est, seul l'age de l'entreprise influe de facon importante sur l'intensite de la recherche-developpement. Dieser Aufsatz untersucht, ob Standort in einer bestimmten Region fur Leistungen danischer Firmen in Forschung und Entwicklung von Bedeutung ist. In Ubereinstimmung mit der Untersuchung von KLEINKNECHT und POOT, 1992, wird die Hypothese der Stadthierarchie gepruft, die behauptet, Firmen in stadtischen Ballungsgebieten haben auf dem Gebiet der Forschung und Entwicklung mehr Erfolg zu verzeichnen als anderorts. Die Verwendung einer Mikrodatenserie fur danische Firmen, die durch Verschmelzung danischer Statistiken fur Forschung und Entwicklung mit Buchhaltungsdaten erarbeitet wurden, zeigt, dass der Einfluss des Standorts sich sowohl auf die Wahrscheinlichkeit der Inangriffnahme wie auch auf die Intensivitat von Forschung und Entwicklung als unterschiedlich erweist, doch im Grunde keine stadtische Hierarchie in danischer Forschung und Entwicklung begunstigt. Es wurde auch von anderen, nicht regional bestimmten Faktoren, wie Firmengrosse, sektoralen, Pavitts Taxonomie gemass klassifizierten Vergleichen, und der Vergleichskontrolle von ICT Dienstleistungsindustrien angenommen, dass sie einen signifikanten Einfluss auf das Forschungs- und Entwicklungsverhalten von Firmen ausuben. Dem Alter einer Firma jedoch kommt signifikanter Einfluss nur bei der Intensitat von Forschung und Entwicklung zu.

Suggested Citation

  • Valdemar Smith & Anni Lene Broberg & Jesper Overgaard, 2002. "Does Location Matter for Firms' R&D Behaviour? Empirical Evidence for Danish Firms," Regional Studies, Taylor & Francis Journals, vol. 36(8), pages 825-832.
  • Handle: RePEc:taf:regstd:v:36:y:2002:i:8:p:825-832
    DOI: 10.1080/0034340022000012270

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    References listed on IDEAS

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    7. Mogens Dilling-Hansen & Tor Eriksson & Erik Strøjer Madsen & Valdemar Smith, 1998. "Market Structure, Publicly and Privately Financed R&D Spending. Empirical Evidence for Denmark," CIE Discussion Papers 1998-20, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
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    Cited by:

    1. Francesco Bogliacino & Mario Pianta, 2016. "The Pavitt Taxonomy, revisited: patterns of innovation in manufacturing and services," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 33(2), pages 153-180, August.
    2. Claudia Werker & Suma Athreye, 2004. "Marshall’s disciples: knowledge and innovation driving regional economic development and growth," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 505-523, December.
    3. Arauzo Carod, Josep Maria & Faggian, Alessandra & Mañé Vernet, Ferran, 2010. "Internal and External Determinants of Radical and incremental Innovation in SMEs: the case of Catalonia," Working Papers 2072/179605, Universitat Rovira i Virgili, Department of Economics.
    4. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2013. "Firms’ innovation across regions: an exploratory study," NIPE Working Papers 12/2013, NIPE - Universidade do Minho.
    5. Giulio Cainelli, 2008. "Spatial Agglomeration, Technological Innovations, and Firm Productivity: Evidence from Italian Industrial Districts," Growth and Change, Wiley Blackwell, vol. 39(3), pages 414-435, September.
    6. Li, Xiaoying & Wang, Jue & Liu, Xiaming, 2013. "Can locally-recruited R&D personnel significantly contribute to multinational subsidiary innovation in an emerging economy?," International Business Review, Elsevier, vol. 22(4), pages 639-651.
    7. DAUTEL Vincent & WALTHER Olivier, 2011. "The geography of innovation in the Luxembourg metropolitan region: an intra-regional approach," LISER Working Paper Series 2011-38, LISER.
    8. Andrew Copus & Dimitris Skuras & Kyriaki Tsegenidi, 2006. "Innovation and Peripherality: A Comparative Study in Six EU Member Countries," ERSA conference papers ersa06p295, European Regional Science Association.
    9. Vincent Dautel & Olivier Walther, 2014. "The geography of innovation in a small metropolitan region: An intra-regional approach in Luxembourg," Papers in Regional Science, Wiley Blackwell, vol. 93(4), pages 703-725, November.
    10. Ana Paula Faria & Natália Barbosa & Vasco Eiriz, 2015. "Firm Innovation and Co-Location in Portugal," Growth and Change, Wiley Blackwell, vol. 46(4), pages 574-592, December.
    11. Yanrui Wu, 2012. "R&D Behaviour in Chinese Firms," Economics Discussion / Working Papers 12-26, The University of Western Australia, Department of Economics.

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    R And D; Innovation; Regions; Urban; Agglomerations;


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