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University research and the location of business R&D

Author

Listed:
  • Laura Abramovsky

    (Institute for Fiscal Studies and Institute for Fiscal Studies)

  • Rupert Harrison

    (Institute for Fiscal Studies)

  • Helen Simpson

    (Institute for Fiscal Studies and CMPO, Bristol)

Abstract

We investigate the relationship between the location of private sector R&D labs and university research departments in Great Britain. We combine establishment-level data on R&D activity with information on levels and changes in research quality from the Research Assessment Exercise. The strongest evidence for co-location is for pharmaceuticals R&D, which is disproportionately located near to relevant university research, particularly 5 or 5* rated chemistry departments. This relationship is stronger for foreign-owned labs, consistent with multinationals sourcing technology internationally. We also find some evidence for co-location with lower rated research departments in industries such as machinery and communications equipment.

Suggested Citation

  • Laura Abramovsky & Rupert Harrison & Helen Simpson, 2007. "University research and the location of business R&D," IFS Working Papers W07/02, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:07/02
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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