The effect of vertical knowledge spillovers via the supply chain on location decision of firms
In this paper a game theoretic model is employed to analyze the relationship between strategic location decision of firms in the supply chain considering the role of horizontal and vertical knowledge spillovers, and numerical approach is applied to characterize the equilibria of the considered multi-stage game. Geographical concentration or isolation as equilibrium outcome is determined based on our different parameterizations and two scenarios each consists of two separated cases, which we establish according to the location of our agents. In the first scenario both suppliers are supposed to be located in different regions while in the second one they act in a same region. In addition, first case of each scenario considers geographical isolation of two producers whereas second case investigates the geographical concentration. Furthermore, the effect of different technological level of our agents on their final location decision is investigated.
|Date of creation:||01 May 2011|
|Date of revision:||20 May 2011|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Krugman, Paul & Venables, Anthony J., 1995.
"Globalization and the Inequality of Nations,"
Working Paper Series
430, Research Institute of Industrial Economics.
- Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
- Krugman, Paul & Venables, Anthony J, 1994. "Globalization and the Inequality of Nations," CEPR Discussion Papers 1015, C.E.P.R. Discussion Papers.
- Belderbos, Rene & Lykogianni, Elissavet & Veugelers, Reinhilde, 2005.
"Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing and Competition,"
CEPR Discussion Papers
5060, C.E.P.R. Discussion Papers.
- René Belderbos & Elissavet Lykogianni & Reinhilde Veugelers, 2008. "Strategic R&D Location by Multinational Firms: Spillovers, Technology Sourcing, and Competition," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(3), pages 759-779, 09.
- Dawid, Herbert & Greiner, Alfred & Zou, Benteng, 2010.
"Optimal foreign investment dynamics in the presence of technological spillovers,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 34(3), pages 296-313, March.
- Herbert Dawid & Alfred Greiner & Benteng Zou, 2008. "Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers," CREA Discussion Paper Series 08-07, Center for Research in Economic Analysis, University of Luxembourg.
- Hans Gersbach & Armin Schmutzler, 2003.
"Endogenous spillovers and incentives to innovate,"
Springer, vol. 21(1), pages 59-79, 01.
- Ishii, Akira, 2004. "Cooperative R&D between vertically related firms with spillovers," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1213-1235, November.
- Matouschek, Niko & Robert-Nicoud, Frédéric, 2003.
"The Role of Human Capital Investments in the Location Decisions of Firms,"
CEPR Discussion Papers
3875, C.E.P.R. Discussion Papers.
- Matouschek, Niko & Robert-Nicoud, Frederic, 2005. "The role of human capital investments in the location decision of firms," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 570-583, September.
- Juan Alcácer & Wilbur Chung, 2007. "Location Strategies and Knowledge Spillovers," Management Science, INFORMS, vol. 53(5), pages 760-776, May.
- John Cantwell, 2009. "Location and the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan, vol. 40(1), pages 35-41, January.
- Baldwin, Richard & Martin, Philippe, 2003.
"Agglomeration and Regional Growth,"
CEPR Discussion Papers
3960, C.E.P.R. Discussion Papers.
- d'Aspremont, Claude & Jacquemin, Alexis, 1988.
"Cooperative and Noncooperative R&D in Duopoly with Spillovers,"
American Economic Review,
American Economic Association, vol. 78(5), pages 1133-37, December.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis, . "Cooperative and noncooperative R&D in duopoly with spillovers," CORE Discussion Papers RP 823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Audretsch, David B. & Feldman, Maryann P., 2004. "Knowledge spillovers and the geography of innovation," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 61, pages 2713-2739 Elsevier.
- Andres Almazan & Adolfo De Motta & Sheridan Titman, 2007. "Firm Location and the Creation and Utilization of Human Capital," Review of Economic Studies, Oxford University Press, vol. 74(4), pages 1305-1327.
- Beugelsdijk, Sjoerd & Smeets, Roger & Zwinkels, Remco, 2008. "The impact of horizontal and vertical FDI on host's country economic growth," International Business Review, Elsevier, vol. 17(4), pages 452-472, August.
- Riggs, William & von Hippel, Eric, 1994. "Incentives to innovate and the sources of innovation: the case of scientific instruments," Research Policy, Elsevier, vol. 23(4), pages 459-469, July.
- Joanna Poyago-Theotoky, 1999. "A Note on Endogenous Spillovers in a Non-Tournament R & D Duopoly," Review of Industrial Organization, Springer, vol. 15(3), pages 253-262, November.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:31743. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.