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Determinants of Manufacturing-R&D Co-location

  • Ketokivi, Mikko
  • Ali-Yrkkö, Jyrki

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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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: 2007
Date of revision:
Handle: RePEc:rif:dpaper:1082
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