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Next to Production or to Technological Clusters? The Economics and Management of R&D Location

  • Mariani,Myriam

    (MERIT)

This paper examines the relationship between the location of R&D and production activities. By using a sample of 799 Japanese investments in Europe, it distinguishes between affiliates performing only R&D, both R&D and production, and production only. The analysis produces two main results. First, R&D tends to locate near production activities. Interestingly, however, the higher the science-intensity of a sector, the less important is the linkage with production - i.e. the higher the number of only R&D labs. This is interpreted as the effect produced by more general and transferable scientific work, compared to applied work. Second, by performing a multinomial logit analysis, we show that R&D independent or linked to production are attracted by different local factors. Managerial and policy implications are also discussed.

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File URL: http://digitalarchive.maastrichtuniversity.nl/fedora/objects/guid:a6bd60d7-f9d4-45d0-8207-fba8d9d058be/datastreams/ASSET1/content
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Paper provided by Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT) in its series Research Memorandum with number 027.

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Date of creation: 1999
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Handle: RePEc:unm:umamer:1999027
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  1. Jaffe, Adam B, 1989. "Real Effects of Academic Research," American Economic Review, American Economic Association, vol. 79(5), pages 957-70, December.
  2. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
  3. Antonio Ciccone & Robert E. Hall, 1995. "Productivity and the density of economic activity," Economics Working Papers 120, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December.
  5. Howells, Jeremy, 1990. "The location and organisation of research and development: New horizons," Research Policy, Elsevier, vol. 19(2), pages 133-146, April.
  6. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
  7. Archibugi, Daniele & Michie, Jonathan, 1995. "The Globalisation of Technology: A New Taxonomy," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 121-40, February.
  8. repec:fth:harver:1473 is not listed on IDEAS
  9. Naomi R. Lamoreaux & Kenneth L. Sokoloff, 1997. "Location and Technological Change in the American Glass Industry During the Late Nineteenth and Early Twentieth Centuries," NBER Working Papers 5938, National Bureau of Economic Research, Inc.
  10. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
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